Module 1 Flashcards
It is a set of two or more interrelated components that interact to achieve a goal.
System
It occurs when a subsystem’s goals are inconsistent with the goals of another subsystem or with the system as a whole.
Goal Conflict
It occurs when a subsystem achieves its goals while contributing to the organization’s overall goal.
Goal Congruence
i. These are facts stored in the system.
ii. When facts becomes meaningful.
Data and Information
It occurs when those limits are passed, resulting in a decline in decision-making quality and an increase in the cost of providing that information.
Information overload
It is what Information designers use to help decision makers more effectively filter and condense information.
Information Technology
Information is valuable when the benefits exceed the costs of gathering, maintaining, and storing the data.
Value of Information
What are the 7 general characteristics that make information useful?
Relevant, Reliable, Complete, Timely, Understable, Verifiable, and Accessible
Business organizations use business process to get things done. These processes are a set of structured activities that are performed by people, machines, or both to achieve a specific goal. Key decisions and information needed often come from these business processes.
Organizational Decisions and Information Needed
An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization.
Transaction
The process that begins with capturing transaction data and ends with informational output, such as the financial statements.
Transaction Processing
Business organizations conduct business transactions between internal and external stakeholders. The AIS captures the flow of information between these users for the various business transactions.
Transaction Information Between Internal and External Parties in an AIS
These are employees in the organization
Internal stakeholders
These are trading partners such as customers and vendors as well as other external organizations such as Banks and Government.
External Stakeholders
Business Processes/ Transaction Cycles
Revenue, Expenditure, Production or Conversion, Human resources/payroll, & financing cycle.
This is where goods and services are sold for cash or a future promise to receive cash.
Revenue Cycle
This is 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.
Expenditure Cycle
This is where raw materials are transformed into finished goods.
Production or Conversion Cycle
This is where employees are hired, trained, compensated, evaluated, promoted, and terminated.
Human resources/Payroll cycle
This is where companies sell shares in the company to investors and borrow money, and where investors are paid dividends and interest is paid on loans.
Financing cycle
These are transactions between the business organization and external parties fundamentally involve a “give-get” exchange.
Basic business processes
It is the intelligence- the information providing vehicle of that language (Language of Business) . It can be manual or computerized.
Accounting Information System (AIS)
How does an AIS Add Value?
A well thought out AIS can add value through effective and efficient decisions. *having effective decisions means; quality decisions and reducing costs of decision making.
It is the overall goal the organization hopes to achieve.
Strategy
It uses data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities.
Predictive Analysis
It shows how the different activities within an organization provide value to the customer. It links together the primary and support activities in a business.
AIS in the Value Chain
What are the Primary and Support Activities
Primary Activities provide direct value to the customer while Support Activities enable primary activities to be efficient and effective.
It consists of receiving, storing, and distributing the materials an organization uses to create the services and products it sells.
Inbound Logistics
It transform inputs into final products or services.
Operations
It distribute finished products or services to customers.
Outbound Logistics
It helps customers buy the organization’s products or services.
Marketing and Sales
It provides post-sale support to customers.
Service
It is the accounting, finance, legal, and general administration activities that allow an organization to function.
Firm Infrastructure
It includes recruiting, hiring, training, and compensating employees.
Human resources
It improve a product or service.
Technology
Procure raw materials, supplies, machinery, and the buildings used to carry out the primary activities.
Purchasing
