ACCA Performance Management (F5) Certification Practice Exam

Which characteristic is essential for effective information?

1. Timely

2. Ambiguous

3. Unreliable

4. Disorganized

The correct answer is: Timely

Timeliness is essential for effective information as it ensures that the data provided is relevant and can influence decision-making processes appropriately. When information is timely, it means that it is available when it is needed, enabling managers and decision-makers to react promptly to changes in the environment or to emerging opportunities and threats. In contrast, information that is ambiguous, unreliable, or disorganized can lead to confusion and misinterpretation, hindering effective decision-making. Ambiguous information lacks clarity, making it difficult for users to derive specific insights. Unreliable information does not provide a trustworthy foundation for making decisions, as it may be inaccurate or misleading. Disorganized information can also create challenges in accessing and understanding the data efficiently, thus impeding timely decision-making. In summary, for information to be effective, it must be timely, ensuring that stakeholders have the most relevant data at their fingertips when they need it most.