Efficiency or Unit-Cost Ratio describes what?

• A. The alignment of programs with strategy
• B. The relation of resources to outputs, often measured as unit cost
• C. The speed of service delivery
• D. The quality of customer service

Answer: (B)

This item tests understanding of how efficiency or unit-cost ratio relates to resources and outputs. It captures the relationship between what you spend (resources and money) and what you produce (outputs), typically expressed as cost per unit of output. For example, if a program processes 200 cases in a month with total expenses of $10,000, the unit cost is $50 per case. This metric shows whether you’re getting more or less output for each dollar spent, which is the essence of efficiency.

The other aspects describe different performance dimensions. Alignment of programs with strategy focuses on whether activities support strategic goals, not on cost per unit. The speed of service delivery concerns how fast work is completed (throughput or cycle time), not how much it costs per unit. The quality of customer service relates to how well services meet customer expectations, not the relationship between resources used and outputs.