Read the summary and the most important questions on AIS [ABN]

• 1 Lecture 1

• 1.1 1. Recognize the information flows within a company

• What is operations management, middle management and top management?

  Operations management

  - Controlling day to day operations, required information is highly detailed: sales, shipping, usage of labor and materials and internal transfers of resources.

  Middle Management

  - Short term planning and coordination of activities necessary to accomplish organizational objectives, required information is more aggregate.

  Top Management
  - Long term planning and setting of organizational objectives, required information is summarizing overall firm performance. 

• What kind of information do trade partners and stakeholders need?      

  The form of information trade partners need restricts itself to customer sales and billing information, purchase and inventory (receipts) information. Stakeholders demand another type of information which mainly has a financial nature (financial statements, tax returns, stock transaction information). 

   

• What are the internal, external, horizontal and vertical information flows?    

  Horizontal; for the specific management function or operational personnel
  Vertical flows; Budget information and instructions from top to bottom & performance information from bottom to top.
  Internal; horizontal and vertical flows
  External; information between the company and stakeholders, suppliers and customers. 

• 1.2 2. Understand the difference between AIS and MIS

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• What is an information system and its main objectives?

  An information system is the set of formal procedures by which data are collected, processed into information and distributed to its users.

  Overall there are three main objectives to be identified for information systems:

  - Support the stewardship function of management
  - Support management decision making
  - Support firms’ day to day operations 

• What is an AIS and MIS?

  Accounting Information Systems (AIS) process
  - financial transactions; e.g., sale of goods
  - nonfinancial transactions that directly affect the processing of financial transactions; e.g.,addition of newly approved vendors

  Management Information Systems (MIS) process
  - nonfinancial transactions that are not normally processed by traditional AIS; e.g., tracking customer complaints 

• 1.3 3. Remember the basic accounting records used in transaction processing systems

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• What is the transaction processing system and what does it consist of?

  The transaction processing system is central to the overall function of the information system by converting economic events in to financial transactions, recording financial transactions in the accounting records (journals and ledgers) and distributing essential financial information to operations personnel to support their daily operations. The TPS consists out of three transaction cycles: Revenue cycle, expenditure cycle and conversion cycle. 

• What is a transaction?  

  A transaction is an economic event that affects the assets and equities of the firm, is reflected in its accounts and is measured in monetary terms. 

• What are the files used in a digital system in the TPS?

  - Master file
  o A master file contains account data, the GL and SL are examples of master files.

  - Transaction file
  o Is a temporary file of transaction records used to change or update data in a master file, sales orders, inventory receipts etc are examples of transaction records. 

  - Reference file

  o Stores data which is used as standards for processing transactions, e.g. tax table used by payroll program.

  - Archive file
  o Contains records of past transactions that are retained for future reference. 

• 1.4 4. Recognize the type of transactions processed by each of the three transaction cycles

• What are the type of transactions processed by each of the transaction cycles?

  Picture on p. 7

• 1.5 5. Classify organizations according to typology framework

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• What are the main elements of identification in the framework of typologies?

  1. Organizations with a dominant flow of goods

  2. Organizations without a dominant flow of goods