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

Karen Ltd's finance team produces a monthly report comparing actual costs with budget for each department manager, with a weekly sales summary for the sales director. Which characteristic of good information is most clearly being addressed by tailoring reports to each recipient?

Tailoring reports to each recipient addresses relevance. Information is useful only if it relates to the decisions that the particular user must make, so giving department managers cost variances and the sales director sales summaries ensures each receives what matters to them.

  1. ARelevance to the user's needsCorrect
  2. BAbsolute accuracy to the nearest cent
  3. CCompleteness of every transaction
  4. DLow cost of producing the information

Explanation

Tailoring reports so each manager receives the data that relates to their decisions makes the information relevant to the user. Accuracy and completeness are separate qualities, and tailoring does not primarily aim at lowering cost.

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