ACC200 Ch1 Set 2 Flashcards Preview

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Flashcards in ACC200 Ch1 Set 2 Deck (20):
1

When does goal congruence occur in a system?

when a subsystem achieves its goals while contributing to the organisations overall goal. The larger the organisation & the more complicated the system the more difficult it is to achieve goal congruence.

2

System aspects in designing a system?

- Simplicity - Performance - Economy -----> this results in good design

3

How can you define good design?

an absence of 'wrong things'

4

Data

a set of facts that are collected, recorded, stored & processed by an information system

5

Information

data that has been organised & processed to provide meaning & improve decision-making processes

6

Data overload

this occurs when there are limits to the amount of information a human mind can absorb and process are pasted. Resulting in a decline in decision-making quality & an increase in the cost of providing that information

7

Value of information

the benefit produced by the information minus the cost of producing it

8

Benefits of quality information

- reduced uncertainty - improved decision - improved ability to plan & schedule activities -----> resulting in lower organising costs

9

Information costs

the time & resources spent to produce, store & distribute information

10

Characteristic that make information useful & meaningful?

- relevant - reliable - existance - valid - complete - timely - measureable - understandable - verifiable - accessible

11

Characteristics of useful information?

viewed as the "wrongness" that must be avoided to achieve a good design system

12

Relevant

reduces uncertainty, improves decision-making, or confirms or corrects prior expectations

13

Reliable

free from error or bias; accurately represents organisations events or activities

14

Existence

the transactions, assets, obligations & equity generated in the system exist

15

Valid

only those transactions & reports that are authorised by the firm should be processed

16

Complete

does not omit important aspects of the events or activities it measures

17

Timely

provided in time for decision-makers to make decisions

18

Measureable

transactions, assets, liabilities, & equities processed in the system are measured accurately

19

Understandable

presented in a useful & intelligible format

20

Verifiable

two independent, knowledgeable people can produce the same information