System
2 or more interrelated components that interact to achieve a goal, often composed of subsystems that support the larger system
goal conflict
when a subsystems goals are inconsistent with the goals of another subsystem or the system as a whole
goal congruence
when a subsystem achieves its goals while contributing to the organizations overall goal
data
facts that are collected, recorded, stored, and processed by a system
information
data that have been organized and processed to provide meaning and improve decision making
information overload
exceeding the amount of information a human mind can absorb and process, resulting in a decline in decision making quality and an increase in the cost of providing info
informational technology (IT)
the computers and other electronic devices used to store, retrieve, transmit and manipulate data
value of information
the benefit provided by info less the cost of producing it
business process
a set of related, coordinated, and structured activities and tasks, performed by a person, a computer, or a machine that help accomplish a specific organizational goal
transaction
an agreement between 2 entities to exchange good or services, such as selling inventory in exchange for cash; any other event that can be measured in economic terms by an org
transaction processing
process of capturing transaction data, processing it, storing it for later use, and producing info output, such as a managerial report or a financial stmt
give-get exchange
transactions that happen a great many times, such as giving up cash to get inventory from a supplier and giving employees a paycheck in exchange for their labor
business processes or transaction cycles
the major give-get exchanges that occur frequently in most commpanies
revenue cycle
activities associated with selling goods and services in exchange for cash or a future promise to receive cash
expenditure cycle
activities associated with purchasing inventory for resale or raw materials in exchange for cash or a future promise to pay cash
production or conversion cycle
activities associated with using labor, raw materials and equipment to produce finished goods
human resources/payroll cycle
activities associated with hiring, training, compensating, evaluating, promoting, and terminating employees
financing cycle
activities associated with raising money by selling shares in the company to investors and borrowing money as well as paying dividends and interest
general ledger and reporting system
information-processing operations involved in updating the gl and preparing reports for both management and external parties
accounting information system
a system that collects, records, stores, and processes data to produce information for decision makers. It includes people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures
value chain
linking together of all the primary and support activities in a business. value is added as a product passes through the chain
primary activities
value chain activities that produce, market, and deliver products and services to customers and provide post-delivery service and support
support activities
value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to be performed efficiently and effectiviely
supply chain
an extended system that includes an organizations value chain as well as its suppliers, distributors, and customers
