Problem on comparing budget of two consecutive years


Problem: Clarksville Community Food Pantry provides one hot meal each day of the year for 200 homeless individuals in the Clarksville area for budgeted cost of $100,000.00 annually. The program evaluation reports showed the following: In the year 2020, all the 200 homeless individuals have been provided the needed meals as planned, at the budgeted cost. In the year 2021, all the 200 homeless individuals have been provided the needed meals as planned at the cost of $80,000.00. In the year 2022, only 100 homeless individuals have been provided the needed services as planned, though the same budget was used as in 2020.

Which of the following best describes the program in the year 2020 (a) Efficient (b) Not efficient (c) Effective (d) Not effective

 

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Accounting Basics: Problem on comparing budget of two consecutive years
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