CMA Final · Cost and Management Audit · Management Reporting Issues and Analysis
A management auditor reviewing the MIS of a manufacturing company finds that monthly reports reach the plant manager 25 days after month end, though decisions on production schedules are taken weekly. Which qualitative attribute of a good management report is most clearly lacking?
Timeliness is lacking. A report delivered 25 days after the month closes cannot inform weekly production decisions, so even accurate content loses its value. Good management reports must reach the user early enough to influence action, which is the essence of timeliness.
- AAccuracy
- BTimelinessCorrect
- CComparability
- DConciseness
Explanation
Reports arriving 25 days after month end cannot support weekly decisions, so the information loses its decision usefulness. The delay is the defect, not the correctness, comparability or length of the content, none of which is mentioned in the facts.
Did you get it right without looking?
One question tells you little. A timed set on Management Reporting Issues and Analysis shows your real accuracy, how long you take and where you lose marks.
More Management Reporting Issues and Analysis questions
- Which of the following is the primary purpose of a management report prepared under a responsibility accounting system?
- A division's budgeted sales were Rs 50 lakh and actual sales were Rs 46 lakh, while budgeted contribution margin is 40% of sales. Actual var…
- Sagar Foods Ltd budgeted sales of ₹40,00,000 and actual sales were ₹36,00,000. Budgeted variable cost was 60% of sales. Actual variable cost…
- In a management report, a ratio such as return on capital employed is most useful for decision making when it is presented
- In the context of management reporting, which characteristic best describes a report that follows the principle of 'management by exception'…
- Which of the following is the most appropriate way to design reports for different levels of management in a company?