CHARACTERISTICS OF USEFUL INFORMATION

In order to be useful in decision making, information provided must possess the

following criteria:

 Relevant
Information will be considered as relevant if it may influence the decision that
is about to be made. Relevant information includes the information that is
different among various alternatives and it is concerning the future.

Information which is pertinent/related to a particular decision

 Accurate
The useful information must be correct and free from any error and
misstatement. Inaccurate information will lead to wrong judgement and wrong
decision made.

 Reliable
In order to be useful, information must be obtained from a reliable source and
this information is prepared objectively and free from any bias.
 Timely
Information must be obtained when they are needed to be used (on time), i.e.
before the decision is made. If the information is only available after the
decision is made, then, such information is considered not useful as it does
not help decision making.

 Understandable
Information would be useful if it can be easily read and understood by the
decision maker. If the information attained is understood wrongly by a
decision maker, therefore it will be inappropriate to use such information
because it will lead to wrong decision made.

 Cost-effective
Information can be useful if it requires less cost to obtain. If the cost to obtain
the information is higher than the benefits gained from the decision made,
therefore, the information is not useful as it will result in reduced profit from
the decision made.