SECTION 1 ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW Learning Objectives: 1 ) Distinguish between info and data, discuss you will of valuable information, and explain how to determine the importance of information. installment payments on your Explain the decisions a business makes plus the information required to make them. several. Identify the info that passes between external and internal parties and an VOLIGE. 4. Identify the major business processes within most companies. 5. Explain what an accounting information system (AIS) is usually and explain its fundamental functions. 6. Discuss how an AIS can add worth to an organization. 7. Explain how a great AIS and company strategy impact each other. almost 8. Explain the role an AIS takes on in a business value cycle.
Learning Goal One
Separate data and information, talk about the characteristics of useful data, and describe how to determine the value of data.
Systems, Info, and Info
A method is a group of two or more related components that interact to obtain a goal Systems are almost always made up of smaller subsystems Each subsystem is designed to attain one or more company goals.
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If the Systems Strategy is used in systems creation, changes in subsystems cannot be produced without considering the effect on other subsystems as well as the system in general. Goal Discord occurs every time a decision or action of your subsystem is definitely inconsistent with another subsystem or the program s a whole. Goal Convenance is attained when a subsystem achieves the goals although contributing to the organization's general goal The systems concept also encourages Integration, which can be eliminating identical recording, storage, reporting, and also other processing activities in an corporation.
Data are facts that are accumulated, recorded, stored, and refined by an info system Several kinds of data have to be collected in businesses, just like: 1 . Info about the activities that take place 2 . The resources affected by the activities 3. The people whom participate in the activity
Data is data that have been organized and highly processed to provide meaning to a customer. There are limits to the amount of information the human mind can easily effectively absorb and procedure. Information Excess occurs when those limits are passed. When you get more information than you may effectively assimilate, you suffer from information overload. вЂў Case in point: Final exams week! Once you've come to the excess point, the quality of decisions diminishes while the costs of producing the knowledge increases. The importance of information is the benefit created by the information without the cost of making it. Among the value of information is provided on page your five for the 7-Eleven retailers in The japanese. Each shop uses information for: 1 ) Keeping track of 3 of the, 000 items sold in every store and determining what products will be moving, for what moments of the day, and under what weather conditions.
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installment payments on your Keeping track of consumers (what and when they buy). If their ideal customers will be single men, for example , the store makes sure they have the fresh grain dishes that they purchase on their lunch hour including the end from the workday. three or more. Ordering casse-cro?te and grain dishes via suppliers immediately. Orders are put and stuffed three times per day so stores can have always fresh food. Because food purchases take as much as 12 hours to prepare, 7-Eleven allows its suppliers to access sales data within their computers for them to forecast demand. 4. Coordinating deliveries with suppliers. This allows the stores to minimize the number of deliveries from 34 to 12 a day, leading to less paperwork receiving period. 5. Organizing a color graphic screen that indicates which shop areas lead the most to sales and profits. Stand 1-1 on page 4 provides the seven features that make details useful and meaningful intended for decision making. 1 ) Relevant installment payments on your Reliable three or more. Complete some. Timely five....
References: Utilized: 1 . Michael jordan E. Assurer and Victor E. Millar, " How Information Gives You Competitive AdvantageвЂќ Harvard Business Review, (JulyAugust 1985), pp. 149-160. installment payments on your Michael E. Porter, " What Is Approach? вЂќ Harvard Business Review (November-December 1996), pp. 61-78. 3. Assertion of Financial Accounting Concepts #2 on the Quality of Information, which is often downloaded via: http://www.fasb.org/pdf/aop_CON2.pdf Multiple Choice Answer B C A M C N Multiple Decision Number Multiple Choice Solution
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