ACCA Applied Knowledge · Business and Technology · Financial information provided by business
A manager receives a report on monthly sales that is accurate and complete, but it arrives six weeks after the month end, by which time the pricing decision it was meant to support has already been made. Which characteristic of good information is most clearly lacking?
Timeliness is lacking. The report is accurate and complete, but it reaches the manager after the pricing decision has been taken, so it cannot be used when it is needed. Good information must be available in time to influence decisions.
- AAccuracy
- BCompleteness
- CTimelinessCorrect
- DCost-effectiveness
Explanation
Information must be available when decisions are made. The report is accurate and complete, so those characteristics are present. Its lateness means it cannot support the pricing decision, so timeliness is lacking.
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