ACCA Applied Knowledge · Management Accounting · Sources of data
Which of the following is a feature of good-quality management information that is most directly affected when a report is produced so late that decisions have already been made?
Timeliness is the feature affected. Information must reach the user in time to influence a decision, so a report arriving after decisions are made has lost its value even if it is accurate and complete. The other characteristics relate to correctness, coverage and suitability rather than timing.
- ATimelinessCorrect
- BAccuracy
- CCompleteness
- DRelevance to the user's level
Explanation
Information must be available when it is needed to influence a decision. A late report fails on timeliness even if it is accurate and complete. The other characteristics concern correctness, coverage and suitability, not timing.
Did you get it right without looking?
One question tells you little. A timed set on Sources of data shows your real accuracy, how long you take and where you lose marks.
More Sources of data questions
- A management accountant is deciding whether to rely on data from a trade association survey. Which factor is the MOST relevant to assessing …
- Delta Co is preparing a sales forecast. It has the following data items: (1) last year's sales volumes by product from its sales system; (2)…
- A manufacturing company wants to estimate customer satisfaction with a new product. It sends its own questionnaire to 500 customers and anal…
- Which of the following is an example of an external source of data for a manufacturing company's management accountant?
- A retailer's point-of-sale system records thousands of individual transactions each day, including item code, time and price. Which statemen…
- A firm surveys its customers using a postal questionnaire. Which of the following is a recognised disadvantage of this method compared with …