Accounting Information Systems and Business Processes:
The human resource management process is the same thing as the payroll process.
The production process is only present in service organizations.
The primary objective of the production process is to minimize the use of raw materials
in the production process.
An AIS’s cost accounting subsystem is an important part of the production process.
Inputs to the production process include job time cards, material requisition forms, and
the master production schedule.
With a job costing system it is
possible to keep track of costs for each item or group
of items produced.
With a just-in-time inventory approach, raw material inventories are always zero.
The bill of materials lists the types and quantities of parts needed to assemble each unit
Production cost reports are useful for internal control since they help in calculating
The financing process concerns a company’s acquisition and use of financial resources.
Effective cash management is
an objective of the financing process.
Financial planning models are useful to financial managers in helping them to determine
an optimal strategy for acquiring and investing an organization’s financial resources.
Deposit slips and remittance advices are examples of source documents associated
with the financing process.
A cash budget is a primary output of the financing process.
The term vertical market refers to software distribution processes.
Time and billing features in accounting software are important to engineering, legal, and
One distinguishing feature of organizations in the professional service industry is the
difficulty in measuring the quantity and quality of their output.
Not-for-profit organizations focus primarily on the flow of funds rather than income in
their internal accounting systems.
Point-of-sale accounting systems are important in the health care industry.
Third party billing refers to the payment of many health care bills by insurance
companies rather than by patients.
The AIS for the health care industry is particularly complex due to third party billing.
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