Acc info systems ch 1

Data

acts collected, recorded, and stored in the system

Data can be

Numbers, dates, names, etc
ex: 2/22/14, ABC Company, 123

Data organized within context is meaningful and considered

information

Information example

Invoice Date : 2/22/14
Invoice #: 123
Customer: AB C Company

Data is most useful when it is in a ___ that can be read and

processed by a computer.

machine-readable format

XBRL

example of a machine-readable format to make data into information

Too much information causing ___ can reduce decision quality.

information overload

Information Technology (IT)

Efficiently filters / condenses information for decision makers

Information is valuable when the benefits exceed

costs of time/resources used to get information

Benefits of information

improved decision making

Cost of information

time and resources used to gather, maintain, and store the data

Components of info systems

people, organization, technology

Business process

set of related, coordinated, and structured activities and tasks performed by people, machines, or both to achieve a specific organizational goal

Business processes are followed by

key decisions and information needs

Business process example: acquire building and equipment

key decisions: Size of building, amnt of equipment, renting vs buying, location

information needs: Capacity, building/equipment prices, taxes and regulations

Transactional information between an AID

Flow of info between internal and external parties
Ex:
Customer orders > AIS > Vendor purchase order

Revenue Cycle

Sell goods and services —> recieve payment

Expenditure Cycle

Buy goods and services —> make payment

Production Cycle

Use employee time + raw materials + macheinery —> make finished product

HR/Payroll Cycle

Get employee time —> Pay employees

General ledger and reporting system

Produce reports and fin statements

The flow of info between internal/external users for various business activities involves a ___ grouped into bus processes or transaction cycles

give-get exchange

Basic Business Processes

Transactions between the business organization and external parties fundamentally involve a “give–get” exchange.

Accounting Information System (AIS)

a system that collects, records, stores, and processes data to produce information for decision makers.

AIS consists of

People using system

Processes (procedures and instructions)

Technology (data, software, and IT infrastructure)

Controls to safeguard information

Data analytics

use of software and algorithms to find and solve problems and improve business performance

Artificial intelligence (AI)

use of computer systems to simulate human intelligence processes such as learning, reasoning, and self-improvement.

Cloud computing

use of a browser to remotely access software, data storage, hardware, and applications

Virtualization

running of multiple systems simultaneously on one physical computer

Internet of Things (IoT)

refers to the embedding of sensors in a multitude of devices/appliances to connect them to the Internet.

Strategy

overall goal the organization hopes to achieve (e.g., increase profitability)

value chain

Links together the different activities within an organization that provide value to the customer.

Primary activities (Value chain)

provide direct value to customers

Examples of primary activities

Inbound logistics > operations > outbound logistics > marketing and sales > service

Examples of secondary activities

Firm infrastructure, HR, tech, purchasing

Support activities

enable primary activities to be efficient and effective

Supply chain

Invludes value chain + supplieer, distributors, and customers

Which of the following is NOT a characteristic that makes information useful?

It is inexpensive

Which transaction cycle includes interactions between an organization and its suppliers?

Expenditure cycle

In which cycle does a company ship goods to customers?

Revenue cycle

Which of the following is a primary activity in the value chain?

Post-sales service