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ACCA Strategic Professional · Advanced Performance Management · Management reports

Norvik Logistics' monthly management report to its board is 45 pages long, contains every account balance, and arrives three weeks after month end. Directors say they cannot see which issues need action. Which improvement would best address the main weakness?

The best improvement is a short, exception-based summary of key metrics against targets issued soon after month end, with detail available on request. This tackles information overload and lateness, whereas adding detail or reporting less often would make the report even less useful.

  1. AAdd more detailed ledger listings so no information is omitted
  2. BProduce a short, exception-based summary of key metrics against targets within a few days of month end, with detail available on requestCorrect
  3. CIssue the report quarterly so that more data can be included
  4. DReplace all financial figures with non-financial measures

Explanation

The report suffers from information overload and poor timeliness. An exception-focused, concise and prompt summary improves relevance and usability. Adding more detail worsens overload, and quarterly reporting reduces timeliness further.

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