IS 414 CH. 1 (VOCAB)

Question 1

System

Answer 1

Two or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system

Question 2

Goal conflict

Answer 2

When a subsystem’s goals are inconsistent with the goals of another subsystem or the system as a whole

Question 3

Goal congruence

Answer 3

When a subsystem achieves its goals while contributing to the organization’s overall goal

Question 4

Data

Answer 4

Facts that are collected, recorded, stored, and processed by a system

Question 5

Information

Answer 5

Data that have been organized and processed to provide meaning and improve decision-making

Question 6

Information overload

Answer 6

Exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision-making quality and an increase in the cost of providing information

Question 7

Information technology (IT)

Answer 7

The computers and other electronic devices used to store, retrieve, transmit, and manipulate data

Question 8

Value of information

Answer 8

The benefit provided by information less the cost of producing it

Question 9

Business process

Answer 9

A set of related, coordinated, and structured activities and tasks, performed by a person, a computer, or a machine that help accomplish a specific organizational goal

Question 10

Transaction

Answer 10

An agreement between two entities to exchange goods or services; any other event that can be measured in economic terms by an organization

Question 11

Transaction processing

Answer 11

Process of capturing transaction data, processing it, storing it for later use, and producing information output

Question 12

Give-get exchange

Answer 12

Transactions that happen a great many times, such as giving up cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor

Question 13

Business processes or transaction cycles

Answer 13

The major give-get exchanges that occur frequently in most companies

Question 14

Revenue cycle

Answer 14

Activities associated with selling goods and services in exchange for cash or a future promise to receive cash

Question 15

Expenditure cycle

Answer 15

Activities associated with purchasing inventory for resale or raw materials in exchange for cash or a future promise to pay cash

Question 16

Production or conversion cycle

Answer 16

Activities associated with using labor, raw materials, and equipment to produce finished goods

Question 17

Human resources/payroll cycle

Answer 17

Activities associated with hiring, training, compensating, evaluating, promoting, and terminating employees

Question 18

Financing cycle

Answer 18

Activities associated with raising money by selling shares in the company to investors and borrowing money as well as paying dividends and interest

Question 19

General ledger and reporting system

Answer 19

Information-processing operations involved in updating the general ledger and preparing reports for both management and external parties

Question 20

Accounting information systems

Answer 20

A system that collects, records, stores, and processes data to produce information for decision makers. It includes people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures

Question 21

Predictive analysis

Answer 21

The use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities

Question 22

Value chain

Answer 22

Linking together all the primary and support activities in a business. Value is added as a product passes through the chain

Question 23

Primary activities

Answer 23

Value chain activities that produce, market, and deliver products and services to customers and provide post-delivery service and support

Question 24

Support activities

Answer 24

Value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently and effectively

Question 25

Supply chain

Answer 25

An extended system that includes an organization’s value chain as well as its suppliers, distributors, and customers