ACCA Applied Knowledge · Management Accounting · Presenting information
A report on departmental costs will be read by the sales manager, who has no accounting training and needs to take action on overspends. Which approach is MOST consistent with effective presentation?
A one-page summary highlighting overspends in plain language, with detail in an appendix, is best. It fits the non-accountant reader's needs, is concise and supports action. Long coded schedules, a single total, or the accountant's convenience do not give the manager usable information.
- AProvide a detailed 20-page schedule of ledger balances with accounting codes
- BProvide a one-page summary with overspends highlighted, brief explanations in plain language and the supporting detail in an appendixCorrect
- CProvide only the total overspend figure for the company
- DProvide the report in the format the accountant finds easiest to produce
Explanation
The report should suit the user: concise, understandable and action-oriented, with detail available for reference. A total only is not specific enough to act on, a long coded schedule is hard to use, and producer convenience ignores the reader's needs.
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