The Costs of Obtaining Good Quality Information

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  • Created by: NTipper99
  • Created on: 04-06-17 20:03

The Costs of Obtaining Good Quality Information

Information is never free, since there is always an associated cost of collecting it in the first place and it is important that the benefits outweight the costs of collecting the data in the first place.

Usually the information provided by a system will do some of the following:

  • reduce costs
  • eliminate losses
  • reduce wastage
  • use resources more efficiently
  • provide better management information to aid more accurate decision making

Costs associated witht the collection of data include:

  • costs of employing an expert to design data collection forms
  • the setting up of questionnaires to collect data
  • the production of on-line forms to collect data from customers
  • the travelling costs and other expenses involved in people performing interviews
  • the costs of staff employed to work through documents to collect the information
  • the costs for specialist staff to collect data from other systems
  • the costs of buying information from a third party

Direct data is data that is collected by the organisation and indirect data is data that has been collected from a third party and the organisation has to buy it from them.

The costs associated with data entry

The costs associated with data entry can be divided into:

  • Human resource costs - the costs of any staff performing data entry, the costs of training these staff, the costs of any specialist staff needed for programming etc
  • Time costs - the entry of data, especially using keyboards, takes time. This can slow downthe whole process from collecting…

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