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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Tamsin Bank wants to replace its annual budget variance review with real-time analytics on transaction data so that managers can see cost and revenue drivers daily. Which is the most likely benefit of this change for management control?

The likely benefit is earlier detection of adverse trends, allowing management to take corrective action sooner than with an annual variance review. Real-time analytics shortens the feedback loop, but budgets, data validation and privacy compliance are still needed.

  1. AEliminates the need for any budgets or targets
  2. BAllows earlier detection of adverse trends so corrective action can be taken soonerCorrect
  3. CGuarantees that all data is accurate without validation
  4. DRemoves the risk of data privacy regulation

Explanation

Real-time data shortens the feedback loop, so deviations can be spotted and acted on earlier than with periodic reviews. Budgets and targets are still required, data still needs validation, and privacy obligations remain, making the other options incorrect.

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