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INTRODUCTION TO MANAGEMENT INFORMATION

INTRODUCTION TO MANAGEMENT INFORMATION


LEARNING OBJECTIVE

  1. PURPOSE OF MANAGEMENT INFORMATION
  2. DATA AND INFORMATION
  3. THE FEATURES OF EFFECTIVE MANAGEMENT INFORMATION
  4. THE SOURCE AND CATEGORIES OF INFORMATION
  5. MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING
  6. RESPONSIBILITY CENTRES

1.PURPOSE OF MANAGEMENT INFORMATION

Management information is used by managers to:

Plan the future of the business. For example, future cash flows and whether borrowing will need to be arranged; whether more employees need to be recruited.

Control the progress of the business. For example whether budgets set in planning stage will be met.

Decision making. For example, what to process or which branch to close.

Obviously, different managers will require different management information for their decision making.

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