CMA Final · Cost and Management Audit · Management Reporting Issues and Analysis
A management auditor reviewing the monthly reporting system of Kaveri Engineering Ltd finds that production variance reports reach the plant head 25 days after month end, when corrective action is no longer possible. Which attribute of a good management report is chiefly lacking?
Timeliness is lacking. Information that reaches the plant head 25 days after month end arrives too late to correct variances, so the report loses its decision-making and control value regardless of its accuracy, brevity or comparability.
- ATimelinessCorrect
- BComparability
- CBrevity
- DAccuracy to the last rupee
Explanation
A report delivered after the opportunity for corrective action has passed fails the test of timeliness. Nothing in the facts says the report is too long, non-comparable or numerically inaccurate. Precision to the rupee would not cure a 25-day delay.
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
- 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?
- Which of the following is an essential feature of a management report that is meant to support decision making rather than merely record his…
- Which of the following is the most appropriate design feature of a responsibility-based management reporting system?
- A management auditor reviewing the MIS of Kaveri Engineering Ltd finds that the monthly production report reaches the plant head 20 days aft…