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48 Cards in this Set
- Front
- Back
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System |
A set of two or more interrelated components that interact to achieve a goal. |
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Goal Conflict |
Occurs when a subsytem's goals are inconsistent with the goals of another subsytem or with the system as a whole |
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Goal Congruence |
Occurs when a subsystem achieve its goals while contributing to the organization's overall goal |
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Data |
Facts that are collected, recorded, stored and processed by an information system |
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Information |
Data that have been organised and processed to provide meaning and improve the decision-making process. |
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What are characteristics of useful information |
Relevant Reliable Complete Timely Understandable Verifiable Accessible |
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Relevant |
A characteristic of a useful information wherein it reduces uncertainty, improves decision-making, or confirms or corrects prior expectations |
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Reliable |
A characteristic of a useful information wherein it is free from error or bias; accurately represents organization events or activities |
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Complete |
A characteristic of a useful information wherein it does not omit important aspects of the events or activities it measures |
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Timely |
A characteristic of a useful information wherein it is provided in time for decision makers to make decisions |
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Understandable |
A characteristic of a useful information wherein it is presented in a useful and intelligible format |
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Verifiable |
A characteristic of a useful information wherein two independent, knowledgeable people produce the same information |
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Accessible |
A characteristic of a useful information wherein it is available to users when they need it and in a format they can use |
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Cost |
What is the constraint to produce accounting information? |
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Internal control |
These are methods that safeguard assets and data |
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Information overload |
Occurs when the limits to the amount of information that human mind can absorb are passed, resulting in a decline in decision-making quality and an increase in the cost of providing that information |
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Information technology |
This is use by information system designers to help decision makes more effectively filter and condense information |
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Value of information |
Benefit produced by information minus the cost of producing it |
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Business process |
A set of related, coordinated, and structured activities and task that are performed by a person, a computer, or a machine, and that help accomplish a specific organization goal |
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Acquire capital Acquire building and equipment Hire and train employees Acquire inventory Advertising and marketing Sell merchandise Collect payment from customers Pay employees Pay taxes Pay vendors |
Give example of businesses processes |
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Transaction |
An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization |
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Transaction processing |
Process that begins with capturing transaction data and ends with informational output |
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Revenue cycle Expenditure cycle Conversion cycle Human Resources/payroll cycle Financing cycle |
What are the five major business process or transaction cycles? |
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Revenue Cycle |
A transaction cycle where goods and services are sold for cash or a future promise to receive cash |
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Expenditure cycle |
A transaction cycle where companies purchase inventory for resale or raw materials to use in producing products in exchange for cash or a future promise to pay cash |
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Conversion cycle |
A transaction cycle where raw materials are transformed into finished goods |
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Human resouces/payroll cycle |
A transaction cycle where employees are hired, trained, compensated, evaluated, promoted, and terminated |
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Financing cycle |
A transaction cycle where companies sell shares in the company to investors and borrow money, and where investors are paid dividends and interest is paid on loans |
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General ledger and reporting system |
These are used to generate information for both management and external parties |
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People Procedures and Instructions Data Software Information technology infrastructure Internal controls and safety measures |
Six components of AIS |
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Collect and store data Transform data into information Provide adequate controls |
Three important business functions that AIS fulfill through its components |
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Improving the quality and reducing the costs of products or services Inproving efficiency Sharing knowledge Improving the efficiency and effectiveness of its supply chain Improving the internal control structure Improving decision making |
How an AIS can add value to an organization |
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Inbound logistics Operations activities Outbound logistics Marketing and sales activities Service activities |
Five primary activities of value chain |
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Inbound logistics |
This consists of receiving, storing, and distributing the materials an organization uses to create the services and products it sells. |
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Operations activities |
This transform inputs into final products or services |
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Outbound logistics |
These are activities that distribute finished products or services to customers |
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Marketing and sales activities |
These are activities that help customers buy the organization’s products or services |
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Service activities |
These provide post-sale support to customers |
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Firm infrastructure Human resource activities Technology activities Purchasing activities |
Support activities of the five primary activities of value chain |
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Firm infrastructure |
This is the accounting, finance, legal, and general administration activities that allow an organization to function. The AIS is part of this |
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Human resources activities |
These are activities that include recruiting, hiring, training, and compensating employees. |
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Technology activities |
These are activities that improve a product or service |
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Purchasing activities |
These are activities that procure raw materials, supplies, machinery, and the buildings used to carry out the primary activities |
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Supply chain |
An extended system that includes an organization’s value chain as well as its suppliers, distributors, and customers. |
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Just-In-time inventory management system |
This reduces cost and minimizes the capital tied up in inventory |
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AIS |
The brain of accounting |
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Accounting |
This is a data identification, collection, and storage process as well as an information development, measurement, and communication process. |
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AIS |
This collects, records, stores, and processes accounting and other data to produce information for decision makers |
