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ACCA Applied Knowledge · Business and Technology · Financial information provided by business

Brindle Co's management accountant produces a report showing profit by customer segment, forecasts for next quarter and the percentage of deliveries made on time. Which combination of features of management accounting does this report best illustrate?

The report shows segmental detail through profit by customer, forward-looking information through the quarterly forecast, and non-financial data through on-time deliveries. These are typical features of management accounting, whereas statutory format, audit, disclosure and a historic focus belong to financial accounting.

  1. AStatutory format, historic focus and financial data only
  2. BSegmental detail, forward-looking information and non-financial dataCorrect
  3. CAudited information, mandatory disclosure and aggregated data
  4. DExternal focus, standardised format and a historic orientation

Explanation

Profit by customer segment is detailed, segmental analysis; the quarterly forecast is forward-looking; on-time deliveries is a non-financial measure. Statutory format, audit and mandatory disclosure are features of financial accounting, so the other options are wrong.

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