How can the value of the information produced by an accounting information
system be determined?
“The value of information is the benefit produced by the information minus the cost of producing
it. Benefits of information include reduced uncertainty, improved decisions, and improved ability
to plan and schedule activities. The costs include the time and resources spent to produce and
distribute the information. Information costs and benefits can be difficult to quantify, and it is
difficult to determine the value of information before it has been produced and utilized.
Nevertheless, the expected value of information should be calculated as effectively as possible so
that the costs of producing the information do not exceed its benefits.” (Romney, Marshall B.,
Steinbart, P. J. Pg. 4, 01/2014).
From your course textbook, Accounting Information Systems, refer to the table
“Characteristics of Useful Information” in the chapter “Accounting Information
Systems: An Overview.” To what extent can all the characteristics of useful
information listed in the table be simultaneously met? What are the reasons the
characteristics might not be interrelated?
