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
Recommend whether marginal or absorption costing should be use for internal monthly reporting

Q. Evaluate a proposed investment? BMP Consulting (BMPC) conducted an analysis of Delta Corp. and found that the firm consists of two different divisions: Pet Lovers, a pet sup

The Search for Alternative Courses of Action The second stage of the decision-making model is a search for a range of possible courses of action (or strategies) that might enab

You want to purchase a house that costs $325,000. You have a down payment of $65,000 and will take out a mortgage to make up the difference. The AMC Mortgage Corporation offers a q

Required: 1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current li

Break even point or B.E.P. pricing method : Break even point is the volume of sales at which the total sale revenue of the product is equal to its total cost. In other words, it

A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect

BUDGETARY CONTROLS Control in a business is the process of guiding organization into viable patterns of activity in an environment. The main purpose of a control system is to m

Techniques of CVP Analysis  The CVP  analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these

Analysis Various business decisions have recurrent themes: whether to the outsource production or to the support functions, what level of production and pricing to establish, w