ASSIGNMENT #1 Sarmiento, Jenny Lea T.

IT 3- C

1. The role of information within business Proper use and dissemination of information within and even outside the business is important as it primarily affects business dealings and transactions. One can know how certain factors can affect some business policies and its day-to-day activities by processing and transforming this data into useful information. Accurate and timely information serves as a guide for managers in making decisions. For example, as a Financial Accountant, one can understand the profitability of the business by looking out on its Revenue and Costs account generated within a specific period; as a Cost Accountant, one can properly make use of all the information to lower the cost of supporting and managing the business activities efficiently and effectively; and as a Manager or any high ranked official, one can analyze how different pricing methods can either make the sales go up or down. This all just indicates how vital information is for a business in making decisions. Moreover, it also acts as a mediator between the key figures of the organization as it helps them to communicate with each other, thus giving them ideas of improving their work and performance.

2. Managements use of information in terms of general ledger and budgeting As business and society become more complex, information helps decision-makers make informed choices regarding the allocation of their limited resources under their control. With this, management uses information recorded in the accounting books such as journals and ledgers to keep track of its transactions and to properly analyze the significance of these dealings in terms of money. As a financial analyst evaluating the entitys profitability, solvency and liquidity, financial statements from journals and ledgers is their very important tool, the same goes for a management consultant who is concerned with the products competitiveness, cost control and customer service. Information in terms of general ledger and budgeting helps managers to carefully study their financing, investing and operating activities. Without this information, no business could have operated for long.

3. Human Information Processing Human Information Processing is how the brain processes external stimuli using its five senses to receive, store, integrate, retrieve, and use limited number of information to make reactions or responses. Humans endeavor to go beyond these limitations gave birth to computers or more specifically, the Information Systems. Theres no argument that it is really the human brain that makes those technology possible.