AIS test 1

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  1. what is vertical flow distributions? what direction do they flow? and examples
    inflormation that flows downward from senior management to junior managers. examples include instructions, quotas and budgets
  2. two types of external users
    • 1) trading partners--exchanges include sales, billing, supplies
    • 2) stakeholders--entities with a direct interest in the organization
  3. elements of a system (4)
    • 1) more than one component
    • 2) must serve a common purpose
    • 3) system vs. subsystem
    • 4) serve at least one purpose
  4. what is an information system
    the set of formal procedures by which data are collected, procedded into information and distributed to users
  5. what is a transaction? what are the two types of transactions?
    • 1) a transaction is an event that affects or is of interest to the organization and is procedded by its information system as a unit of work
    • 2) types: financial and nonfinancial
  6. the three major subsystems of AIS
    • 1) transaction processing system (TPS)
    • 2) general ledger/ financial reporting system (GL/FRS)
    • 3) management reporting system (MRS)
  7. transaction processing system
    supports daily business operations with numerous reports, documents and messages
  8. gernal ledger/financial reporting system
    produces the traditional finanacial statements
  9. management reporting system
    • provides internal managemetn with special-purpose financial reports and information needed for decision making
    • i.e. budgets, variance reports and repsonsibility reports
  10. what is data
    are facts, whcih may or may not be processed and have no direct impact of the end user
  11. information
    causes the user to take an action that he or she otherwise could not, or would not, have taken. more simply, processed data
  12. steps in the AIS model
    • 1) data collection
    • 2) data processing<-->database management
    • 3) information generation
    • 4) feedback/external end users
  13. the three fundemental objectives common to all systems
    • 1) to support the stewardship of management
    • 2) to support management decision making
    • 3) the support the firms day-to-day operations
  14. turnkey systems
    are completely finisked and tested systems that are read for implementation. usually purchased
  15. backbone systems
    consist of a basic system stucture on which to build. the logic is preprogrammed and is tailored to suit the business
  16. vendor-supported systems
    are custom system the client organizations purchase commercially rather than develop in house
  17. materials management subfunctions (3)
    • 1) purchasing--ordering inventory
    • 2) receiving--accepting the inventory
    • 3) stores--takes custody of the inventory
  18. production function subfunctions
    • 1) production planning--scheduling
    • 2) quality control
    • 3) maitenance
  19. centralized data processing
    all data processing is performed by one ore more large computers housed at a central site that serves users throughout the organization
  20. distributed data processing (DDP)
    reorganizing the IT finction into small information processing units (IPU) that are distributed to end users and placed under their control
  21. DDP disadvantages
    • 1) loss of control
    • 2) inefficient use of resources
    • 3) destruction of audit trails
    • 4) increased potenial for errors, failures and the lack of standards
  22. DDP advantages
    • 1) cost savings
    • 2) increased user satisfaction
    • 3) operational efficiency
  23. the flat-file model (legacy systems)
    an environment in which individual data files are not related to other files. end users own their own data. involve large mainframe computers
  24. problems with the flat-file model
    • 1) data storage-multiply storage to share documents
    • 2) data updating-increased cost due to separate files
    • 3) currency of information-outdated info
  25. database model
    centralizes the organizations data into a common database that is shared by other users
  26. the REA model
    an accounting framework for modeling an organizations critical resources, events and agents (REA) and the relationships between them
  27. enterprise resource planning (ERP)
    • an information system model that enables an organization to automate and integrate its key business processes.
    • 1) allows data sharing, information flows, common business practices
  28. what are the 3 transaction cycles
    • 1) revenue
    • 2) expenditure
    • 3) conversion
  29. expenditure cycle (4 systems)
    • A) the acquisition of materials, property, and labor in exchange of cash
    • 1) accounts payable system
    • 2) cash disbursements system
    • 3) payroll system
    • 4) fixed asset system
  30. conversion cycle (2 subsystems)
    • a) raw materials to finsihed products
    • 1) production system-planning, scheduling, and control
    • 2) cost accounting system-monitors the flow of cost information related to production
  31. revenue cycle (2 subsystems)
    • A) processing cash sales, credit sales and the receipt of cash
    • 1) sales order processing-credits
    • 2) cash receipts
  32. source documents
    are used to capture and formalize transaction data that the transaction cycle needs for processing
  33. product documents
    are the result of transaction processing rather than the triggering mechanism for the process
  34. turnaround documents
    are product documents of one system that become source documents for another system
  35. 4 different types of files
    • 1) master file
    • 2) transaction file
    • 3) reference file
    • 4) archive file
  36. master file
    generally contains account data. updated from transactions
  37. transaction file
    is a temporary file of transaction records used to change or update data in a master file
  38. reference file
    stores data that are used as standards for processing transactions
  39. archive file
    contains records of past transactions that are retained for future reference
  40. data flow diagram (DFD)
    uses symbols to represent the entities, processes, data flows and data stores that pertain to a system
  41. entity relationship (ER) diagram
    is a documentation technique used to represent the relationship between entities
  42. system flowchart
    is the graphical representation of the physical relationships among key elements of a system
  43. batch
    is a group of similar transactions that are accumulated over time and then processed together
  44. advantages to batch processing
    • 1) improve operational efficiency
    • 2) provides control over the transaction process
  45. batch systems
    assemble transactions into groups for processing. there is always a time lag
  46. real-time systems
    process transactions individually at the moment the event occurs
  47. types of coding schemes
    • 1) sequential codes
    • 2) block codes
    • 3) group codes
    • 4) alphabetic codes
    • 5) alphanumeric codes
    • 6) mnemonic codes
  48. sequential codes
    • represent items in some sequential order
    • 1) advantages-gaps in numbers alerts management
    • 2) disadvantages-carry no info beyond the order
  49. block codes
    • is a variation on sequential coding that partly remedies. includes a chart of accounts
    • 1) advantages-insertion of new codes
    • 2) content not readily apparent
  50. group codes
    • used to represent complex items or events involving two or more pieces of related data
    • 1) advantages
    • a) facilitate the representation of large amounts of data
    • b) allow complex data structures to be represented in hierarchal form
    • c) detailed analysis
    • 2) disadvantages-over used
  51. alphabetic codes
    • can be the same as numeric codes
    • 1) advantages- capacity to represent large numbers of items increases dramatically
    • 2) disadvantages-difficulty rationaling the meaning
  52. mnemonic codes
    • alphabetic characters in the form of acronyms anf other combinations to convey meaning
    • 1) advantages-does not require the user to memorize meaning
    • 2) disadvantages-limited ability to represent items within a class
Card Set:
AIS test 1
2011-09-14 03:02:42
AIS data diagrams flow charts ethics flynn

AIS chapters 1-3: test 1
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