Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The concept of performance measures according to the Financial Accounting Standards Board (FASB) includes metrics that provide insights into the effectiveness of a service or program. The three primary categories commonly referenced are service efforts, service accomplishments, and efficiency/cost effectiveness.

Service efforts refer to the inputs and resources dedicated to producing certain services, while service accomplishments relate to the outcomes or impacts achieved through those efforts. Efficiency and cost effectiveness measure how well resources are used to achieve results.

Resource allocation, although it is a critical aspect of organizational management and financial reporting, does not fit the specific framework FASB outlines for performance measures. It involves the distribution of resources, which contributes to the overall accounting principles but does not directly serve as a measure of performance in the context described by FASB. Consequently, this makes resource allocation distinct from the three established types of performance measures.