ACCA Applied Knowledge · Management Accounting · Sources of data
A production manager receives a detailed cost report on the 20th of each month covering the previous month's activity. By then, the month's production decisions have already been made. Which quality of good information is most clearly lacking?
Timeliness is lacking. The report reaches the manager after the month's production decisions have already been taken, so it cannot influence them. Good information must be available when it is needed, regardless of how accurate or complete it might be.
- ATimelinessCorrect
- BAccuracy
- CCompleteness
- DRelevance to the cost centre
Explanation
Information must be available when decisions are made. Here the report arrives after the decisions, so it is not timely. Nothing in the scenario suggests errors, missing items or irrelevant content, so accuracy, completeness and relevance are not the issue.
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