Module 1 Flashcards
Define System
Two or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system.
Define Goal Conflict
When a subsystem goal in inconsistent with the goals of another subsystem or the system as a whole
Define Goal Congruence
When a subsystem achieves its goal while contributing to the organisation’s overall goal
Define Data
facts that are collected, recorded, stored and processed by an information system
Define Information
Data that has been organised and processed to provide meaning and improve decision making
Define Information Overload
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.
Define Information Technology
Computers and other electronic devices used to store, retrieve, transmit and manipulate data.
Evaluate Value of Information
The benefit provided by information less the cost of producing it.
Define Business Process
A set of related, coordinated and structured activities and tasks, performed by a person, computer or machine, that help accomplish a specific organisational goal.
7 Characteristics of Useful Information
Relevant Reliable Complete Timely Understandable Verifiable Accessible
Parties Interacting w AIS
Vendors Investors Creditors Banks Customers Employees Management Government Agencies
Major Activities in Transaction Cycle
Revenue Expenditure Human Resource/ Payroll Production Financing
Define Accounting Information System
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.
6 Components of an AIS
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
3 Business Functions
Collect and store data
Transform data into information
Provide controls to safeguard assets & data
How AIS Adds Value
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
Define Predictive Analysis
The use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities.
Define Value Chain
Linking together of all the primary and support activities in a business. Value is added as a product passes through the chain.
Primary & Secondary Value Chain Activities
Inbound logistics Operations Outbound logistics Marketing & sales Service
Firm infrastructure
Human resources
Technology
Purchasing
Supply Chain
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.
Define Data Processing Cycle
The four operations performed on data to generate meaningful and relevant information. Four operations; data input , data storage, data processing, information output.
Data Input
Each activity of interest The resource(s) affected by each activity The people who participate in each activity
Types of Data Storage
Ledgers Coding techniques Chart of accounts Journals Audit Trail Computer-Based Storage
4 Types of Data Processing
Creating
Reading
Updating
DDeleting
