Accounting Information System

Only available on StudyMode
  • Download(s) : 1392
  • Published : April 28, 2013
Open Document
Text Preview
1.4 How do an organization’s business processes and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS.
An organization’s AIS must reflect its business processes and its line of business. For example:

* Manufacturing companies will need a set of procedures and documents for the production cycle; non-manufacturing companies do not. * Government agencies need procedures to track separately all inflows and outflows from various funds, to ensure that legal requirements about the use of specific funds are followed. * Financial institutions do not need extensive inventory control systems. * Passenger service companies (e.g., airlines, bus, and trains) generally receive payments in advance of providing services. Therefore, extensive billing and accounts receivable procedures are not needed; instead, they must develop procedures to account for prepaid revenue. * Construction firms typically receive payments at regular intervals, based on the percentage of work completed. Thus, their revenue cycles must be designed to track carefully all work performed and the amount of work remaining to be done. * Service companies (e.g., public accounting and law firms) do not sell physical goods and, therefore, do not need inventory control systems. They must develop and maintain detailed records of the work performed for each customer to provide backup for the amounts billed. Tracking individual employee time is especially important for these firms because labor is the major cost component

1.7Apply the value chain concept to S&S. Explain how it would perform the various primary and support activities.

The value chain classifies business activities into two categories: primary and support.

The five primary activities at S&S:
a. Inbound logistics includes all processes involved in ordering, receiving, and temporarily storing merchandise that is going to be sold to S&S customers. b. S&S does not manufacture any goods, thus its operations activities consists of displaying merchandise for sale and protecting it from theft. c. Outbound logistics includes delivering the products to the customer. d. Sales & marketing includes ringing up and processing all sales transactions and advertising products to increase sales. e. Service includes repairs, periodic maintenance, and all other post-sales services offered to customers.

The four support activities at S&S:

a. Firm infrastructure includes the accounting, finance, legal, and general administration functions required to start and maintain a business. b. Human resource management includes recruiting, hiring, training, evaluating, compensating, and dismissing employees. c. Technology includes all investments in computer technology and various input/output devices, such as point-of-sale scanners. It also includes all support activities for the technology. d. Purchasing includes all processes involved in identifying and selecting vendors to supply goods and negotiating the best prices, terms, and support from those suppliers

1.8 Information technology enables organizations to easily collect large amounts of information about employees. Discuss the following issues:

These questions involve traditional economic cost/benefit issues and less well-defined ethical issues.

a. To what extent should management monitor employees’ e-mail?

Generally, the courts have held that organizations have the right to monitor employees’ email. Such monitoring can have disastrous effects on employee morale, however. On the other hand, it might provide legitimate information about group members’ individual contributions and productivity.

b. To what extent should management monitor which Web sites employees visit?

Students are likely to argue whether or not this...
tracking img