What is AIS and how does it effect a firm's value? Flashcards
What is accountants role in AIS?
to decide what information is needed
to build information system for gathering necessary information
to make a decision on finalized information from information analysis.
Define accounting information system (AIS)
1) a system that records, processes, and reports on financial and non- financial transactions to gather information for making business decisions.
2) AIS has appropriate levels of internal controls for financial and non- financial transactions.
Why study AIS?
1) study financial software design
2) study financial information is reported
3) study how business decisions have influence on information.
What is “ SIMPLE INFORMATION SYSTEM”?
input — > processing* –> output
*= storage ( influences processing).
What is ERP and how is it a AIS?
1) enterprise system
2) collects business operation’s data
3) after information is collected and finalized, the report is available for managers.
What are the functions of ERP for a company and customers?
1) evaluate inventory levels in a warehouse
2) determine when shipped
3) evaluate customer’s credit
What is a supply chain?
the flow of materials, information, payments, and services from suppliers all the way through the customer.
example: walmart
What is customer relationship management?
This software is used to manage interactions with customer purchases.
example: amazon
How does AIS effect revenue?
1) CRM may attract new customers, generating additional sales revenue
How does AIS effect COGS?
1) SCM evaluates a firm’s inventory and confirm its location in a warehouse.
As a result, SCM lowers obsolescence, logistics, and procurement costs
How does AIS effect SG&A?
ERP can lower the cost of support processes
How does AIS effect interest expense?
SCM benefits a firm to carry less inventory.
Less inventory leaves less assets to financial and may reduce debt and interest related expenses.
How does AIS effect net income?
SCM and CRM could improve net income.
What are specific accounting roles for accountants who use AIS?
1) user-input journal entries
2) manager-evaluating accounting information
3) designer-creates AIS or systems analysis
4) evaluator- reviews accounting information system.
What are primary activities of a value chain?
1) inbound logistics
2) operations
3) outbound logistics
4) marketing and sales activities
5) service activities
