Skip to content

ACCA Applied Knowledge · Management Accounting · Presenting information

A finance manager must choose a format to send monthly budget-versus-actual results to 40 budget holders, each of whom needs to see only their own department's figures and an explanation of significant variances. Which approach best follows good presentation principles?

The best approach is a short tailored report for each budget holder showing their own department's figures, variances and comments. Good information is relevant to the user, concise, clear and timely. Full company reports or raw ledger data add irrelevant detail, and quarterly verbal summaries are too late.

  1. ASend each budget holder the full company report so they have all the information
  2. BSend each a short tailored report showing their own department's figures, variances and commentsCorrect
  3. CSend a verbal summary at the quarterly meeting
  4. DSend a spreadsheet of raw ledger transactions for all departments

Explanation

Good information is tailored to the user's needs and is relevant, concise and clear. A short departmental report with variances and comments meets this. The full report and raw ledger data contain irrelevant detail, and a quarterly verbal summary is not timely or documented.

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.

Practise Presenting informationFree diagnostic mock

More Presenting information questions