Certified Professional Public Buyer (CPPB) Practice Test

The ratio between inputs and outputs is used to measure which attribute?

1. Efficiency

2. Effectiveness

3. Contributions

4. Progress

The correct answer is: Efficiency

The ratio between inputs and outputs is a fundamental measure of efficiency, which reflects how well resources are utilized to produce desired results. Efficiency focuses on achieving maximum output with the least amount of input, emphasizing cost-effectiveness and resource management. When assessing efficiency, organizations typically look at operational processes to determine whether they are achieving their goals with minimal waste or use of resources. A higher ratio of outputs to inputs indicates greater efficiency, suggesting that the organization is accomplishing more with less. While effectiveness is related, it specifically measures how well an organization meets its objectives, regardless of the resources used. Contributions and progress, on the other hand, do not directly relate to the quantitative relationship between inputs and outputs but rather to qualitative impacts and advancements towards goals. Thus, the clear connection of the ratio of inputs to outputs directly relates to efficiency as the best measure.