ACCA Applied Knowledge · Management Accounting · Presenting information
A management accountant is preparing a monthly report for the board of directors. Which of the following would MOST improve the usefulness of the report for its intended readers?
The most useful improvement is presenting key figures in summary form with a clear purpose and headings matched to the board's decision needs. Reports should be relevant, clear and concise for the reader, whereas excessive detail, jargon or delay for false precision reduces usefulness.
- AIncluding every available cost code so that nothing is omitted
- BPresenting key figures in summary form, with a clear purpose and headings tailored to the board's decision needsCorrect
- CUsing technical accounting terminology throughout to show professionalism
- DDelaying issue until all figures are finalised to the nearest cent
Explanation
Effective reports are tailored to the user and the purpose, and are clear and concise. Overloading with detail or jargon hinders understanding, and excessive delay for precision reduces timeliness and therefore relevance.
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