Neco Model Questions Vol1 2017 Government Question 6
Practice objective / multiple choice question 6 from the 2017 Neco Model Questions Vol1 Government examination.
An agency was allocated a budget of N(9.58) million (rounded to two decimal places). The actual cost incurred was N(12.00) million, which consists of a 20 % cost overrun on the budgeted amount plus a fixed overhead of N(0.50) million. The agency's target output was 600 units. It generated revenue of N(9.00) million, and each unit is sold at N(12{,}000). The performance index (PI) is defined as \(\displaystyle PI = \frac{\text{actual output}}{\text{target output}} \bigg/ \frac{\text{actual cost}}{\text{budgeted cost}}\). An agency is considered efficient if \(PI \ge 1\). Determine whether the agency is efficient.
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About This Question
This is Neco Model Questions Vol1 2017 Government Question 6. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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