BU486 Midterm: Accounting Information Systems - Pre-Midterm Textbook Notes

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15 Oct 2013
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Chapter 1 accounting information systems: an overview. System is a set of interrelated components that interact to achieve a goal: most are composed of smaller subsystems, each subsystem is created to achieve one or more organizational goals. Goal conflict is when a subsystem"s goals are inconsistent with other subsystems or those of the whole organization. Data are facts that are collected, recorded, stored, and processed by an info system: data is collected about activities that take place, people involved, etc. Information is data that has been organized and processed to provide meaning and improve the decision-making process: as quantity and quality of data increase, decision-making improves. Information overload is when too much info results in decline in decision making. Value of information is the benefit minus the cost of producing it: difficult to estimate. Characteristics of useful information: relevant, reliable, complete, timely, understandable, verifiable, accessible.