ACG 4101 Lecture Notes - Lecture 3: Faithful Representation, Sales Order, Cost Accounting
Document Summary
System a set of two or more interrelated components interacting to achieve a goal. Goal conflict occurs when components act in their own interest without regard for overall goal. Goal congruence occurs when components acting in their own interest contribute towards overall goal. Data are facts that are recorded and stored; insufficient for decision making. Information is processed data used in decision making. Reduce uncertainty, improve decisions, improve planning, improve scheduling. Costs of information time and resources to produce/distribute the information. The capacity of information to make a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct prior expectations. Materiality of information there are no errors or omissions in the description of the phenomenon, and the process used to produce the reported info has been selected and applied with no errors in the process.
