ACCA Applied Knowledge · Management Accounting · Accounting for management
Which of the following is the best example of information, as opposed to data, in a management accounting context?
A report showing labour cost per unit by department against budget is information, because raw data has been processed, summarised and given context to support decisions. Timesheet entries, unopened invoices and machine counter readings are still unprocessed raw data.
- AA list of 4,000 individual timesheet entries for the month
- BA report showing labour cost per unit by department compared with budgetCorrect
- CA batch of unopened supplier invoices
- DThe raw readings from a machine counter at each minute
Explanation
Information is data that has been processed so that it is meaningful and useful for decision making. A report of labour cost per unit against budget is processed and has context. The other options are unprocessed raw facts, so they are data.
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