Accounting Information Systems Example Questions

invoice frame Information Systems Example Questions score INFORMATION SYSTEM IIINTRODUCTIONAccounting is the elemental mien of organizing and cut throughing financial cultivation which is all about inf grim and flush of m maviny. Accounting agreement is withal used to come out, analyse, mea sure as shooting, record, summarize and communicate applicable instruction to the internal and external users.Data is the facts that stash away, recorded, stored and processed in info carcass. While cultivation is the info which is already organized and proceed to exit meaning and dish out in the process of closing qualification. Information is selective discipline that micturate been organized and processed to earmark meaning to a user. Users typically unavoidableness randomness to consider determination or to amend the conclusion making process. As a general rule, users dope line give away decision as the quantity and calibre of information increments. This i nformation helps to realize what an AIS does.As regarding all the questions given it is grassrootsally exploring the information environment of an memorial tablet. From these we sewer look at the types of information used in c atomic number 18, the flow of information through an presidential term and the relations in the information systems components. Next , it exchangeablewise shows the impact for the presidency structure on accounting information system where there is a interrelated theatrical role for the worry organization.Questions1. A no-hit accounting information system mustinessiness provide information for charge decision making. In that managements decisions evolve around an organizations dodge, the accounting information system should be designed to withstand the organizations strategy. separate the cardinal primary strategies suggested by Michael ostiarius and identify an organization that you believe follows each strategy. Be sure to follow why yo u believe that the organization follows the strategy you suggestMichael porters beer, world-renowned professor of business at Harvard claimed that there atomic number 18 two basic business strategies that companies digest follow. First of all, a crossroad differentiation strategy entails adding features or function non provided by competitors to a product so that we could charge customers a premium price. Secondly, a low nest strategy entails striving to be the most efficient producer of a product or service. A accompany tidy sum succeed in both producing a split product than its competitors and doing at cost below its fabrication average. However, company must choose between the two basic strategies. If they concentrate on be the lowest-cost producer, they allow have to forego some observe-added features that might differentiate their product. If they strain on product differentiation, they most likely lead non have the lowest costs in their application. Thus, a business strategy involves making choices. Porter argues that the fundamental choice companies must make involves selecting a specific strategic puzzle they wish to adopt. He described three basic strategic dos. Firstly, a variety-based strategic lay out involves producing or providing a subset of the industrys products or run. For example, Jiffy Lube International focuses on cover changes and lubrication services rather than a wide range of automotive recreate services. Secondly, a needs-based strategic coiffe involves trying to serve most or all of the needs of a particular sort in a tar pretend market. For example, AARP focuses on retirees. The third strategic position is an access-based strategic position involves serving a subset of customers who differ from other customers in term of factors much(prenominal) as geographic location or size, which creates different requirements for serving those customers. For example, the conduct brokerage offices of Edward Jones ar e located primarily in smaller towns and cities not served by the larger brokerage houses.Michael Porter excessively explains that these three basic strategic positions are not mutually exclusive and, indeed, oft overlap. For example, sou-west Airlines employs a variety-based strategic position because it only supports a subset of the products provided by the flight path industry. Southwest excessively employs a needs-based strategic position in that it has determine a specific target market for which it designs its services. Finally, Southwest employs an access-based strategic position because it does not service all markets.2. Within the nurse kitchen stove of an organization there are five radical activities and four support activities. Describe how an accounting information system fits into the determine chain of an organization. Where does it add shelter?The goal of any business is to offer lever to its customers. The profitable of the business is depended on the cr eation of the value which is greater than the cost of the product or services.Value chain is the analysis which defines the accomplishments of the organization achieves and joined them to the organizations of the competitive position. The value chain concept gutter be drawn by distinguishing that organizations must interact with suppliers, distributors, and customers. Accounting information system washstand add value with providing precise and appropriate information. These will makes that five primary value chain activities great deal be performed more effectively and efficiently. Five primary value chains stated are inbound logistics, operations, outbound logistics, trade and sale, and service. separately of these primary activities is linked by another to support actions which help to increase the effectiveness of efficiency. Inbound logistic is like receiving, keeping or storing, and allocating the materials that are inputs to the organizations product or service. While, op erations was of those inputs that flush toilet be transform into products or services. Then it will distribute those products or services to customers which is known as outbound logistic. Marketing and gross sales give function for helping the customer to buy the products or services of the organization. The last one which is service was the post-sale support which is provided to customers, like repair and maintenance function. Support activities are also within the value chain of the organization. These support activities burn be classes into four categories. First, tight infrastructures which are like accountants, administration and lawyers which participating in the companys accounting information system. Second was a kind-hearted resource which includes of hiring a new employee, training employee and paying employees, and also handling employee benefits. Next is technology of the organizations. This technology quite a little be related to the employment of the organizati on to improve their products or services. The last one is the purchasing. Organization will purchase some resources which are needed to carry out the entity of the primary activities.Accounting information system flush toilet also add value by upward(a) the quality and reducing the cost of products or services. Next, it tramp improve the efficiency like just in time. Just in time is an inventory management method which is resources, beneficials and labour are be after to fill exactly when needed in the process of productions. It stack also add value by improving the decision making. The decision nobleman observes about the information output made by the transaction treat system, the management reporting, and the whether the budgeting systems meets their needs in the organization and the master of tasks. Sharing of companionship also can be add value to the organization. Accounting information system used to share knowledge within the organization is like using of a busine ss database to assists the staff to identify the appropriate experts who can help with a particular client.3.Why data and information are among an organizations most worth(predicate) assets?Data are about the facts which are not processed, edited, summarized, or redefined and which do not have direct effect on the users. It is cardinal to have the data because it is used to represent the observation or measuring stick of the business activities. Different kind of data that can be compile in the business can be about the facts on activities that allow in place, the resources affected by the activities and the people who participate in the activity. For instance, data that is collected during a sales event which states on the date and amount of sales of goods and services based on the quantity and the price per unit. Where else, information is basically about the data that have been organized systematically to provide significant information for the germane(predicate) users. With the information that is given we can easily make decision for an organization and information is also known as authorisation and essential. For example, a sales agent will receive the daily report on the sold item that are be out in daily transaction. Both data and information are an important asset for all the organization. Firstly, with this data and information, an organization are able to foster themselves from being in financial losses. If there are any circumstances on the losses than they will know it by checking the data and information and they can secure their company from bankruptcy. Next, these data and information can help to improve the efficiency of an organization. This can be done because with the relevant data and information an organization are able to intimately designed their information by providing timely information as needed on time. For instance, a manufacturing company are able to provide up to date information on their raw materials and inventor ies with the location as because it is well managed and being organized. Followed by, the ability to make a decision, where as an organization they are able to make relevant decision with the data and information available because with this data and information organization are able to make a decision to solve their problem. For example, with the data and information from the organization on the results of previous decision provides value feedback that can be improved to make future decision, where if a particular marketing strategy is tried in organization and with the data and information collect indicates that it will be a success full business in an organization. Lastly, data and information are an important asset because there can be a misappropriation of data and information if they are not protected. Every organization will use they own method to protect their data and information from being stolen by internally and externally as well. As an information the security, control and privacy of data and information are being an important issue worldwide. Therefore, with proper internal and external control they can be aware of fraud, error, software failure and natural and policy-making disasters.4. THE AIS PLAYS AN IMPORTANT ROLE IN MAINTAINING A STRATEGIC POSITION, HOWThere are two basic strategies which are To be a lower cost producer than competitor and To differentiate product and services from competitors. The three basic strategic position included of variety based strategic position, need based strategic position and access based strategic position. modification based strategic position is more to provide a subsets of the industrys products and services. Need based strategic position will offer most or all of the needs of a particular group of customers in a target market. Access based strategic position will provide a subset of customer who differ from others in terms of factor such as geographic location or size. Accounting information syste m plays its role in citeing strategic position by collecting data about each activity and by transferring data into information which can be used by managements to coordinate those activities. A well designed Accounting Information system can support a strategic position of an organization by Improving the quality and reducing the cost of product or services. Normally, sales of a firm will increase if they provide goods or services in less(prenominal) price with high quality. This will be the main issue that line up among the competitors. For example, an accounting information system can monitor all the machines activities. It can immediately detect the problem occurred if there is any. This will help to maintain the goods quality and reduces the number of waste products. Besides that, It is also improving efficiency. It can be explained by just in time concept. This approach is mainly based on time information. This approach requires constant, accurate, and up to date informa tion about the raw materials and their location in order to make sure the availability of raw materials to produce goods. It is also help by manduction knowledge. The main difficulties faced by many firm is the employee will never receive the accurate information based by the upper take aim management. Sharing knowledge can improve company operation and provide a competitive advantage. It is also plays an important role in improving efficiency and effectiveness of supply chain. It is can be explained by allowing customers to forthwith access in inventory and sales order entry system. This approach will lead to reduce in sales and marketing cost. It will also increase customer retention rates. Other than all this, it is also improving the internal control structure. An accounting information system with the good internal internal control structure can help the system to protect by fraud, errors, system failure and disasters. Lastly, it is also improving a good decision making. Dec ision making is a complex activity. ameliorate decision making is very important.5. How to provide more information to get better decision maker?Decision making is a complex, multistep activity, identify the problem, collect and interpret information, evaluate ways to solve problem, select a solution methodology and implement the solution. AIS can help decision making in its all phases. Reports could help in identifying problems. Differentiation in decision models and analytical tools can be given to users. Information can help to get better decision if it identifies situations requiring management action.Besides that, large information could help make better decision when it presents a basis for choosing among alternate(a) actions by decreasing uncertainty. For example, information is used to establish prices and verify computer address policies. Information about the result of past decision postulates a valuable respond that can be used to improve future decision. For example, if a particular marketing strategy is tried and the information gathered indicates that it did not succeed, a different marketing strategy is selected.AIS can improve decision making by stipulating perfect information to a timely manner. For example, Wal-Mart has invented a huge database that contains all information about daily sales transactions at each of its stores. The information helps to enhance the amount of every product collected at each store.CONCLUSIONAn effective accounting information system provides the management information for decision making. Managements decisions can develop an organizations strategy of the accounting information system which designed to support the organizations strategy. There are two basic strategies that are suggested by Michael Porter, that are product differentiation strategy which is adding features to charge customer at premium price and also low cost strategy which help to determine the efficient producer of the resources. Michael Porte r decide that there are three basic strategic position that are variety-based strategic, needs-based strategic and access-based strategic, that are not mutually limited and often overlap.For addition, accounting information system can add value to the organization. These can help to provide organization accurate and precise information. It also can add value to improve the quality and reducing the cost, improve the efficiency, improving the decision making and also can share knowledge towards the organizations. only organization has data and information to continue as long as to be operated. These data and information is most valuable asset of an organization. In the case of manufacturing company, data and information will make organization well managed and being organized. It also can improve the efficiency of an organization and these data will able to secure themselves from being in financial losses. An accounting information system with the good internal control structure can he lp the system to protect by fraud, errors, system failure and disasters. Lastly, it is also improving a good decision making. Decision making is a complex activity. Improved decision making is very important.