The Business Environment and the AIS
An AIS does not exist in a vacuum; rather it is an integral part of the firm it serves. The AIS has close relationship with the organization of the firm and its physical operations or process. The firm itself is a system with its own environment. Many of the business and accounting events that are captured and processed by the AIS arise within the environment of the business firm. There are three subsystem of the firm: organizational, operational and information. These subsystems are interlinked. Systems Characteristic of Business Firms
A business firm is a system that has objectives, constrains, control, inputs, process, outputs, an environment and interdependent subsystems. Objectives: the objectives are the goals or motivating forces that drives the process. Environment; the surroundings that lie beyond a firm’s boundary compose its environment Constraint; the constraints are the internal or external restrictions that define the configuration and capabilities of the system. One type of constraint is the boundary that separates the system, such as a firm from its environment. Input-Process-Output ; the input to a business firm include the resources needed to conduct operation and produce outputs Feedback; often the information outputs are reentered or feedback as inputs; that is a firm may employ feedback as means of increasing the degree of control Controls; the controls are the means of regulation. They enable a system such as a firm to monitor operation and process, so as to identify and correct deviations from plans Subsystems; every system has interdependent subsystems. The subsystems, which have all the characteristic of systems, are linked to each other through coupling or shared boundaries called interfaces.
Environments beyond Business Firms
Beyond any firm lies and environment that is economic, social, technical, and political. Variations in the environments of firms have impact on needed resources and...
Please join StudyMode to read the full document