ACCA Applied Skills · Performance Management · Management information systems
A finance director wants information to be of good quality. A monthly cost report is accurate and complete, but it reaches managers six weeks after the month end, by which time the problems it reveals can no longer be corrected. Which characteristic of good information is most clearly lacking?
Timeliness is lacking. The report is accurate and complete, but it arrives six weeks after the month end, too late for managers to act on the problems it shows. Information must be available when decisions are made to be useful.
- ATimelinessCorrect
- BAccuracy
- CCompleteness
- DUnderstandability
Explanation
The report is stated to be accurate and complete, so options B and C are ruled out. Its problem is that it arrives too late to allow corrective action, which is a failure of timeliness. Nothing suggests the report is hard to understand.
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