CH 1: Data, Information and Sampling
Compare and contrast financial accounting with cost and management accounting.
Describe the purpose and role of cost and management accounting within an
organisation.
Outline the managerial processes of planning, decision-making and control
Explain the difference between strategic, tactical and operational planning
Distinguish between data and information
Identify and explain the attributes of good information
Explain the limitations of management information in providing guidance for managerial
decision-making
Describe sources of information from within and outside the organisation (including
government statistics, financial press, professional or trade associations, quotations and
price lists)
Explain the uses and limitations of published information/data (including information
from the internet)
Describe the impact of the general economic environment on costs/revenue.[K]
Describe the five characteristics of big data (volume, variety, velocity, value and veracity)
Describe the three main data sources: machine/sensor, transactional and human/social
There are many definitions of the term ‘big data’ but most suggest something like the
following:
'Extremely large collections of data (data sets) that may be analysed to reveal patterns,
trends, and associations, especially relating to human behaviour and interactions.'
In addition, many definitions also state that the data sets are so large that conventional
methods of storing and processing the data will not work.
Main sources of big data can be grouped under the headings of social (human),
machine (sensor) and transactional.
Social (human) – this source is becoming more and more relevant to organisations. This
source includes all social media posts, videos posted etc.
Machine (sensor) – this data comes from what can be measured by the equipment
used.
Transactional – this comes from the transactions which are undertaken by the
organisation. This is perhaps the most traditional of the sources.
The characteristics of big data, known as the 5Vs, are:

Volume - Quantity

Variety - Types

Velocity – Speed

Veracity - Accuracy

Value – Cost-Benefit Analysis
Explain the three types of big data: structured, semi-structured and unstructured
Describe the main uses of big data and data analytics for organisations
These analytical findings can lead to:

Better marketing

Better customer service and relationship management

Increased customer loyalty

Increased competitive strength

Increased operational efficiency

The discovery of new sources of revenue
Explain sampling techniques (random, systematic, stratified, multistage, cluster and
quota)
Choose an appropriate sampling method in a specific situation.[S] (Note: Derivation of
random samples will not be examined)