Managament accounting

2.10 Types of information

Information within an organisation can be analysed into the three levels assumed in Anthony's hierarchy: strategic; tactical; and operational.

Strategic information is used by senior managers to plan the objectives of their organisation, and to assess whether the objectives are being met in practice. Such information includes overall profitability, the profitability of different segments of the business and capital equipment needs.

Strategic information therefore has the following features.  It is derived from both internal and external sources.  It is summarised at a high level.  It is relevant to the long term.  It deals with the whole organisation (although it might go into some detail).  It is often prepared on an 'ad hoc' basis.  It is both quantitative and qualitative.  It cannot provide complete certainty, given that the future cannot be predicted.