Week 1 - Introduction To Information Systems In Accounting And Systems Thinking Flashcards Preview

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Flashcards in Week 1 - Introduction To Information Systems In Accounting And Systems Thinking Deck (19)
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1
Q

What is ‘information overload’ and what is the consequence of it?

A

Information overload is the result of providing too much information to decision makers.
It results in reduced decision making quality.

2
Q

What is the formula for quantifying the ‘Value of Information’?

A

Value of Information = Benefit (Improved decision making) - Cost (Time, Resources etc)

3
Q

What are the ‘Seven-Things’ that make information useful? And What do each of them mean?

A

1) Relevant - Information is only useful if it helps decision making
2) Reliable - Information needs to be free from bias.
3) Complete - Information doesn’t omit important details from events and activities.
4) Timely - Information needs to be offered in time to make good decisions.
5) Understandable - Information needs to be made understandable for decision makers.
6) Verifiable - Two independent people can come to the same conclusion.
7) Accessible - Useful information needs to be accessible to be useful.

4
Q

What is a ‘business process’?

A

A set of related, coordinated and structured activities/tasks performed by people or machines or both to achieve a specific organisational goal.

Something that someone or machine does to help achieve the organisational goals .

5
Q

What is the ‘Give-Get’ relationship in the revenue cycle?

A

Give Goods/services and receive cash

6
Q

What is the ‘Give-Get’ relationship in the expenditure cycle?

A

Give cash and receive goods/services

7
Q

What is the ‘Give-get’ relationship in the conversion cycle?

A

Give labour/raw materials and get finished goods

8
Q

What is the ‘Give-Get’ relationship in the management cycle?

A

Give cash and get labour

9
Q

What are the Key characteristics of a system?

A
  • The elements of the system must be interrelated.
  • The system must be indissoluble as a whole.
  • Each subsystem must support the goal of any higher system.
10
Q

Systems can be categories in two ways, either … or …

A

Type or Nature

11
Q

What are the Five different types of systems?

A

1) Static system
2) Dynamic System
3) Continuous system
4) Abstract System (exists in theory)
5) Natural System

12
Q

What are the three different natures of systems?

A

1) Open System
2) Semi-Open system
3) Closed System

13
Q

What is the difference between systems 1 thinking and systems 2 thinking?

A

Systems 1 = Automatic response, leads to cognitive bias.

Systems 2 = Allocates attention to the effort required to complete a task.

14
Q

What is an ‘Accounting Information System’ (AIS)?

A

AIS is a system that collects, records, stores and processes data to produce useful information for decision makers

15
Q

What four things does an AIS consist of?

A

1) People who use the system.
2) Processes (Procedures)
3) Technology (software, IT)
4) Controls to safeguard information

16
Q

What is a ‘Value Chain’ in relation to the AIS?

A

The value chain is all the activities that when added together, add vale to an organisation.

17
Q

Value Chain activities can be either Primary or Support, what does this mean?

A

Primary:
Provides direct value to the organisation (Marketing, Sales, Service department etc)

Support:
Provides indirect value to the organisation by enabling primary activities to be performed more efficiently and effectively. (Firm infrastructure, Technology, Purchasing etc)

18
Q

What are the Five ways in which a well thought out AIS can add value to an organisation?

A

1) Improve the quality and reduce the costs of products and services.
2) Improve efficiency
3) Sharing Knowledge
4) Improves internal controls
5) IMPROVES DECISION MAKING

19
Q

What is the main focus of an AIS?

A

To improve decision making