ACCA Applied Knowledge · Management Accounting · Presenting information
A management accountant is preparing a formal report for the board of directors on the performance of a division. Which of the following should be included in the 'terms of reference' section of the report?
The terms of reference state the scope and purpose of the report, including who asked for it and which issues it covers. Recommendations go in a later section, and detailed workings or statistical tables are normally placed in appendices rather than here.
- AThe scope and purpose of the report, including who requested it and the issues to be coveredCorrect
- BA detailed list of all calculations carried out in preparing the report
- CThe recommendations the author wishes the board to adopt
- DSupporting statistical tables and charts used in the analysis
Explanation
Terms of reference set out why the report is being written, who commissioned it and what it will cover. Recommendations belong in the conclusions section, while calculations and tables are placed in appendices.
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