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). can i get a different example from what you have online and textbk pls. something different from the tax reports required by the IRS and disclosure requirements for financial reporting.

Answer 1

Most organizations produce information only if the value exceeds its cost. However, there are two situations where information may be produced even if its cost exceeds its value which are given as follows:-

a.) It is often difficult to estimate accurately the value of information and the cost of producing it. Therefore, organizations may produce information that they expect will produce benefits in excess of its costs, but due to inaccurate estimate the actual cost exceeds its value.

b.) Sometimes production of information may be mandated by either a government agency or a private organization. Examples include the tax reports required by the IRS and disclosure requirements for financial reporting.