ACCA Applied Knowledge · Management Accounting · Sources of data
A production manager receives a detailed cost report 6 weeks after the end of each month. By then, production methods have changed and the report cannot be used to correct problems. Which quality of good information is MOST clearly lacking?
Timeliness is the quality most clearly lacking. Good information must reach the user soon enough to influence decisions. A report arriving six weeks after month end is out of date and cannot be used to correct current production problems, even if it is accurate and detailed.
- AAccuracy
- BTimelinessCorrect
- CCompleteness
- DUnderstandability
Explanation
Information must be available when decisions are needed. The report arrives so late that corrective action is impossible, so timeliness is lacking. Nothing in the scenario suggests errors (accuracy), missing items (completeness) or confusing presentation.
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