ACCA MA · Chapter 1 · Question 10 of 10
Which of the following statements about the cost and value of information is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Information should be produced only if the benefit of having it is expected to be greater than the cost of obtaining it
Explanation
The value of information comes from the better decisions it allows managers to make. It is worth producing only if this benefit is greater than the cost of collecting, processing and communicating it. Accuracy alone does not justify the cost, and the cost of producing information does not measure its value.
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