AIS Exam study guide

AIS Exam study guide - Manufacture: making of goods by...

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Manufacture : making of goods by manual labor or machinery. Fabrication from materials Produce: create, make, or manufacture. Bring forth, make or cause Industry : systematic work or labor especially in productive arts or manufacturing Trade : practice of some occupation, business or profession (often skilled handicraft as opposed to “learned profession”) as a means of livelihood Commerce : exchange of products of nature or art Profession : vocation requiring knowledge of learning, science, or skills Practice : exercise or pursuit of a profession What is business? Trade, commercial transactions or engagements; activity of providing goods and services involving financial, commercial, and industrial aspects Organizations : (working definition)Organizations are transmutative social entities forming goal- directed structured activity systems. Organizations create value through managing their business and information processes. At the heart of managing is the decisionmaking involved in planning, executing, controlling and evaluating the organization’s business and information processes Transmutative : having the quality of altering or changing in nature, properties, appearance or form What do organizations do? (According to Michael Porter) everything an organization does should contribute to the creation of value for its customers. “margin” can be defined as the difference between value and costs; however, this includes ALL value and ALL costs Enterprise : An organization established to achieve a particular undertaking. It may be, but need not be, commercial. Often is used as a term for a large(commercial) organization Management Activites: Organizations’ three main types of business processes (sometimes called business cycles: Acquisition/expenses/payment process Conversion process Sales/collection process Information process: Recording Maintaining Reporting Value Chain Analysis: Primary Activities: Inbound Logistics Operations Outbound Logistics Marketing & Sales Services Secondary Activities: Procurement, Technological Development, Human Resources, Management, Infrastructure Working definition of organizations: organizations are transmutative social entities forming goal- directed structured activity systems What is a process? A process is a time-dependent sequence of steps governed by a rule called process law. All processes have five common ingredients: The entities participating in the process The elements describing the steps in a process (called events in business processes) The relationships between these elements The links to other processes
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The resource characteristics of the elements Business Solution Framework: Purpose of Accounting is to provide information used in decision making. Accounting may be viewed as a system (a process) that converts data into useful information. The role of the accounting professional is in deciding:
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AIS Exam study guide - Manufacture: making of goods by...

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