Information System

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Chapter 1—The Information System: An Accountant's Perspective Homework student number: name: 2010/10/25 Please answer these below ESSAY question

1.Contrast the responsibilities of operations management, middle management, and top management. Explain the different information needs for each level of management.

ANS:
Operations management is directly responsible for controlling day-to-day operations. Operations managers require detailed information on individual transactions such as sales, shipment of goods, usage of labor and materials in the production process, and internal transfers of resources from one department to another. Budgeting information and instructions flow downward from top and middle management to operations management.

Middle managers perform short-term planning and coordination of activities necessary to accomplish organizational objectives. Middle management requires information that is more summarized and oriented toward reporting on overall performance and problems, rather than routine operations.

Top management is responsible for longer-term planning and setting organizational objectives. Information provided to top management is highly summarized.

2.Explain the difference between data and information.

ANS:
Data are facts which may or may not be processed; data have no particular impact on the user. Information is processed data that causes the user to take action.

3.Several disadvantages of distributed data processing have been discussed. Discuss at least three.

ANS:
Distributing the control of information resources can lead to mismanagement of organizational resources.

Hardware and software incompatibility can result.

Distribution of responsibility can result in many users performing redundant tasks.

Individual user control can lead to internal control concerns when users perform incompatible duties....
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