ACCA F2 revision notes Section A Part 1

Distinguish between data and information

Data is numbers and words which cannot be used to make a decision or understand something

E.g.  5, 6, 8, John, Akshay, Ali, age

Information is processed data used to make a decision

Ages

John is 5 years old, Akshay is 6 years old and Ali is 8 years old

Attributes of good information

This acronym is used in most of the books in the world (ACCURATE)

Accurate

Complete

Cost effective

Reliable

Accessible          

Timely

Easy to use

Managerial processes

Planning

Decision making

Control

Different planning

Strategic planning

• Long term planning

Tactical planning

• Medium term planning

Operational planning

• Short term term planning

Different centers

Cost center

Cost center is a center for which only costs are recorded

Profit

Profit center is a center for which both costs and revenues are recorded

Different centers

Revenue center

Revenue center is a center for which only revenues are recorded

Investment center is a center for which profits and proprietor’s capital are recorded