Last Updated 25 May 2020

Accounting Information Sytems

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Wikipedia: An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities. The actual physical devices and systems that allows the AIS to operate and perform its functions 1. Internal controls and security measures: what is implemented to safeguard the data

2. Model Base Management

The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities. An accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system: People - the system users.

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Procedure and Instructions - methods for retrieving and processing data. Data - information pertinent to the organization's business practices. Software - computer programs used to process data.

Information Technology Infrastructure - hardware used to operate the system. Internal Controls - security measures to protect sensitive data.


Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.

In contrast to financial accountancy information, management accounting information is: primarily forward-looking, instead of historically model based with a degree of abstraction to support decision making generically, instead of case based; designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators; usually confidential and used by management, instead of publicly reported; computed by reference to the needs of managers, often using management information systems, instead of by reference to general.

The process of preparing management reports andaccounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics. Also called managerial accounting.


This course examines the components and processes of the strategic management model, using examples from Canada and the United States. Students learn to do case analysis throughout the course. Topics covered include strategic management, social responsibility, environmental and internal analysis and diagnosis, strategy selection, and implementation and evaluation After completing this course, students should be able to:

Perform a rigorous analysis of a company's strategic direction. Identify and explain a company's mission and vision statement and relate and critique these statements to the company's strategic direction. Prepare a SWOT (strengths, weakness, opportunities, and threats) analysis and explain and evaluate the relationship between the SWOT and a company's strategic direction. Identify and explain all micro and macro forces that shape a company's strategic plan and determine performance. Analyze and evaluate all the steps for the proper alignment of financial and non-financial resources within a company's strategic plan.

Analyze a company's strategic plan in the context of the industry life cycle and environment in which it operates. Analyze, evaluate, and draw conclusions on the effectiveness and performance of control and integration mechanisms. Establish metrics to assess and measure strategic performance. Analyze and evaluate the company's communication and feedback loop relative to company strategy and performance.

Analyze, evaluate, and draw conclusions on the financial performance relative to the company's strategic plan. Analyze, evaluate, and identify risks and risk mitigation strategies appropriate to the company's strategic direction. Analyze, evaluate, and develop strategies for a single or multi-business organization. Assess, analyze, and recommend changes to company strategy based on a full analysis of a company's strategic plan. Develop and prepare a strategic review document presented in a consistent form and properly documented.


Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.The process in the above diagram is often referred to as the "Conversion Process". There are several different methods of handling the conversion or production process - Job, Batch, Flow and Group. POM incorporates many tasks that are interdependent, but which can be grouped under five main headings:


Marketers in a business must ensure that a business sells products that meet customer needs and wants. The role of Production and Operations is to ensure that the business actually makes the required products in accordance with the plan. The role of PRODUCT in POM therefore concerns areas such as:

- Performance
- Aesthetics
- Quality
- Reliability
- Quantity
- Production costs
- Delivery dates


To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the fixed assets of the business. In determining which PLANT to use, management must consider areas such as: - Future demand (volume, timing)

- Design and layout of factory, equipment, offices
- Productivity and reliability of equipment
- Need for (and costs of) maintenance
- Heath and safety (particularly the operation of equipment) - Environmental issues (e.g. creation of waste products)


There are many different ways of producing a product. Management must choose the best process, or series of processes.

They will consider: - Available capacity
- Available skills
- Type of production
- Layout of plant and equipment
- Safety
- Production costs
- Maintenance requirements


The production PROGRAMME concerns the dates and times of the products that are to be produced and supplied to customers. The decisions made about programme will be influenced by factors such as: - Purchasing patterns (e.g. lead time)

- Cash flow
- Need for / availability of storage
- Transportation


Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-related decisions will consider the following areas: - Wages and salaries
- Safety and training
- Work conditions
- Leadership and motivation
- Unionisation
- Communication


Good governance is about the processes for making and implementing decisions. It’s not about making ‘correct’ decisions, but about the best possible process for making those decisions.Good decision-making processes, and therefore good governance, share several characteristics. All have a positive effect on various aspects of local government including consultation policies and practices, meeting procedures, service quality protocols, councillor and officer conduct, role clarification and good working relationships.

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Accounting Information Sytems. (2016, Aug 08). Retrieved from

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