Topic 1 - Accounting Information Systems Flashcards
0
Q
What is an accounting information system?
A
- It can be manual or computerized
- Consists of:
1. People who use the system
2. Processes
3. Technology (data, software, and information technology)
4. Controls to safeguard information
1
Q
What are the seven general characteristics that make information useful?
A
- Relevant: information needed to make a decision
- Reliable: information free from bias
- Complete: does not omit important aspects of events or activities
- Timely: information needs to be provided in time to make the decision
- Understandable: information must be presented in a meaningful manner
- Verifiable: two independent people can produce the same conclusion
- Accessible: available when needed
2
Q
How does an AIS add value?
A
- A well thought out AIS can add value through effective and efficient decisions
1. Having effective decisions mens quality decisions
2. Having efficient decisions means reducing costs of decision making
3
Q
What is the value chain?
A
The value chain shows how the different activities within an organization provide value to the customer. These activities are primary and support activities.
4
Q
What are primary activities?
A
Primary activities provide direct value to the customer.
5
Q
What are support activities?
A
Support activities enable primary activities to be efficient and effective.
6
Q
What are examples of primary activities?
A
- Inbound logistics (Receiving and storing materials)
- Operations (Manufacturing & repackaging)
- Outbound logistics (Distribution & shipping)
- Marketing and Sales (Advertising & selling)
- Service (Repair & maintenance)
7
Q
What are examples of support activities?
A
- Firm infrastructure
- Human resources
- Technology
- Purchasing
8
Q
What is the supply chain?
A
- Raw materials supplier
- Manufacturer
- Distributor
- Retailer
- Consumer
