What is information?

• A. Raw unprocessed facts and figures
• B. Data that has been processed in a way that makes it meaningful for planning or decision making
• C. Data that is inaccurate
• D. A form of financial report

Answer: (B)

Information is data that has been processed and presented in a way that is meaningful for planning or decision making. Raw data are unprocessed facts and figures; they only become information once they are organized, summarized, and interpreted so a manager can act. For example, turning daily sales numbers into a monthly trend, comparing it with the budget, and producing a forecast makes it information you can use to decide on inventory or marketing actions. Inaccurate data aren’t information, and a financial report is a specific form of information, but not the definition of information itself.