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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Calloway Hotels replaces its monthly static variance report with a real-time system feeding live occupancy and cost data into a rolling forecast. Which benefit is most directly gained?

The most direct benefit is timeliness: managers can spot and react to adverse trends during the period instead of waiting for a month-end report. Live data keeps rolling forecasts current, although budgets, targets and data validation remain necessary for planning, motivation and reliable information.

  1. AManagers can detect and respond to adverse trends within the period rather than after it endsCorrect
  2. BBudgets become unnecessary because actual results are always correct
  3. CStaff reward schemes no longer need any targets
  4. DData accuracy is guaranteed without validation

Explanation

Real-time data shortens the feedback loop so corrective action can occur sooner and forecasts stay current. It does not remove the need for budgets or targets, and automated feeds still need validation to ensure accuracy.

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