A global environmental NGO is planning its resource allocation for the next five years to combat deforestation. Which of the following best describes the nature of the information required for this planning process?

Answer options:

Operational information, focusing on daily volunteer schedules.

Tactical information, focusing on annual budget variances.

Strategic information, which is long-term, forward-looking, and heavily reliant on external data sources.

Historical information, focusing strictly on past donation receipts.

How to approach this question

Identify the time horizon (five years) and the level of management (planning resource allocation). Long-term planning is strategic.

Full Answer

C.Strategic information, which is long-term, forward-looking, and heavily reliant on external data sources.✓ Correct

Strategic information is used by senior management to plan the long-term direction of the organization. It is typically forward-looking, summarized, and incorporates external environmental factors.

Common mistakes

Confusing tactical (medium-term) with strategic (long-term) information.

All questions Question 02

Practice the full ACCA MA — Management Accounting Practice Exam 4

38 questions · hints · full answers · grading

More questions from this exam

Q02A fintech startup is analyzing data to determine the viability of launching a new micro-lending a...Easy Q03A public water utility incurs a base maintenance cost of $10,000 per month for up to 5,000 gallon...Medium Q04An agricultural cooperative produces organic fertilizer. Which of the following costs would be cl...Medium Q05A cross-border logistics company uses an additive time series model to forecast shipping volumes....Medium Q06A heavy manufacturing firm tracks the cost of two key raw materials. Base Year (Year 0): Materia...Hard

View all 38 questions →