Module 1

Question 1

Define 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

Define Goal Conflict

Answer 2

When a subsystem goal in inconsistent with the goals of another subsystem or the system as a whole

Question 3

Define Goal Congruence

Answer 3

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

Question 4

Define Data

Answer 4

facts that are collected, recorded, stored and processed by an information system

Question 5

Define Information

Answer 5

Data that has been organised and processed to provide meaning and improve decision making

Question 6

Define Information Overload

Answer 6

Exceeding the amount of information the 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

Define Information Technology

Answer 7

Computers and other electronic devices used to store, retrieve, transmit and manipulate data.

Question 8

Evaluate Value of Information

Answer 8

The benefit provided by information less the cost of producing it.

Question 9

Define Business Process

Answer 9

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

Question 10

7 Characteristics of Useful Information

Answer 10

Relevant
Reliable
Complete
Timely
Understandable
Verifiable
Accessible

Question 11

Parties Interacting w AIS

Answer 11

Vendors
Investors
Creditors
Banks
Customers
Employees
Management
Government Agencies

Question 12

Major Activities in Transaction Cycle

Answer 12

Revenue
Expenditure
Human Resource/ Payroll
Production
Financing

Question 13

Define Accounting Information System

Answer 13

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 14

6 Components of an AIS

Answer 14

People who use it
Procedures used to collect, process & store data
Data about organisation / business activities
Software used to process the data
IT infrastructure; computers, networks
Internal controls & security measures to safeguard data

Question 15

3 Business Functions

Answer 15

Collect and store data
Transform data into information
Provide controls to safeguard assets & data

Question 16

How AIS Adds Value

Answer 16

Improving the quality and reducing the costs of products or services
Improving efficiency
Sharing knowledge
Improving the efficiency and effectiveness of its supply chain
Improving the internal control structure
Improving decision making

Question 17

Define Predictive Analysis

Answer 17

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

Question 18

Define Value Chain

Answer 18

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

Question 19

Primary & Secondary Value Chain Activities

Answer 19

Inbound logistics
Operations
Outbound logistics
Marketing & sales
Service

Firm infrastructure
Human resources
Technology
Purchasing

Question 20

Supply Chain

Answer 20

An extended system that includes an organization’s value chain as well as its suppliers, distributors and customers. The five steps of the supply chain is raw materials supplier, manufacturer, distributor, retailer and consumer.

Question 21

Define Data Processing Cycle

Answer 21

The four operations performed on data to generate meaningful and relevant information. Four operations; data input , data storage, data processing, information output.

Question 22

Data Input

Answer 22

Each activity of interest
The resource(s) affected by each activity
The people who participate in each activity

Question 23

Types of Data Storage

Answer 23

Ledgers
Coding techniques
Chart of accounts
Journals
Audit Trail
Computer-Based Storage

Question 24

4 Types of Data Processing

Answer 24

Creating
Reading
Updating
DDeleting

Question 25

Define Enterprise Resource Planning

Answer 25

A system that integrates all aspects of an organisation’s activities. An ERP system is modularised. Companies can purchase the individual modules that meet their specific needs. An ERP facilitates information flow among the companies various business functions and manages communications with outside stakeholders.

Question 26

Advantages of ERP

Answer 26

All information in a single database streamlines information
Data is only keyed once
Management gains greater visibility
Better access control
Procedures and reports are standardised
Customer service improves because employees can quickly access needed information
Manufacturing plants receive new orders in real time and the automation of manufacturing processes leads to increased productivity

Question 27

Disadvantages of ERP

Answer 27

Can cost $50-500 million
Amount of time required to select and ERP and implement
Changes to processes
Complexity
Resistance to changes from employees