Organisational Information Structures Flashcards
Explain five benefits of computerisation of accounting information and processing systems
- Quick processing of transactions 2. Input of some transactions is automated 3.Reduced amount of errors 4. Provides labour cost benefits 5. Provide high quality management information
Explain any two ways in which in which the computerised accounting systems has changed the nature of the work accountants do
- Routine accounting work can be done more quickly with automated processing. 2. The change means accountants can spend more time on different types of work, such as providing information and giving financial advise to senior management.
Accounting information systems
- Financial accounting systems 2. Cost accounting systems 3. Payroll accounting systems 4. Tax accounting system
Information systems
- Transaction processing system 2. Office automation system. 3. A management information system. 4. Decision support system 5. Executive information system
Office automation system
Automated aspects of office work that might otherwise have to be done manually. Microsoft office, automated emails, accountancy software
Transaction processing system
Used for processing of routine tasks or transactions for a particular aspect of operation. Eg. Sales ordering system, accounting system, inventory control system
Management information system
Provides information to management from sources within the organisation, management can then use information to make decisions. Information obtained from TPS. Eg system used to produce income statements and maybe extracted from a database
Executive information system
A system used by senior executives to access information or data that may help them with their work. It strategic, or high level. Comes from both internal and external sources.
Batch processing
A large number of transactions are processed at the same time(in a batch)
Online processing
Transactions are input into the computer system from a users terminal(using screen, keyboard and mouse) and input is done at a convenient time, without first of all gathering them into batches
Real time processing
Similar to online processing, but means that the processing of data is carried out very quickly so that near instantaneous output is carried out. Usually use data instead of human input
Advantages of batch processing
- Control over error detection 2. It is economical, cheap and efficient way of processing data 3.Leaves an audit trail
Disadvantages of batch processing
- Master file not up to date 2. Volume of data maybe low and batch processing might not be justified. 3. Source documents can go missing 4. Out of date information means wrong decisions 4. Strike will worsen delays . 6. Overloads the machine
Explain any two ways in which in which the computerised accounting systems has changed the nature of the work accountants do
- Routine accounting work can be done more quickly with automated processing. 2. The change means accountants can spend more time on different types of work, such as providing information and giving financial advise to senior management.
Accounting information systems
- Financial accounting systems 2. Cost accounting systems 3. Payroll accounting systems 4. Tax accounting system
Information systems
- Transaction processing system 2. Office automation system. 3. A management information system. 4. Decision support system 5. Executive information system
Office automation system
Automated aspects of office work that might otherwise have to be done manually. Microsoft office, automated emails, accountancy software
Transaction processing system
Used for processing of routine tasks or transactions for a particular aspect of operation. Eg. Sales ordering system, accounting system, inventory control system
Management information system
Provides information to management from sources within the organisation, management can then use information to make decisions. Information obtained from TPS. Eg system used to produce income statements and maybe extracted from a database
Executive information system
A system used by senior executives to access information or data that may help them with their work. It strategic, or high level. Comes from both internal and external sources.
Batch processing
A large number of transactions are processed at the same time(in a batch)
Online processing
Transactions are input into the computer system from a users terminal(using screen, keyboard and mouse) and input is done at a convenient time, without first of all gathering them into batches
Real time processing
Similar to online processing, but means that the processing of data is carried out very quickly so that near instantaneous output is carried out. Usually use data instead of human input
Advantages of batch processing
- Control over error detection 2. It is economical, cheap and efficient way of processing data 3.Leaves an audit trail
Disadvantages of batch processing
- Master file not up to date 2. Volume of data maybe low and batch processing might not be justified. 3. Source documents can go missing 4. Out of date information means wrong decisions 4. Strike will worsen delays . 6. Overloads the machine
Client server network
This is a network structure in which terminals or work stations are linked to one or more server computers.
Information technology infrastructure
Refers to all hardware, software, databases, telecommunications, people and procedures that are configured to collect, manipulate, store and process data resources into information products
Information system
Used resources of people, hardware, software, data, and networks to perform input, processing, output, storage and control activities. It is the way information management
Hardware
Computer, it peripherals and consumables such as stationary
Software
Programs running on these computers
Roles of information systems
Planning, controlling, recording transactions, performance measurement, decision making
Operations support system
TPS, OAS, KWS
Management support systems
DSS, MIS, EIS
Direction of communication
Vertical, Horizontal or lateral and diagonal
Formal communication channels
Targets, budgets, decisions, policies and procedures. These are closely specified and often require authorisation
Informal communication channel
Questioning a managers decision, not as per system, gossip and rumour. This is basically unofficial communication
Internal communication
Communication taking place within an organisation while external communication goes outside of the organisation
Data
Consists of raw, unprocessed facts and figures
Information
Data that has been processed in such a way that it is meaningful for planning or decision making
Internal data and information
Accounting records, personnel records, production data, timesheets, informal data and information gathering
Qualities of information
Accurate, Cost effective, complete, understandable, relevant, accessible, timely, easy to use
Define a computer
An electronic device which will accept data, process it and store or output the results
Types of computers
Supercomputers, mainframe computers, mini computer, microcomputer(personal computer), laptops, tablets and file server
What us RAM
Random Accesss Memory is memory that is directly available to the processing unit. Holds data and programs in current use
MICR - Magnetic Ink Character Recognition
This involves the recognition by a machine of special formatted characters printed in magnetic ink. Advantage include speed and accuracy. Used in banking industry on cheques and deposit slip
OMR - Optical Mark Reading
Involves marking of a preprinted form with a ball pint pen it typed line or across in an appropriate box. Used in marking mcq and market.
Scanner
Device that can read text or illustrations printed on paper and translate the information into a form the computer can use.
Database
A file of data, or files of inter related data, that is structured and designed in such a way that many different processing applications can use the same data and update it
DBMS - Database Management System
Set of programs that manages the database. It deals with all aspects access, maintenance and security of data
Advantages of database
Less duplication, less processing, easy updating, data consistency, improving access to data, formal control of data.
What is ERP System
This is a modular software packages designed to intergrate the key processes in an organisation so that a single system can serve the information needs of all functional areas
Data warehouse
Consists of a database, containing data from various operational systems, and reporting and query tools also known as big data
Data Mining
This is an analytic process designed to explore data in search of consistent patterns and/or systematic relationships between variables, and then validate the findings by applying the detected patterns to new subsets of data
