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ACCA Strategic Professional · Advanced Performance Management · Management reports

Orlin Ltd's sales report to the board states: 'Revenue rose 12% against budget.' It gives no explanation, and the sales director later reveals the rise came from a one-off contract. Which characteristic of good management information is most clearly lacking?

Relevance and context are lacking. A bare 12% rise hides that it came from a one-off contract, so the board cannot judge underlying performance. A better report would explain causes and separate recurring from non-recurring items to support decisions.

  1. ARelevance and context, because the figure is not explained or separated into recurring and one-off elementsCorrect
  2. BConfidentiality, because the board saw the figure
  3. CUniformity of format across all departments
  4. DRounding of figures to the nearest thousand

Explanation

A headline variance without analysis does not help the board judge underlying performance. Splitting recurring from one-off items and explaining causes provides relevance and insight. The other options are not the weakness described.

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