ACCA Strategic Professional · Advanced Performance Management · Management reports
Dalmore Logistics' operations director receives a weekly report showing a monthly financial variance analysis that arrives 20 days after month end. She says it is accurate but of little use for managing delivery performance. Which weakness of the report is most relevant?
The report lacks timeliness and relevance for her operational decisions. Delivery managers need frequent, near real-time operational information to act quickly, so a late monthly financial variance report is of limited use despite being accurate.
- AIt is not timely or action-oriented for her operational decisions, so frequent, near real-time operational data would suit her betterCorrect
- BIt is too accurate
- CIt includes financial data, which should never appear in management reports
- DIt is addressed to a named individual
Explanation
Operational managers need timely information to act. A report 20 days after month end cannot support weekly delivery decisions, whatever its accuracy. Accuracy is a strength, and financial data and naming the recipient are not weaknesses.
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