MODULE : AIN1501
,AIN1501 EXAM
SUMMARY
NOTES
Complete summary notes on all
topics covered in the Study Guide.
,AIN1501 - Summary
TOPIC 1
1. Define Information
Information is a set of facts or data organised and processed in such a way that it
provides additional value beyond that of the facts themselves. Information is derived
from data or raw facts that represent real-world elements. Information is data that
have been processed in such a way as to be meaningful to the person who receives
it. This information provides knowledge that leads the user to make decisions.
Activity -> Data -> Information -> Knowledge -> Decisions
2. Define Data
Data are the raw material available for processing into information. Data consist of
numbers, letters, audio and video data and relate to facts, events and transactions.
3. Characteristics of Information
Information should be without any errors. Inaccurate data
Accurate entered into a process will provide inaccurate information.
Information should be checked to ensure correctness.
Information should be easily available to users in order to meet
Accessible
their needs.
Information needs to include the latest possible information
Up-to-date information
and recording time of data should be minimised.
Some users may need details of all events while others need a
Detail information summary. Information should contain all the important facts,
but no more than are necessary.
Flexibility Information is flexible if it is usable for more than one purpose
Relevance of information Information should be relevant to the needs of the users.
The value of information should always be balanced with the
Cost- effectiveness
cost of producing the information.
Information is reliable if one can depend on it. Reliability
Reliability
depends on the source of information. A rumour is not reliable.
Timely Information should be delivered when it is needed.
1
, AIN1501 - Summary
Information should not be overly complex and should be
supplied in the required format. Too much information or
Format of information
information in the wrong format leads to difficulty in
determining what is important.
4. Users and uses – Internal and external
4.1. Internal
4.1.1. Management: To coordinate the activities of the organisation, to do future
planning, to make important decisions based on the information, to measure
performance and control activities. Managers need internal information
about their budgets and products in order to carry out their financial planning
and make informed decisions. They also need external forecasting
information on the economy, as well as on interest and exchange rates.
4.1.2. Financial managers: Financial managers need information on the financial
performance of the organisation in order to make decisions on cash flow and
financing. Hence, management financial statements are an internal source
of information. Financial managers also need external information on
possible sources of finance in order to make financing decisions.
4.1.3. Production managers: Internal information on sales quantities and sales
forecasting is needed to control and plan the production process. Production
managers use external information on new technology and production
processes to improve the performance of the department.
4.1.4. Staff managers: Staff managers use internal information on qualifications
needed and salary levels. External information on employees and their
qualifications should also be available to place employees in appropriate
jobs.
4.1.5. Marketing managers: Internal information needed relates to products, target
markets and prices in order to make decisions on possible promotions and
advertising methods. External information on the different media to use for
advertising and their tariffs is needed, as well as on general market
conditions, the economy and competitors.
4.1.6. Sales managers: Internal information is needed on production costs and all
overhead costs in order to make decisions on sales prices. External
information on clients and their spending patterns is used to approach the
clients and determine opening times for retail outlets.
4.1.7. Purchase manager: Internal information is necessary on the quantity of the
various products or raw material needed by the production department. The
2
,AIN1501 EXAM
SUMMARY
NOTES
Complete summary notes on all
topics covered in the Study Guide.
,AIN1501 - Summary
TOPIC 1
1. Define Information
Information is a set of facts or data organised and processed in such a way that it
provides additional value beyond that of the facts themselves. Information is derived
from data or raw facts that represent real-world elements. Information is data that
have been processed in such a way as to be meaningful to the person who receives
it. This information provides knowledge that leads the user to make decisions.
Activity -> Data -> Information -> Knowledge -> Decisions
2. Define Data
Data are the raw material available for processing into information. Data consist of
numbers, letters, audio and video data and relate to facts, events and transactions.
3. Characteristics of Information
Information should be without any errors. Inaccurate data
Accurate entered into a process will provide inaccurate information.
Information should be checked to ensure correctness.
Information should be easily available to users in order to meet
Accessible
their needs.
Information needs to include the latest possible information
Up-to-date information
and recording time of data should be minimised.
Some users may need details of all events while others need a
Detail information summary. Information should contain all the important facts,
but no more than are necessary.
Flexibility Information is flexible if it is usable for more than one purpose
Relevance of information Information should be relevant to the needs of the users.
The value of information should always be balanced with the
Cost- effectiveness
cost of producing the information.
Information is reliable if one can depend on it. Reliability
Reliability
depends on the source of information. A rumour is not reliable.
Timely Information should be delivered when it is needed.
1
, AIN1501 - Summary
Information should not be overly complex and should be
supplied in the required format. Too much information or
Format of information
information in the wrong format leads to difficulty in
determining what is important.
4. Users and uses – Internal and external
4.1. Internal
4.1.1. Management: To coordinate the activities of the organisation, to do future
planning, to make important decisions based on the information, to measure
performance and control activities. Managers need internal information
about their budgets and products in order to carry out their financial planning
and make informed decisions. They also need external forecasting
information on the economy, as well as on interest and exchange rates.
4.1.2. Financial managers: Financial managers need information on the financial
performance of the organisation in order to make decisions on cash flow and
financing. Hence, management financial statements are an internal source
of information. Financial managers also need external information on
possible sources of finance in order to make financing decisions.
4.1.3. Production managers: Internal information on sales quantities and sales
forecasting is needed to control and plan the production process. Production
managers use external information on new technology and production
processes to improve the performance of the department.
4.1.4. Staff managers: Staff managers use internal information on qualifications
needed and salary levels. External information on employees and their
qualifications should also be available to place employees in appropriate
jobs.
4.1.5. Marketing managers: Internal information needed relates to products, target
markets and prices in order to make decisions on possible promotions and
advertising methods. External information on the different media to use for
advertising and their tariffs is needed, as well as on general market
conditions, the economy and competitors.
4.1.6. Sales managers: Internal information is needed on production costs and all
overhead costs in order to make decisions on sales prices. External
information on clients and their spending patterns is used to approach the
clients and determine opening times for retail outlets.
4.1.7. Purchase manager: Internal information is necessary on the quantity of the
various products or raw material needed by the production department. The
2
