Chapter 1 Flashcards
(30 cards)
Section 1
Define Data
Raw unprocessed figures that have been collected about an activity or procedure
Define Information
Processed data that is now in a form that makes it valuable to the user for example the percentage increase in daily production
Define Qualitative Data
Data that can’t be measured
Define Quantitative Data
Data that can be measured
Define Discrete Data
Values / observations are distinct and separate, i.e. they can be counted
(1,2,3,….). Examples might include the number of kittens in a litter;
Define Continuous Data
Values / observations belonging to it may take on any value within a
finite or infinite interval. You can count, order and measure continuous data. For
example, height, weight
Define Primary Data
Data that has been gathered for the specific purpose by yourself
(interviews, questionnaires etc)
Define Secondary Data
Data gathered by someone else for another purpose that you are
using for your purpose
What are the attributes of good information
ACCURATE
Accurate
Complete
Cost beneficial
Understandable
Relevant
Authoritative
Timely
Easy to use
What are the two source types of data?
1) Internal
e.g.
2) External
e.g.
In terms of decisions how are organisations split?
Strategic
–decisions concerned with the long-term future of the organisation, its mix of
products and the markets it trades in
Managerial/Tactical
–decisions concerned with medium-term issues such as individual
products, customers and staffing
Operational
–decisions concerned with day-to-day activities affecting production and customer
service
Information requirements SMO: Time Horizon
S: Longer term
M: Short and Medium Term
O: Short Term
Information requirements SMO: Breadth Covered
S: Wide Focus
M: Fairly Wide
O: Narrow Focus
Information requirements SMO: Level of Detail
S: Low Level
M: Summarised
O: High Level
Information requirements SMO: Level of Certainty
S: Vague/uncertain
M: Quite Specific
O: Specific/Certain
Information requirements SMO: Source of Data
S: External & Internal
M: Mostly Internal
O: Internal
Information requirements SMO: Type of Info
S: Qualitative/quantitative, feed-forward
M: Mostly Quantitative
O: Quantitative, Feedback
CGMA Background
Information requirements SMO: Examples
S: Info on products (competitor pricing/product spec), and markets (market share, technology changes)
M: Variance analysis, Cash flow budgets, Staff utilisation reports
O: Daily inventory, movement reports, Weekly sales listing
What are the basic needs of the accounting profession
PCPC
Professionalism
Credibility
Provide HQ services
Confidence
CGMA Code of Ethics Background
CGMA Code of Ethics is based on the IESBA Code of Ethics for Professional Accountants
IESBA is part of IFAC, which represents the major accountancy bodies in the world
It emphasises the requirement for an accountant to act in the public interest
-act in interests of society as a whole as well as the interests of the accountant or his employer
What are the fundamental principles of the code
CIPOP
Confidentiality
Integrity
Professional Behavior
Objectivity
Professional Competence and Due Care
