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I face this question after completing chapter 1 of BPP
1. departmental budgets prepared are work of Tactical Level Managers?
2.U gave example in ur lecture that wage rates in computer are data and u try to find out avg wage which is an information.
So can we say the production rates/hr or electricity bills/month are data while total production of last month or total electricity cost for 1 yr are informations.
3. what actually the long term and short term decisions mean. is it long term decisions will affect for a longer period time or taking decision looking onto the longer period future?
1. I am not sure what your question is here. Department budgets are indeed produced at the tactical level because they are short-term plans (usually for the coming twelve months).
2. Information is what is useful for management to help them make decisions. So total production or total electricity would be information (although more useful would likely be some sort of analysis of these total costs).
3. There is no rule as to what is long-term and what is short-term, but long-term planning is planning for a longer period – for example, deciding whether or not to launch a new product which will impact for a longer period. Short-term planning is planning over a short period – for example, the budgets/plans for the next twelve months (as part of implementing the long-term/strategic decisions).
thanks sir john ,i got answer to 1 and 3 question.
related to 2nd question……………so was i right on this that i stated
production rate/hr is a data,
total production last month is an information as we get that thru multiplying the total hours worked last month with production rate/hr.and u said something that is useful for managers is an information.But i actually looked into it on basis of whether its processed or not. is it okay to do that.
Information will also require some form of further processing, but further processing does not automatically make it become information. The accounting system will almost certainly do an element of ‘automatic’ processing.
What really makes it information is when it is extra detail that is useful for management to help them make decisions.ok i understand it well now
so just total of production and electricity or sales doesn’t make it an information , though it is processed but its not that useful unless it been made more clear or we do further analysis of this total cost which would make it more useful or add meaning to that , and then it can be termed as information as it will help the managers to take decisions.
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