This term is widely used to describe the optimal balance between outputs and inputs. Good value for money gives efficiency (the ratio of an activity to the resources input), economy (the purchase of goods or services at lowest cost) and effectiveness (the extent to which objectives are achieved)
is in the perception of the buyer or receiver of goods and/or services. Proof of good value for money is in believing or concluding that the goods/services received was worth the price paid. Examples of the types of factors that may be considered are suitability, quality, skills, price, whole of life costs and other criteria. The mix of these and other factors and the relevant importance of each will vary on a case by case basis.
Value for money is a term that is used to assess whether the grant is getting sufficient impact for the money spent. It is often calculated by dividing the total project costs by the number of beneficiaries that the project will reach. A study of the project to show that the work is effective (meets its aims) efficient and economic.