Question

The value of information is the difference between the benefits realised from using that information and the costs of producing it. Would you, or any organisation, ever produce information if its expected costs exceeded it benefits? If so, provide some examples. If not, why not?(pls i need a different answer from the textbk answers)

Answer 1

Most of the organisations in most of the situations produce information only if its value exceeds its cost but in the following situations, the organisations may produce information even if its costs exceeds its value which are as follows:

1. As the accruate estimation of value of information and cost of producing information is often difficult, the organisations may produce information that they expect to produce more benefits when compared to costs.

2.Sometimes production of information may be mandated by a government agency or a private organisation like tax reports required by the IRS and disclosure requirements for financial reporting.