Characteristics for Information for Decision Making

question 75

Essay

Characteristics for information for decision making
i. One characteristic of information that is essential in order for the information to be useful for decision making is relevance. What are the other two characteristics?
ii. Frequently there is a conflict between the two characteristics requested in question (i), describe why this conflict exists.
iii. What distinguishes relevant information from irrelevant information?

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Definitions:

Capital Goods

Assets owned by companies for an extended period, instrumental in manufacturing products and providing services, including items like equipment, machinery, and buildings.

Consumer Goods

Products intended for final use by consumers rather than further manufacturing or processing.

Future Growth Rate

An estimate of how fast an economy, company, or investment is expected to grow in the future.

Division of Output

The allocation or distribution of the total goods and services produced among different sectors, markets, or consumers.