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Session 2 - Data and Information in Management Accounting

The document discusses the distinction between data and information, defining data as raw facts and information as processed data that is meaningful for decision-making. It outlines sources of internal and external information, as well as characteristics of good information. Additionally, it covers sampling techniques and the format for presenting reports.

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sydneytore59
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24 views13 pages

Session 2 - Data and Information in Management Accounting

The document discusses the distinction between data and information, defining data as raw facts and information as processed data that is meaningful for decision-making. It outlines sources of internal and external information, as well as characteristics of good information. Additionally, it covers sampling techniques and the format for presenting reports.

Uploaded by

sydneytore59
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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DATA AND INFORMATION IN

MANAGEMENT ACCOUNTING
Topic 2
Defining data

Defining information

TOPIC OUTLINE Distinction between data and information

Sources of information

Characteristics of good information


DEFINING DATA

Data can be defined as a


representation of facts,
concepts, or instructions in a Data is represented with the
formalized manner, which help of characters such as
should be suitable for alphabets (A-Z, a-z), digits (0-
communication, 9) or special characters
interpretation, or processing (+,-,/,*,<,>,= etc.).
by human or electronic
machine.
• Information is organized or classified data, which has some
meaningful values for the receiver. Information is the processed
data on which decisions and actions are based.

DEFINING INFORMATION
DISTINCTION BETWEEN DATA AND INFORMATION

•DATA ARE THE FACTS OR WHEN DATA IS PROCESSED, THE HISTORY OF TEMPERATURE THE NUMBER OF VISITORS TO A
DETAILS FROM ORGANIZED, STRUCTURED OR READINGS ALL OVER THE WORLD WEBSITE BY COUNTRY IS AN
WHICH INFORMATION IS PRESENTED IN EACH CONTEXT FOR THE PAST 100 YEARS IS EXAMPLE OF DATA. FINDING OUT
DERIVED. FOR DATA TO BECOME SO AS TO MAKE IT USEFUL, IT IS DATA. IF THIS DATA IS THAT TRAFFIC FROM THE U.S. IS
INFORMATION, DATA NEEDS TO CALLED INFORMATION. ORGANIZED AND ANALYSED TO INCREASING WHILE THAT FROM
BE PUT INTO CONTEXT . FIND THAT GLOBAL AUSTRALIA IS DECREASING IS
TEMPERATURE IS RISING, THEN MEANINGFUL INFORMATION.
THAT IS INFORMATION.
SOURCES OF INTERNAL
INFORMATION

Internal External

Primary Secondary
SOURCES OF INTERNAL
INFORMATION

Financial Personnel Marketing


Information Information Information

Manufacturi Administrati
Purchasing
ng on
Information
information Information
SOURCES OF EXTERNAL
INFORMATION

Trade
Government
Groupings

Commerciall Databases
y Provided & Research
SAMPLING

• Sampling is the process of selecting


units (e.g., people, organizations)
from a population of interest so that
by studying the sample we may fairly
generalize our results back to the
population from which they were
chosen.
SAMPLING
TECHNIQUES

Simple Stratified Systematic


Random

Cluster Convenience Purposive

Quota Snowball Multi-Stage


Accurate/ Reliable
Complete
Cost-effective
CHARACTERISTI
CS OF GOOD Understandable
INFORMATION
Relevant
Available/ Accessible
Timely
Easy to use/ Concise
PRESENTING INFROMATION

TABLES CHARTS AND GRAPHS REPORTS


FORMAT OF A REPORTS
• TITLE - Most reports are usually given a heading to show that it is a report.
• WHO IS THE REPORT INTENDED FOR? - It is vital that the intended recipients of a
report are clearly identified. For example, if you are writing a report for Joe Bloggs,
it should be clearly stated at the head of the report.
• WHO IS THE REPORT FROM? - If the recipients of the report have any comments or
queries, it is important that they know who to contact.
• DATE - We have already mentioned that information should be communicated at
the most appropriate time. It is also important to show this timeliness by giving
your report a date.
• SUBJECT - What is the report about? Managers are likely to receive a great number
of reports that they need to review. It is useful to know what a report is about
before you read it!
• APPENDIX - In general, information is summarized in a report and the more
detailed calculations and data are included in an appendix at the end of the report.

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