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How an ais can add value to an organization

28/03/2021 Client: saad24vbs Deadline: 2 Day

Accounting Information Systems

Fourteenth Edition

Chapter 1

Accounting Information Systems: An Overview

Copyright © 2018 Pearson Education, Inc. All Rights Reserved

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

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1

Learning Objectives

Distinguish between data and information:

Discuss the characteristics of useful information.

Explain how to determine the value of information.

Explain the decisions an organization makes:

The information needed to make them.

The major business processes present in most companies.

Explain how an AIS adds value to an organization.

How it affects and is affected by corporate strategy.

The role of AIS in a value chain.

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

2

Distinguishing Between Data and Information

Data are facts collected, recorded, and stored in the system

A fact could be a number, date, name, and so on.

For example:

2/22/14

ABC Company, 123,

99, 3, 20, 60

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

3

Data vs. Information

The previous slide just showed data, if we organize the data within a context of a sales invoice, for example, it is meaningful and considered information.

Invoice Date : 2/22/14 Invoice #: 123

Customer: ABC company

Item # Qty Price

99 3 $20

Total Invoice Amount $60

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

4

Decision Quality

Information helps us make better decisions.

Too much information causing information overload can reduce decision quality.

Information Technology (IT) is used to help decision makers more effectively filter and condense information.

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

5

Value of Information

Information is valuable when the benefits exceed the costs of gathering, maintaining, and storing the data.

Benefit (i.e., improved decision making) - Cost (i.e., time and resources used to get the information) = value of information

Copyright © 2018 Pearson Education, Inc.

Chapter 1: Accounting Information Systems: An Overview

Slide 1 - ‹#›

6

What Makes Information Useful? (1 of 2)

There are seven general characteristics that make information useful:

Relevant: information needed to make a decision (e.g., the decision to extend cu

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