Management Finance - Part 1

If a school spends less than budgeted but fails to achieve its educational objectives, which conclusion is most defensib...

Type: MCQ • Marks: 1
If a school spends less than budgeted but fails to achieve its educational objectives, which conclusion is most defensible?
Options
A. It was necessarily effective
B. It was necessarily efficient
C. Lower expenditure alone does not establish effectiveness
D. Under-spending automatically indicates better financial administration
Explanation
Financial savings can coexist with poor outcomes. Public financial management must consider economy, efficiency and effectiveness.
UPSC Principal & Vice Principal Management Finance Administration

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