Answer to Question #179970 in Economics for Karabo Maluleke

Question

 “Cost-effectiveness” and “transparency” are regarded and emphasised by the Constitution of the Republic of South Africa, 1996, and other legislation as two of the five pillars for procurement of goods and services. Distinguish between the two pillars by describing what the two concepts involve. (You do not have to describe the levels of accountability.)

Answer 1

Cost Transparency is a term used to describe the tracking within the organisation of the total cost required to provision and maintain products and services for the benefit of the enterprise.

The definition of cost effective is something that is a good value, where the benefits and usage are worth at least what is paid for them.