Attributes of good information, Managerial Accounting

Attributes of good information

1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning to the person receiving it. Good information should have the following attribute:

2) It must be relevant to a user’s requirements. For the communicator this requires the following:

3) Recognizing the user: Information must be suited and sent to the right person i.e. the person who needs it to do his job.

4) Getting the principle right: It is effective only when it helps the user to make decisions.

5) Getting the volume correct: Information must be complete for its purpose and should not omit any necessary item. It should be no greater in volume than the users would find helpful or be able to take in.

6) It should be accurate in the user’s requirements i.e. must be accurate and error free.

7) It must inspire the user’s confidence i.e. information must not give the user any reason to distrust it, disbelieve it or avoid it by making sure the information is neutral.

8) It must be timely: The information must be readily available within the time period which makes it useful. It must be at the right position at the right time.

9) It should be properly communicated: Information will misplace its value if it is not clearly communicated to the users in a suitable format and through a suitable medium.

10) It must be cost effective: Good information should not cost more than it’s worth. 

Gathering, storing, retrieving and communicating an item of information may require expenses in form of time, energy and resources. If the expense is greater than the potential value of the item, then it should not be communicated.

Posted Date: 12/4/2012 6:05:38 AM | Location : United States







Related Discussions:- Attributes of good information, Assignment Help, Ask Question on Attributes of good information, Get Answer, Expert's Help, Attributes of good information Discussions

Write discussion on Attributes of good information
Your posts are moderated
Related Questions
Question 1: Assuming that you are appointed consultant on economic matters for a company and you are asked to analyse the market structures in various sectors of the economy.

Human behavior and budgetary control An important feature of control in business is that control is exercised by managers over people. Their attitudes and response to budgetary

Transportation model In the obvious sense, the model deals with the determination of a minimum cost plan for transporting a single commodity from a number of sources (e.g. factor

What the traffic can bear pricing Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms.


Implementation of the Decisions Once alternative courses of action have been chosen, they must be implemented as part of the budgeting procedure. The budget is a financial plan

Innova uses 1,056 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct material

Compute the value of share of a company? A company paid dividend amounting to Rs. 0.75 each share during the last year. The company is supposed to pay Rs. 2.00 per share throug

Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe

7 feed from control to planning It is realized these days more than even before that management control is primarily a human activity which should focus on how to help individu