Day: December 7, 2024

Alex plc produces monthly variance reports for all its production managers, showing the extent and cause of any variances from the company’s production plans.

These reports enable managers to take corrective action during the following month.

In terms of financial information, these reports can be classified as?

Select ONE answer:

1. Planning information
2. Operational information
3. Tactical information
4. Strategic information

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Tactical information (3) helps staff deal with short-term issues and opportunities. Operational information (2) is concerned with day-to-day issues. Strategic information (4) has longer-term concerns than both tactical and operational information. Planning information specifically helps staff involved in the planning process (1).
4. Not correct

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