ACC200 Ch7 Set 1 Flashcards Preview

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Flashcards in ACC200 Ch7 Set 1 Deck (20):
1

Transforming Data to Information to Business Technology?

Fig7.1 pg259

2

Relational databases are well suited for?

storing data

3

Intelligence tools are better suited for?

data analysis to create business intelligence

4

Three main functions of the accounting system?

1) store accounting data

2) analyse accounting data to use in decision making

3) safeguard the accounting data

5

Data mining

uses mathematical algorithms to find patterns, trends, & relationships among data, such as customer purchasing patterns

6

Predictive modeling

uses mathematcal algorithms to predict future trends, such as future customer purchases

7

Accounting system functions: store, analyse & safeguard data

Fig7.2

8

Three types of business decisions

1) routine operational decision (structured decisions)

2) tactical decisions (semi-structured decisions)

3) strategic decisions (unstructured decisions)

9

Routine operational decisions?

are recurring & typically relate to ongoing business operations

10

Tactical decisions

typically short term, impacting one year or less

11

Strategic decisions

usually long term in nature & structure with a high degree of ambiguity

12

Integrative decision model (IDM)

provides a framework to structure & organise the decision making process

13

Integrative decision model (IDM) template

Fig7.3 pg262

14

IDM consists of seven steps as a framework for the decision-making & evaluating process

1) define the opportunity or issue

2) identify options to address the opportunity or issue

3) analyse quantitative (financial) factors

4) analyse qualitative (nonfinancial) factors

5) make recommendation and/or decision

6) implement decision

7) evaluate performance

15

Integrative Decision Model (IDM)

Fig7.4 pg262

16

Shadow data

used when data is stored in spreadsheets & other tools that shadow the formal accounting system

17

Business intelligence (BI) technologies

include analytics, data mining, & predictive modeling; typically under the control of the enterprise's IT professionals

18

Four components in an intelligence enterprise system are

1) data storage

2) data extraction

3) data analysis

4) data visualisation

19

Intelligence System Components

Fig7.8 pg266

20

Data storage

data is stored using operational databases, data warehouses, & other data storage