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ACCA Strategic Professional · Advanced Performance Management · Management reports

Halvern Ltd's report to regional managers shows only the current month's actual versus budget sales. A consultant criticises it for encouraging short-termism and ignoring external context. Which redesign best addresses both criticisms?

Adding rolling trends, leading indicators like customer retention and sales pipeline, and external market benchmarks alongside budget comparisons best answers both criticisms. It shifts attention beyond one month's result and supplies external context, unlike greater precision, prior-year-only comparison or annual-only reporting.

  1. AShow actual versus budget to two decimal places for greater precision
  2. BAdd rolling trends, leading indicators such as customer retention and pipeline, and market benchmarks alongside budget comparisonsCorrect
  3. CReplace budget comparisons with prior-year figures only
  4. DReport only the cumulative annual figure at year end

Explanation

Short-termism is reduced by adding forward-looking and longer-term measures, and external benchmarks give context. Precision adds no insight. Prior-year only comparison ignores targets and context, and year-end-only reporting removes timely control.

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