ACCA BT · Chapter 5 · Question 6 of 10
Information for decision-making should have certain qualities. Which of the following is the best example of 'relevance'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A report for a pricing decision that includes only costs that will change as a result of the decision
Explanation
Relevant information is information that is useful for its purpose and relates to the decision being made, such as future incremental costs for a pricing decision. Speed of production relates to timeliness, checking for errors relates to accuracy, and clear presentation relates to understandability.
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