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ACCA Applied Skills · Performance Management · Uses and control of information

A production manager at Karel Co has worked with the company's machines for twenty years and uses this experience, together with the weekly output reports, to decide when to schedule maintenance. The manager's understanding of how machine behaviour links to output patterns is best described as:

It is knowledge. Knowledge is information that has been combined with experience, context and understanding, which lets the manager judge when maintenance is needed. It is neither raw data nor a formal report, and it is not big data.

  1. ARaw data, because it has not been recorded in a system
  2. BKnowledge, because information has been combined with experience and understanding to enable judgementCorrect
  3. CA management information report, because it supports a decision
  4. DBig data, because it comes from many years of observation

Explanation

Knowledge arises when information is combined with experience, context and understanding so that it can guide judgement and action. The manager's understanding is not a formatted report, is not unprocessed facts, and the term big data refers to large, fast, varied datasets, not personal expertise.

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