Chapter 15: Decision Making Models and Knowledge Management
1) Why are knowledge management and decision making processes important in the study of accounting information systems? Knowledge management and decision making processes are important in the study of accounting information systems because these are concepts that are able to improve the processing of financial data. By making the process of financial data more efficient, these concepts assist managers in making accurate decisions for their company.
2) What is a knowledge management system? A knowledge management system is a concept that enables knowledge-based assets to create value for businesses. This helps the business to retain knowledge of one employee and be able to pass along the knowledge to other employees in the business. The importance of this is so that businesses can capture employee ideas that can increase efficiency and effectiveness of a certain area and be able to pass that knowledge on to other employees. This helps to ensure that the knowledge is never lost and the business can continue to grow.
3) What other kinds of decision contexts do practicing accountants confront? How can they make decisions effectively and efficiently? Practicing accountants have to confront many decision contexts in their profession. Some examples of decisions that practicing accountants must make are determining how much inventory to order, determining the useful life of plant assets, and determining the amount of dividends to issue to shareholders. One way that practicing can make decision effectively and efficiently is by using the Steps for Better Thinking (SBT) idea. This concept is especially useful when dealing with decisions that are open-ended and complex.
The SBT model starts by creating a foundation through acquiring background knowledge and skills. It is important that an accountant knows what they are doing and have acquired skill sets that deem them qualified to make a...
Please join StudyMode to read the full document