Question Tag: Information Processing

a) Distinction Between Data and Information:

• Data consists of raw, unprocessed facts and figures, whereas Information refers to data that has been processed in a way that makes it meaningful for planning or decision-making purposes.
  (2 marks)

b) Steps Involved in Converting Data into Information:

• Data Gathering: The first step involves gathering data from both internal and external sources.
• Data Evaluation: In this stage, the collected data is examined and filtered so that irrelevant data is ignored or deleted.
• Data Analysis: The data is compared with a standard or yardstick, such as comparing actual results with budgets.
• Interpretation: This stage involves considering, interpreting, and adding meaning to the data, such as explaining why actual results differ from expected outcomes.
• Distribution: The processed information (processed data) is then distributed to those who require it in the amount and manner they need to perform their jobs.
  (10 marks)

c) Essential Qualities of Information:

• Accuracy: Information must be reliable, with only facts and figures that add up, and assumptions clearly stated.
• Completeness: Information should include everything relevant to the decision being considered while avoiding excessive details.
• Cost-Effectiveness: The cost of obtaining information should not exceed the benefits derived from its use, with efficient collection, analysis, and clear presentation.
• Understandability: Information should be easy to read and understand so that users can act on it effectively.
  (8 marks)