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

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