Systems Chapter 1
Customer Relationship Management is defined as:
A system used to manage and nurture a firm's interactions with its current and potential customers.
Support activities in the Value Chain do NOT include:
Accounting and Finance
Many hospitals and doctor's offices are beginning to digitize the medical records of their parents. This is an example of the _____________ strategic role.
Automate
The IT strategic roles of AIS investments are classified as:
Automate, informate, and Transform.
Which of the following systems would a company be most likely to employ for the primary purpose of generating additional sales revenue?
CRM
The income statement line item most likely affected by an AIS investment in supply chain that would interface with suppliers would be:
Cost of goods sold.
One of the most important way that ERPs benefit organizations and their business processes is:
Current information is made available to all users involved in the activities and decisions associated with a company's business processes.
Activity-based costing is an example of:
Discretionary information
Which of the following is NOT a characteristic of useful information?
Easy to understand
An example of an AIS primarily addresses internal business processes includes:
Enterprise systems
The Sarbanes-Oxley Act of 2002 requires that a company's attest auditors be able to perform which of the following activities?
Evaluate the internal controls in an AIS
A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.
FALSE
Accounting Information Systems at this date are all computerized.
FALSE
Accounting and Finance is a primary activity in the value chain.
FALSE
An enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients.
FALSE
Data is defined as being information organized in a meaningful way that is useful to the user.
FALSE
Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed.
FALSE
Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information.
FALSE
Relevant information is that information that is free from bias and error.
FALSE
The characteristics of reliable information are that the information is verifiable, without bias and timely.
FALSE
The main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.
FALSE
Which of the following are considered to be mandatory information required by a regulatory body?
Financial reports for the Securities and Exchange Commission
According to a recent study, the transform IT strategic role is defined as systems that:
Fundamentally redefine business processes and relationships.
The correct order of effects in the value chain are
Inbound Logistics>>>Operations>>>Outbound Logistics
Accounting information systems
Include records, processes and reports.
A dental practice implemented an upgrade to its AIS that provides the dentists with daily and weekly patients and financial summaries. The practice's upgrade is an example of which IT strategic role?
Informate-up
Bob's manager complains that Bob suffers from "Analysis Paralysis;" that is, he spends too much time reviewing endless reports and is reluctant to make decisions. Bob most likely suffers from ______
Information Overload
Which of the following is NOT a primary activity in the Value Chain?
Information Technology
Which of the following diagrams most accurately illustrates an information system?
Input>>> Process>>>Output
Which of the following most accurately describes IFAC'S description of accounting and IT?
It is difficult to conceive of accounting independent from IT.
Business Value is defined as:
Items, events and interactions that determine the financial health and well-being of the firm.
Consider the non-profit organization Doctors without Borders(Medecins Sans Frontieres), a Nobel Peace Prize winning organization that provides medical services in war zones and developing countries. For this type of organization, which of the following would likely be the best measure of business value?
Lives Saved
Discretionary information is most likely to be used in which of the following activities?
Management decision-making
Which of the following us usually the primary objective for companies when creating mandatory information?
Minimize cost
The role of accountants in accounting systems include all EXCEPT:
Operator
The primary transformation of data information takes place in which of the following activities?
Processing
A supply chain system does NOT include information about:
Prospective customers
According to a recent study, the informate-up IT strategic role is defined as systems that:
Provide information about business activities to senior management.
Effective use of Supply Chain software is generally expected to proved all of the following benefits EXCEPT:
Reduced gross margin
A supply chain:
Refers to the flow of materials, information, payments and services.
A simple information system includes all the following elements EXCEPT:
Reporting
The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be:
Revenues
The income statement line item most likely affected by an AIS investment in enterprise systems would be:
Selling, General and Administrative Expenses.
A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.
TRUE
A well-designed and well-functioned AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.
TRUE
An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial and nonfinancial information for decision making and control.
TRUE
An efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.
TRUE
An enterprise system is centralized database that collects data from throughout the firm. This includes data from orders, customers, sales, inventory, and employees.
TRUE
Business value includes all those items, events and interactions that determine the financial health and well-being of the firm.
TRUE
CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships.
TRUE
Information is defined as being data organized in a meaningful way that is useful to the user.
TRUE
Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.
TRUE
Service Activities as defines in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.)
TRUE
The Sarbanes-Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all U.S. public companies, their management and public accounting firms.
TRUE
The characteristics of relevant information include predictive value, feedback value and timeliness.
TRUE
The information Value Chain defines as:
The overall transformation of data from a business need to the ultimate decision.
One common way of measuring effectiveness of the Supply Chain is through the fill rate. Which of the following best describes the fill rate?
The percentage, in monetary value, of a supplier's order which is actually delivered to the organization.
EBay uses information technology to sell goods on the internet. This would be an example of the _________ strategic role.
Transform
Investors reward companies most that announce IT initiatives with which type of strategic role?
Transform
