Term
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Definition
- Set of interrelated components that interact to achieve a goal
- most are composed of smaller subsystems |
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Definition
| - should be designed to maximize achievement of the organization's goals |
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Definition
| - occurs when the activity of a subsystem is not consistent with another subsystem or with the larger system |
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Definition
- Occurs when the subsystem's goals are in line with the organization's goals
- Harder to achieve as goal size increases
- achieved when a subsystem achieves its goals while contributing to the organization's overall goal |
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Definition
- Encourages integration
- used in systems development, chainges in subsystems cannot be made without considering the effect on other subsystems and the system as a whole |
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Term
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Definition
- Facts that are collected, recorded, stored, and processed by an information system
- usually represent observations or measurements of business activities that are of importance to information system users |
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Term
| What Organizations collect data about |
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Definition
- Events that occur
- Resources that are affected by those events
- Agents who participate in the events |
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Term
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Definition
| - Data that have been organized and processed to provide meaning to a user |
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Term
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Definition
| - Get more information than you can effectively assimilate |
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Term
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Definition
- Reduction of uncertainty
- Improved decisions
- Improved ability to plan and schedule activities |
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Term
| Characteristics that make information useful |
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Definition
- Relevance
- Reliability
- Completeness
- Timeliness
- Understandability
- Verifiability
- Accessibility |
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Term
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Definition
| - Use information that is either mandatory or essential |
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Term
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Definition
| - Required by a governmental entity |
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Term
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Definition
| - Required to conduct business with external parties |
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Term
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Definition
| - Primarily use discretionary information |
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Term
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Definition
- Accounting Information System
- System that collects, records, stores, and processes data to produce information for decision makers
- Can use advanced technology, be a simple paper-and-pencil system, or be something in between |
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Term
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Definition
- Collect and store data about events, resources, and agents
- Transform that data into information that management can use to make decisions about events, resources, and agents
- Provide adequate controls to ensure that the entity's resources (including data) are: available when needed and accurate and reliable |
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Term
| Why study Accounting Information Systems? |
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Definition
- It's fundamental to accounting
- The skills are critical to career success
- The AIS course complements other systems courses
- AIS topics are tested on the new CPA exam
- AIS topics impact corporate strategy and culture |
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Term
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Definition
- How value is added
- Includes primary and support activities |
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Term
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Definition
- directly provide value to its customers
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service |
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Term
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Definition
| - Receiving, storing, and distributing the raw materials that are inputs to the organization's product or service |
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Term
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Definition
| - Transforming those inputs into products or services |
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Term
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Definition
| - Distributing products or services to customers |
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Term
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Definition
| - Helping (making available) customers to buy the organization's products or services |
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Term
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Definition
| - Post-sale support provided to customers such as repair and maintenance function |
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Term
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Definition
- allow the five primary activities to be performed efficiently and effectively
- Firm infrastructure
- Human resources
- Technology
- Purchasing |
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Term
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Definition
| - can signficantly impact the efficiency and effectiveness with which the preceding activities are carried out |
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Term
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Definition
- repetitive and routine
- can be delegated to lower-level employees |
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Term
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Definition
- Incomplete rules
- Require subjective assessments |
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Term
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Definition
- Non-recurring and non-routine
- Require a great deal of subjective assessment |
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Term
| Occupational control decisions |
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Definition
- relate to performance of specific tasks
- often a day-to-day nature |
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Term
| Management control decisions |
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Definition
| - relate to utilizing resources to accomplish organizational objectives |
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Term
| Strategic planning decisions |
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Definition
- the "what do we want to be when we grow up" types of questions
- involves establishing organizational objectives, policies to achieve those objectives |
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Term
| Variation in the scope of a decisions effect |
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Definition
- occupational control decisions
- management control decisions
- strategic planning decisions |
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Term
| Two business strategies companies can follow |
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Definition
- product-differentiation
- low-cost |
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Term
| Product-differentiation strategy |
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Definition
| - setting your product apart from those of your competitors |
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Term
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Definition
- offering a cheaper product than your competitors
- made possible by operating more efficiently |
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Term
| variety-based strategic position |
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Definition
| - offer a subset of the industry's products or services |
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Term
| needs-based strategic position |
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Definition
| - serve most or all of the needs of a particular group of customers in a target market |
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Term
| access-based strategic position |
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Definition
| - serve a subset of customers who differ from others in terms of factors such as geographic location or size (not limited to those two) |
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Term
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Definition
- variety-based
- needs-based
- access-based
- not mutually exclusive and can often overlap |
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Term
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Definition
- Data warehousing/mining
- adds to competitive advantage by forecasting future events based on historical trends |
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Term
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Definition
| - eliminates duplicate recording, storage, reporting, and other processing activities in an organization |
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Term
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Definition
| - the benefit produced by the information minus the cost of producing it |
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Term
| discretionary information |
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Definition
| - choices must be made regarding what information should be made available, to whom, and how frequently |
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Term
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Definition
| - accounting, finance, legal, and general administration activities that allow an organization to function |
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Term
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Definition
| - activities include recruiting, hiring, training, and providing employee benefits and compensation |
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Term
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Definition
| - activities that improve a product or service |
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Term
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Definition
| - activities procure raw materials, supplies, machinery, and the buildings used to carry out the primary activities |
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Term
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Definition
| - a larger system consisting of an organization's value chain |
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Term
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Definition
| - relates to the effective and efficient performance of specific tasks |
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Term
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Definition
| - relates to the effective and efficient use of resources for accomplishing organizational objectives |
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Term
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Definition
| - relates to establishing organizational objectives and policies for accomplishing those objectives |
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Term
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Definition
| - the entire system of organizational activities is greater than the sum of each individual part |
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