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.
Value for money refers to yielding the best returns for each dollar spent in terms of quality, timeliness, reliability, after-sales service, upgradeability, price and source.
Value for money means achieving the desired outcome at the best possible price.
1. Better quality services for the customers/users at optimal cost to the taxpayer. 2. The provision of the right goods and services from the right source, of the right quality, at the right time, delivered to the right place and at the right price. (Judged on the basis of a financial appraisal taking account of all relevant costs.)
The combination of cost (over the whole life of a project) and quality which best meets an organisation's requirements.
The optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user's requirement. Assessed by the National Audit Office using the criteria of economy, efficiency and effectiveness.
The best use of available resources within a budget to provide a suitable relationship between capital and recurrent costs; to satisfy the user and to afford the opportunity for efficient management. Sometimes abbreviated to VFM.