ACCA F1, F2, F5, P5 Informational Levels & Sources in business organizational structure.

Information can be categorized into three levels to reflect the business needs for decision making purpose.





Strategic Level Information	Strategic level information focuses on external environmental factors such as PESTEL factors. Strategic level information is summarized snapshot of business position and performance at any particular point in time. Strategic information is forward looking in nature. Information produced at this stage are forecasts (sales volume, cash flows), PESTEL analysis, risk analysis, major investment and financial planning. It is also arises due to Ad-hoc decision taken by strategic level managers to respond to external factors.
Tactical Level Information	Tactical level information is compiled form internal information in the form of feedbacks (reports and memos) from operational managers and management information system (MIS). It is a historical information used for planning and control. Information produced at this stage are budgets, variance analysis and individuals performance evaluation.
Operational Level Information	Operational level information originates internal in the organization. It arises due to operations of the business such as store ledger cards, creditor ledger and debtors ledger control accounts which arises because of  storing, purchasing and selling goods or services on credit.



List of some external and internal information. (this list is not exhaustive)


External Sources of Information.


1. Internet websites, social networking sites, forums etc.
2. Government publications such as monetary and fiscal policies.
3. Legal rules and regulations in the form of Acts (UK & US) or Ordinances (PK).
4. Press releases such as newspapers, technical magazines.
5. Professional educational training such as ACCA and CAT.
6. Marketing Promotional Materials.
7. Financial statements of other businesses.
8. Outsourcing and Consultancy firms.
9. Correspondence received from suppliers, customers and tax authorities etc.
   
   
   Internal Sources of Information.
   
   
10. Daily books such as sales day book, purchase day book and cashbook.
11. Invoices, goods received notes (GRN), Purchase requisition notes, Authorization Vouchers, Credit notes etc.
12. Reports from management accountants such as variance analysis and performance appraisal feedbacks.
13. other information sources such as attendance and payroll records, title deeds, register of shareholder, risk register and fixed asset register.
14. Senior management forecast on future sales demand, cash flow requirements.
15. Minutes of board meetings for deciding future strategies on new products and markets.
16. Policies, procedures and training manuals of the business to help employees understand their job and business expectations for them.
    
    
    Thank you. Your comments are invaluable for me.
    If you Liked this post, kindly tell to your friends or peers.

 

Tags: ACCA F1, ACCA F2, ACCA F5, ACCA P5, ACCA Books, ACCA Notes