Professional Documents
Culture Documents
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Learning Objectives
Distinguish between data and information.
Discuss the characteristics of useful information. Explain how to determine the value of information.
Explain the decisions an organization makes and the information needed to make them.
Identify the information that passes between internal and external parties and an AIS.
Describe the major business processes present in most companies. Explain what an accounting information system (AIS) is and describe its basic functions. Discuss how an AIS can add value to an organization. Explain how an AIS and corporate strategy affect each other. Explain the role an AIS plays in a companys value chain.
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What Is a System?
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Information
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Value of Information
Benefits
Reduce Uncertainty
Improve Decisions Improve Planning
Costs
Time & Resources
Produce Information Distribute Information
Improve Scheduling
Benefit $s > Cost $s
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Business Process
Financing
Revenue
Human Resources
Expenditure
Production
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Human Resources
Financing
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Business Transactions
GiveGet exchanges
Between two entities Measured in economic terms
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Accounting = AIS
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Components of an AIS
People using the system
Procedures and Instructions
For collecting, processing, and storing data
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Value Chain
The set of activities a product or service moves along before as output it is sold to a customer
At each activity the product or service gains value
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Firm Infrastructure
Technology
Human Resources
Purchasing
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Value Chain
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Business strategy
Organizational culture Will effect and be effected by new AIS
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