The performance measures for 'not-for-profit' organisations include:
A) net cash flow,break-even,efficiency,customer satisfaction
B) debt cost,quality,break-even,efficiency,capital charge
C) quality,break-even,efficiency,customer satisfaction
D)capital charge,quality,break-even,customer satisfaction

Question

Quizplus · Accepted Answer

Not-for-profit organizations do not have an objective of making profits, hence measuring their success using net cash flow or a capital charge is not appropriate. However, the not-for-profit organizations aim to provide quality services to their beneficiaries while minimizing their costs. Therefore, measuring their efficiency, break-even point, and customer satisfaction are the relevant performance measures that should be used. Thus, option C is the best choice as it contains quality, break-even, efficiency, and customer satisfaction, which are the relevant measures for not-for-profit organizations.

The Performance Measures for 'Not-For-Profit' Organisations Include