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- 5 Marks
Question
Good decisions do not only emanate from good decision-makers but also from the quality of information used in the decision-making process.
Required:
Identify FIVE (5) qualities of good management accounting information. (5 marks)
Answer
- Relevance: Information must fit the purpose for which it was gathered, aiding managers in making appropriate decisions.
- Completeness: Information should be complete, avoiding sub-optimal decisions by providing all necessary data.
- Accuracy: The information must be correct, preventing misleading conclusions.
- Clarity: It should be easy to understand to ensure managers can act on it properly.
- Timing: Information should be available when needed, allowing managers to make timely decisions.
(5 marks evenly spread)
- Topic: Decision-making techniques, Management Accounting Information
- Series: NOV 2019
- Uploader: Cheoli