ACC200 Ch7 Set 1

Question 1

Transforming Data to Information to Business Technology?

Answer 1

Fig7.1 pg259

Question 2

Relational databases are well suited for?

Answer 2

storing data

Question 3

Intelligence tools are better suited for?

Answer 3

data analysis to create business intelligence

Question 4

Three main functions of the accounting system?

Answer 4

1) store accounting data
2) analyse accounting data to use in decision making
3) safeguard the accounting data

Question 5

Data mining

Answer 5

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

Question 6

Predictive modeling

Answer 6

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

Question 7

Accounting system functions: store, analyse & safeguard data

Answer 7

Fig7.2

Question 8

Three types of business decisions

Answer 8

1) routine operational decision (structured decisions)
2) tactical decisions (semi-structured decisions)
3) strategic decisions (unstructured decisions)

Question 9

Routine operational decisions?

Answer 9

are recurring & typically relate to ongoing business operations

Question 10

Tactical decisions

Answer 10

typically short term, impacting one year or less

Question 11

Strategic decisions

Answer 11

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

Question 12

Integrative decision model (IDM)

Answer 12

provides a framework to structure & organise the decision making process

Question 13

Integrative decision model (IDM) template

Answer 13

Fig7.3 pg262

Question 14

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

Answer 14

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

Question 15

Integrative Decision Model (IDM)

Answer 15

Fig7.4 pg262

Question 16

Shadow data

Answer 16

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

Question 17

Business intelligence (BI) technologies

Answer 17

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

Question 18

Four components in an intelligence enterprise system are

Answer 18

1) data storage
2) data extraction
3) data analysis
4) data visualisation

Question 19

Intelligence System Components

Answer 19

Fig7.8 pg266

Question 20

Data storage

Answer 20

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