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ACCA Applied Skills · Performance Management · Management information systems

A retail company's database records each till transaction as a line showing product code, quantity and price. A regional manager receives a weekly report showing sales by product category, ranked by profit contribution, with a comment that two categories have fallen below target. Which statement correctly describes the weekly report in relation to the till records?

The weekly report is information. The raw till lines are data, and once they are processed, summarised by category and compared with targets they gain context and meaning for a decision. Knowledge arises only when the manager interprets that information using experience.

  1. AThe report is information because the raw till records have been processed, organised and given context relevant to a decisionCorrect
  2. BThe report is data because it still consists of numbers and product codes taken from the till system
  3. CThe report is knowledge because it contains a comment on performance against target
  4. DThe till records are information because they are stored in a structured database

Explanation

Data are raw facts with no context. Processing the till lines into ranked category profit contribution and comparing with targets gives them meaning for decision-making, which is information. Option B is wrong because the report is processed, not raw. Knowledge would require the manager to apply experience to interpret it and decide what to do.

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