ACTY 3130 - Chapter 1 Homework PDF

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Chapter 1 Homework September 18, 2016 Chapter 1 Quiz 1. Data differs from information in which way? b. Information is output, and data are input 2. Which of the following is NOT a characteristic that makes information useful? c. It is inexpensive 3. Which of the following is a primary activity in the value chain? c. Post Sales Service 4.

Which transaction cycle includes interactions between an organization and its suppliers? b. Expenditure cycle

5.

Which of the following is NOT a means by which information improves decision making? a. Increases information overload 6. In the value chain concept, upgrading IT is considered what kind of activity? b. Support activity 7. In which cycle does a company ship goods to owners? c. Revenue cycle 8. Which of the following is a function of an AIS? b. Transforming data into useful information 9. A firm, its suppliers, and its customers collectively form which of the following? a. Supply chain 10. A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process? b. Acquiring inventory

Discussion Question 1.5 with Example This implies that an innovative system developed by one company cannot be transferred to another company and be expected to realize the same outcomes. Figure 1-4 shows that the business strategy impacts the Accounting Information and each company has their own unique business strategy. Figure 1-4 also shows that organizational culture affects the AIS and organizational culture is another part of each company that is unique. Since the organizational culture and business strategies of each company are different and play a major role in influencing the AIS, when an innovative system is transferred it will have to be adjusted to fit the new company. The new company could try to align its organizational culture to the previous company, but Figure 1-4 shows that organizational culture influences AIS and AIS influences the organizational culture. This means that they interact with one another and still would mean that when a system is transferred, only a small degree will transfer with the same impact.

An example of how this would work is if Adobe developed an innovative system and wanted to transfer it to Zappos. Adobe has a very distinct organizational culture that involves offering their employees lots of perks and encouragement for new innovation. One of the most important parts of its organizational culture is the value of communication throughout the entire company, so that departments are always on the same page. They are very deliberate about their actions to support the organizational culture they have developed. Since organizational culture plays such an important role in the design of an AIS, their innovative AIS would have been accepted in a particular way based on their culture. Also, the AIS itself would have influenced their culture and made it what it is today. When going to transfer this AIS to Zappos, they would only be able to transfer a small degree of the very innovative AIS that was designed for Adobe. Zappos’ organizational culture is very different than Adobe. They are very focused on customer service, so they focus on hiring the best employees and have intense training sessions about their culture. They try get to their employees to embrace their individual spirits and have a very fun work environment, while striving to meet very high standards. The acceptance of an AIS built for a culture completely different for Zappos would be hard and would require a lot of changes. Also, by transferring this innovative system it would affect their organizational culture just as much as the organizational culture would affect the system itself. This means an innovative system that had dramatic positive results at Adobe could have much different results at Zappos. Transferring innovative systems can’t be done 100% like a transfer of a Microsoft Word program would be completely. Before attempting any transfer, companies should be aware of the dynamic relationship featured in Figure 1-4. Problem 1.4 Matching Relevant = f. An accounts receivable aging report is used in credit-granting decisions Reliable = e. A report was checked by three different people for accuracy Complete = d. An accounts receivable aging report included all customer accounts Timely = g. An accounts receivable aging report was received before the credit manager had to make a decision whether to extend credit to a customer 5. Understandable = a. The report was carefully designed so that the data contained in the report became information to the reader 6. Verifiable = c. The data in a report was checked by two clerks working independently 7. Accessible = b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network 1. 2. 3. 4.

Problem 1.8 a. Purchase Raw Materials = Expenditure Cycle b. Pay off mortgage on a factory = Financing Cycle c. Hire a new assistant controller = Human Resources/Payroll Cycle d. Establish a $10,000 credit limit for a new customer = Revenue Cycle e. Pay for raw materials = Expenditure Cycle f. Disburse payroll checks to factory workers = Human Resources/Payroll Cycle g. Record goods received by a vendor = Expenditure Cycle h. Update the allowance for doubtful accounts = Revenue Cycle i. Decide how many units to make next month = Production Cycle j. Complete a picking ticket for a customer order = Revenue Cycle k. Record factory employee timecards = Human Resources/Payroll Cycle

l. m. n. o. p. q. r. s. t. u. v. w.

Sell concert tickets = Revenue Cycle Draw a line of credit = Financing Cycle Send new employees to a business ethics course = Human Resources/Payroll Cycle Pay utility bills = Expenditure Cycle Pay property taxes on an office building = Expenditure Cycle Pay federal payroll taxes = Human Resources/Payroll Cycle Sell a DVD player = Revenue Cycle Collect payments on customer accounts = Revenue Cycle Obtain a bank loan = Financing Cycle Pay sales commissions = Human Resources/Payroll Cycle Send an order to a vendor = Expenditure Cycle Put purchased goods into the warehouse = Expenditure Cycle...