Figure 1-4 shows that developments in IT affect both an organizations
strategy and the design of its AIS. How can a company determine whether it
is spending too much, too little, or just enough on IT?
There is no easy answer to this question. Although
2.8 Which of the following actions update a master file and which would be
stored as a record in a transaction file?
Update customer address change
Update unit pricing information
2.1 Bar Harbor Blueberry Farm
Data from Case
Supplier Supplier Name
Buds Soil Prep, Inc.
PO Box 34
March 11 14568
Osto Farmers Supply
March 14 893V
Whalers Fertilizer, Inc.
The value of information is the difference between the benefits realized from
using that information and the costs of producing it. Would you, or any
organization, ever produce information if its expected costs exceeded its
benefits? If so, provide so
Information technology enables organizations to easily collect large amounts
of information about employees. Discuss the following issues:
These questions involve traditional economic cost/benefit issues and less welldefined ethical issues.
a. To what
2.5 Match the following terms with their definitions
_10_ a. data processing
1. Contains summary-level data for every asset, liability,
equity, revenue, and expense account
_23_ b. source documents
2. Items are numbered consecutively to ac
2.3 An audit trail enables a person to trace a source document to its ultimate
effect on the financial statements or work back from amounts in the financial
statements to source documents. Describe in detail the audit trail for the
a. The audit
2.4 Your nursery sells various types and sizes of trees, bedding plants,
vegetable plants, and shrubs. It also sells fertilizer and potting soil. Design
a coding scheme for your nursery.
Grading depends upon the instructors judgment about the quality of t
2.6 For each of the following scenarios identify which data processing method
(batch or online, real-time) would be the most appropriate.
Some students will respond that all can and ought to be done with online-real time
processing. While all can certainl
After viewing the Web sites, and based on your reading of the chapter, write
a 2 page paper that describes how an ERP can connect and integrate the
revenue, expenditure, human resources/payroll, and financing cycles of a
Student solutions wi
2.9 You were hired to assist Ashton Fleming in designing an accounting
system for S&S. Ashton has developed a list of the journals, ledgers,
reports, and documents that he thinks S&S needs (see Table 2-6). He
asks you to complete the following tasks:
2.2 Design a chart of accounts for SDC. Explain how you structured the chart of
accounts to meet the companys needs and operating characteristics. Keep
total account code length to a minimum, while still satisfying all of Maces
(Adapted from the
2.2 With respect to the data processing cycle, explain the phrase garbage in,
garbage out. How can you prevent this from happening?
When garbage, defined as errors, is allowed into a system that error is processed
and the resultant erroneous (garbage) dat
The Web site for this book contains an adaption of Russell L. Ackoffs classic article
Management Misinformation Systems from Management Science. In the article,
Ackoff identified five common assumptions about information systems and then
Can the characteristics of useful information listed in Table 1-1 be met
simultaneously? Or does achieving one mean sacrificing another?
Several of the criteria in Table 1.1 can be met simultaneously. For example, more
timely information is also likel
You and a few of your classmates decided to become entrepreneurs. You
came up with a great idea for a new mobile phone application that you think
will make lots of money. Your business plan won second place in a local
competition, and you are using th
How do an organizations business processes and lines of business affect
the design of its AIS? Give several examples of how differences among
organizations are reflected in their AIS.
An organizations AIS must reflect its business processes and its li
Apply the value chain concept to S&S. Explain how it would perform the
various primary and support activities.
The value chain classifies business activities into two categories: primary and
The five primary activities at S&S:
a. Inbound logi
2.1 Table 2-1 lists some of the documents used in the revenue, expenditure, and
human resources cycle. What kinds of input or output documents or forms
would you find in the production (or conversion) cycle?
Students will not know the names of the documen
2.4 The data processing cycle in Figure 2-1 is an example of a basic process
found throughout nature. Relate the basic input/process/store/output model
to the functions of the human body.
There are a number of ways to relate the input/process/store/output
2.3 What kinds of documents are most likely to be turnaround documents? Do
an internet search to find the answer and to find example turnaround
Documents that are commonly used as turnaround documents include the
2.1 The chart of accounts must be tailored to an organizations specific needs.
Discuss how the chart of accounts for the following organizations would
differ from the one presented for S&S in Table 2-2.
Some of the changes in the chart of accounts for eac
Figure 1-4 shows that organizational culture and the design of an AIS
influence one another. What does this imply about the degree to which an
innovative system developed by one company can be transferred to another
Since people are one of th