Definition from Handouts Flashcards
Information System
is a set of people, procedures, and resources that collects, transforms, and disseminates information in an organization.
System Concept
a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.
System’s interacting components
1- Input
2- Processing
3- output
Role of Information System
- support of business operations
- support of managerial decision making.
- support of strategic competitive advantages
Types of Information Systems
- Managemen IS:
- Transaction Processing system
- Process Control System
- Information reporting systems.
Management Information System
support the decision making needs of strategic management.
Transaction Processing System
in batch processing (accumulated over a period of time an processed periodically) or in Real time processing (data processed immediately after a transaction occurs.
Process Control Systems
monitors and control physical processes.
Information Reporting System
provide information in the form of reports and displays to managers.
Cost system Design
Cost systems should have a decision focus
- different cost information is used for different purposes
- Cost information for managerial purposes must meet the cost-benefit test.
The Basic Cost Flow Model
Beginning Balance + Transfer in- Transfer Out= ending Balance
