ACCA Applied Knowledge · Management Accounting · Presenting information
A finance manager is asked to write a report for non-financial operational managers explaining why monthly costs have risen. Which approach is MOST appropriate for communicating effectively with this audience?
Plain language with unavoidable technical terms defined, and key points highlighted at the start, is most appropriate. Communication must suit the reader's level of knowledge. Jargon, excessive ledger detail or unexplained tables would obscure the message for non-financial managers.
- AUse technical accounting terminology to demonstrate accuracy and professionalism
- BUse plain language, define any unavoidable technical terms and highlight the key points up frontCorrect
- CInclude every ledger account balance so that the readers can draw their own conclusions
- DLimit the report to a table of figures with no narrative so that it is objective
Explanation
Effective communication is tailored to the audience's knowledge and needs. Non-financial managers need clear language and prominent key messages. Technical jargon, excessive detail and unexplained figures reduce understanding.
Did you get it right without looking?
One question tells you little. A timed set on Presenting information shows your real accuracy, how long you take and where you lose marks.
More Presenting information questions
- A management accountant wants to show how total annual sales of $800,000 are split between four product lines so that managers can quickly c…
- A finance manager is preparing a presentation for the board showing how total costs of $800,000 divide between five cost categories, with th…
- Which of the following is a characteristic of a well-designed table of management information?
- A finance team shows a bar chart of profit by division. The vertical axis starts at $480,000 instead of zero, so that profits of $500,000 an…
- A sales manager wants to show how total monthly revenue of $240,000 is split between four product lines so that readers can see each line's …
- Monthly sales of three products are to be presented to the board: Alpha $40,000, Beta $35,000 and Gamma $25,000. The aim is to show each pro…