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ACCA Strategic Professional · Advanced Performance Management · Management reports

Ostrava Components' production report lists 60 measures but gives no targets, prior-period figures or explanations. The chief executive says it is accurate but not useful. Which qualitative characteristic of useful management information is most clearly lacking?

Relevance and understandability are lacking. The report is accurate but offers 60 measures with no targets, comparatives or commentary, so users cannot interpret them or decide what action to take. Adding benchmarks, trends and explanation would make it useful.

  1. ARelevance and understandability, because the data lacks benchmarks and interpretation to support decisionsCorrect
  2. BAccuracy, because the figures must be wrong
  3. CCost-effectiveness, because the report is too cheap
  4. DAuthority, because the report has too few contributors

Explanation

Without targets, comparatives or commentary, users cannot interpret the measures or decide what to do, so relevance and understandability are lacking. The scenario states the report is accurate, so accuracy is not the issue.

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