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ACCA Strategic Professional · Advanced Performance Management · Management reports

Zentra Foods plc reports to its board, to institutional investors and to the regional managers who run its stores. The finance director proposes sending all three groups the same 60-page monthly pack. Which criticism is most consistent with good management reporting practice?

Reports should be tailored to what each user needs to decide. Regional managers need detailed, timely information on items they control, while investors need summarised strategic and financial information. A single 60-page pack overloads users and obscures relevant messages.

  1. AReports should be designed around each user's decision needs, so regional managers need detailed, timely, controllable data while investors need summarised, strategic informationCorrect
  2. BInvestors should receive more operational detail than regional managers because they own the company
  3. CMonthly reporting is inappropriate for any user group and should be replaced by annual reporting
  4. DA single standard pack is best because it guarantees consistency and removes the need to consider user needs

Explanation

Effective management reports are tailored to the decisions each user makes. Store managers need detailed, frequent information on items they control, while investors need concise strategic and financial results. A single large pack overloads users and hides what matters, so the other options are wrong.

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