Accounting For Management And Sources Of Data

Information refers to processed data that has been organized and structured in a meaningful way, making it useful and understandable. Data, on the other hand, refers to raw and unprocessed facts and figures. Therefore, it is correct to say that information is processed data.

The statement suggests that the cost of producing information should be greater than the value of the benefits to management. However, this is not true. In order for information to be valuable to management, the benefits should outweigh the cost of producing it. Otherwise, it would not make sense for management to invest in acquiring information that does not provide sufficient value. Therefore, the correct answer is false.

Statement (i) is correct because the main users of financial accounting information, such as investors, creditors, and government agencies, are external to an organization. They rely on financial statements to make decisions about the organization.

Statement (ii) is incorrect because cost accounting is not a part of financial accounting that records cash received and payments made by an organization. Cost accounting focuses on the analysis and allocation of costs within an organization to help with internal decision-making and control.

Systematic sampling is a type of sampling where the elements are selected at fixed intervals from a list or population. In this case, the decision to select the 12th item and every 20th item thereafter indicates a systematic sampling approach. This method ensures that every 20th item is included in the sample, providing a representative sample of the population.

The statement that data is information that has been processed in such a way as to be meaningful to its recipients is incorrect. Data refers to raw facts and figures that have not been processed or organized, whereas information is the result of processing and organizing data in a meaningful way. Therefore, the correct answer is false.

Stratified sampling is the correct answer because it involves dividing the population into different groups or strata based on certain characteristics, such as age bands in this case. Then, a sample is taken from each stratum in proportion to the population size of that stratum. This ensures that the sample represents the diversity within the population and allows for more accurate analysis and generalization of the results.

Stratified sampling involves dividing the population into different groups or strata based on certain characteristics. In order to conduct stratified sampling, knowledge is needed about each item in the population to accurately classify them into the appropriate strata. This ensures that each stratum is represented in the sample proportionally to its presence in the population, increasing the representativeness of the sample. Therefore, the statement "Knowledge is needed of each item in the population" is true for stratified sampling.

Budgets are a form of tactical plan, even when they do not extend over a one-year financial period.

Management accountants provide information for decision-making but do not make the decisions themselves. A cost accounting system gathers data, not information. Management accounting systems provide some but not all the information needed for strategic and tactical planning. Information should be timely and relevant: it should also be reliable but need not be 100% accurate.

Secondary data refers to data that has been collected by someone else for a different purpose. In this case, option (i) is an example of secondary data because it involves counting the number of invoices issued each week, which is likely data that has been collected by the company for their own internal purposes. Option (iii) is also an example of secondary data because it involves the average wage paid to the company's employees, which is likely data that has been collected by the company for their own payroll purposes.