Planning, Control and Operating
Information:
Definition and Explanation:
This type of Information can be categorized according to the kind of use that is made of it. This will help the organization to define the level of detail that is required.
Planning Information:
This is information needed to help in the information of plans and the consideration of alternative courses of action. It will usually be forward looking and subject to some degree of uncertainty. Planning information will include forecast and summaries of past data, and may include qualitative information as well as quantitative information.
Control Information:
Control information provides a comparison between actual results and the objectives that have been previously set. Exception report is often used for control information with management's attention being drawn to the information only when problems occur.
Operating Information:
Operating information
is needed for the day - to day running of the organization. Detailed of products delivered, for example are necessary for the production of an invoice.
Characteristics:
Characteristics of the above type of information can be compared as following:
| |
Planning Information |
Control Information |
| Coverage |
Not segregated by function of department. Go beyond organizational division. |
Follows organization divisions. Related to specific functions, departments and managers. |
| Time Scale |
Cover relatively long time periods and seeks to show trends. |
Covers short time periods, shifts, days, weeks and months. |
| Amount of Detail |
patterns and trends more important than fine detail particularly for long range planning. |
Detail and precision important but trends also of importance. |
| Orientation |
Objective is to provide insight into the future. |
Shows past results and activities and relates these to targets, standards and budgets. |
Examples:
Examples of planning and control information are:
| Planning Information |
Control Information |
| Forecasting |
Cost variance report |
| Corporate planning |
Credit control information |
| Investment appraisal |
Working capital statements |
| Budget models |
Current sales trends |
| Market research |
Overtime and downtime statistics |
|
