ACCA Strategic Professional · Advanced Performance Management · Strategic management accounting

Marlowe Logistics has installed telematics in its fleet, producing real-time data on routes, fuel use and driver behaviour. Management currently produces a monthly variance report from the general ledger. Which change would best align information provision with the strategic need for timely, decision-useful management information?

The best change is a dashboard linking telematics data to key performance indicators so managers can act within the month. Real-time data creates value only when it is timely and relevant to decisions. Longer monthly reports or annual archiving delay insight, and dropping non-financial measures wastes the new data.

AProvide a dashboard that links telematics data to key performance indicators so managers can act within the monthCorrect
BIncrease the number of lines in the monthly ledger-based variance report
CStore the telematics data in an archive for annual review by the board
DReplace all non-financial indicators with financial measures drawn from the ledger

Explanation

Real-time data is valuable only if it reaches decision-makers promptly and linked to relevant KPIs. A dashboard enables intra-month action. Adding report lines or annual archiving delays use, and removing non-financial measures discards the richest new information.

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