Which of the following is NOT an attribute of good information?

Study for the AAT Level 3 Management Accounting Techniques Test. Review concepts and apply knowledge with multiple choice questions. Get ready for your exam!

Multiple Choice

Which of the following is NOT an attribute of good information?

Explanation:
What makes information useful for decision making is its quality: it should be accurate so you’re not acting on false data, and complete so you have all the necessary details. It also helps if the information is cost-beneficial—that is, the benefits you gain from using it exceed the costs of gathering and processing it. Confidentiality, on the other hand, concerns protecting sensitive data from unauthorized access. It’s a security requirement, not a measure of the information’s quality. You can have highly accurate and complete information that is confidential, or confidential information that isn’t particularly useful. But the security aspect does not define how good the information itself is.

What makes information useful for decision making is its quality: it should be accurate so you’re not acting on false data, and complete so you have all the necessary details. It also helps if the information is cost-beneficial—that is, the benefits you gain from using it exceed the costs of gathering and processing it. Confidentiality, on the other hand, concerns protecting sensitive data from unauthorized access. It’s a security requirement, not a measure of the information’s quality. You can have highly accurate and complete information that is confidential, or confidential information that isn’t particularly useful. But the security aspect does not define how good the information itself is.

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