ACCA Performance Management (F5) Certification Practice Exam

Which of the following is NOT a characteristic of effective information?

1. Accessible

2. Costly

3. Accurate

4. Complete

The correct answer is: Costly

Effective information is characterized by several key attributes that enhance decision-making and operational efficiency. Accessibility ensures that information is readily available to those who need it, fostering timely and informed decisions. Accuracy ensures that the information is correct, reliable, and free from errors, which is crucial for maintaining trust and making sound decisions. Completeness means that the information covers all necessary aspects and provides a full understanding of the context or situation at hand. On the other hand, being costly is not a desirable characteristic of effective information. While resources may need to be allocated to gather and process information, the focus should be on maximizing the value of the information relative to its cost. Effective information should ideally be cost-effective, meaning that the benefits derived from it outweigh the costs incurred in obtaining it. Thus, associating effectiveness with high costs contradicts the objective of seeking useful information that supports efficient performance and decision-making processes.