Ch 1 Flashcards
Set of interrelated parts that perform one or more processes to accomplish specific objectives
System
Consists of: objectives, interrelated parts, processes, and outputs. Inputs are generally economic events and the operational model of an accounting system is critically involved with the user of information
Accounting Information System
Primarily concerned with producing outputs for external users
Financial Accounting Information Systems
Primarily concerned with producing outputs for INTERNAL users using inputs and processes needed to satisfy management objectives
Cost Management Accounting Information Systems
Cost Mgt tries to satisfy three broad objectives for fin and acc mgt:
1 - Costing of products, services, & other objects of interest
2 - Planning and Control
3 - Decision Making
Product Costs include
Materials, Labor, and Overhead
Cost Mgt subsystem designed to assign costs to individual products and services and other objects as specified by management
Cost Acct Information System
Cost Mgt subsystem designed to provide accurate and timely feedback concerning performance of managers
Operational Control Information System
Vastly improved transportation and communications have led to a global market for many manufacturing and service firms. This global focus highlights the need for cost information to reduce costs, improve productivity, and assessing product-line profitability
Global Competition
Service Sector comprises of approximately 3/4 of the US economy. Deregulation of many services has increased competition in the service industry
Growth of the service Industry
Automation and integration increase the need for timely, detailed information
Advances in information technology
Objective of providing an integrated system capability to run all the operations of the company and provide access to real time data
Enterprise Resource Planning (ERP) software
PCs, online analytic programs, and decision support systems (DDS)
Tools
External data sets and integrate the analysis with an organization’s internal data sets
Business Analytics
Any form of business using information and communications technology
Electronic Commerce
