MGTA02H3 Chapter Notes - Chapter 8: Income Statement, Financial Statement, Information Revolution
Chapter 8 – Notes
Managing Information
Data
Data: A collection of raw facts and figures
ohas little values on its own – needs to be analyzed
Sales receipts can be used to measure the effect of advertising, sales promotions and price
changes
Information
Information: Data that has been structured or put into context to make it useful
Making comparisons between data
Data observations that are made sense of
Knowledge
Knowledge: The accumulation of understanding and experience, to use information to form
judgements and make decisions
Management Information Systems
MIS: Any system for collecting data that can be used in such a way that is produced information
of use to the managers of businesses
MIS’ do not necessarily need to involve a computer
Purpose is to supply information to the people who need it in a timely fashion
Brings order from disorder
Information Systems and Information Technology
Information System: Any system that allows people to record and store data, to organize data
into a useable form, and then transmit information to the people who need it
Information Technology: Any technology that allows managers to collect, record and organize
data
Carbon and Fibre Information Technology
oRecord: Record info
Data must be written down
find more resources at oneclass.com
find more resources at oneclass.com
oStorage: Store info
Han Dynasty – Chinese invented paper
Johannes Guttenburg – Printing press
oTransmit: Pass info
oAnalysis: Discuss info
oDecision: Make decision
Most information today is printed on a silicon chip; key stroke, computer
Information age: The period since the 1970s when the development of affordable personal
computers, allowed large quantities of data to be assembled, stored, and manipulated by the
average person
Gordon Moore – co-founded Intel, leading maker of microchips
Moore’s Law: The observation that the amount of data that can be recorded, stored, and
analyzed by information technology, doubles every two years
o20th century Information Revolution
oIncreases the ease and speed with which we can record, store, and analyze data
Data Analysis
Data Analysis: Any operation that organizes data into a form that is useful to the user
Ex. Mathematical manipulation, sorting data, etc.
Statistical Analysis: Statistics such as mean, median, range, or standard deviation
Time series Analysis: Sorting data points across different dates or times, from oldest to newest,
to spot direction or trends
Cross-sectional Analysis: Looking at data for a single representative and comparing that result
to the others in the population
Accounting information is the most important and the most commonly used form of data
analysis
Accounting Information
Accounting: The system for collecting, analyzing, and communicating financial information
Accountants: Individuals trained how to collect, organize, and present financial data
Accountants are responsible to make sure transactions are recorded, sorted, and analyzed
Responsibilities:
1. Examine statements to ensure accuracy
2. Ensure statements and record comply with laws and regulations
3. Compute taxes owed, prepare tax returns, ensure prompt payment
4. Organize and maintain financial records
Reports are used by business managers to make informed decisions
Performance reports for owners, the public, and regulatory agencies
find more resources at oneclass.com
find more resources at oneclass.com
1
MGTA02H3 Full Course Notes
Verified Note
1 document
Document Summary
Data: a collection of raw facts and figures: has little values on its own needs to be analyzed. Sales receipts can be used to measure the effect of advertising, sales promotions and price changes. Information: data that has been structured or put into context to make it useful. Data observations that are made sense of. Knowledge: the accumulation of understanding and experience, to use information to form judgements and make decisions. Mis: any system for collecting data that can be used in such a way that is produced information of use to the managers of businesses. Mis" do not necessarily need to involve a computer. Purpose is to supply information to the people who need it in a timely fashion. Information system: any system that allows people to record and store data, to organize data into a useable form, and then transmit information to the people who need it.
