Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 10.1
Chapter 10
ACCOUNTING INFORMATION SYSTEMS AND BUSINESS
PROCESSES:
PART I
Discussion Questions
10-1. Answers to this question will vary depending on the type of firm the student intends
pets, inventory, employees, appointments, payroll, networking, and much more. 123Pet dog
10-2. Among the uses of accounting codes are the following: (1) to uniquely identify
special meanings (e.g., codes can be used to indicate such things as credit ratings, credit limits,
identification numbers, and so on.
10-3. There are many outputs of an AIS. These outputs come in a variety of formats
including hard copy reports, screen displays, audio, images, tape, and diskette. AIS outputs
current account information.
Systems analysts need to begin with outputs in designing an AIS. The outputs dictate what data
10-4. Some criteria that should be considered when designing managerial reports are
learn what to include in reports by interviewing the report users, studying business processes,
studying documentation, and studying existing reports.
10-5. Note to Instructor: Responses will vary by student, type of organization visited, and
SM 10.2
10-6. When data entry clerks add a new customer to an AIS, data items to be entered
authorized signatures, detailed information about items ordered including quantity, price,
description, and salesperson number.
10-7. Data flow diagrams are logical descriptions of a system whereas systems flowcharts
capture a physical view of the system. The data flow diagram would show processes, similarly
depicted in manual files, disk files, tape files, documents, etc. Both flowcharts and data flow
diagrams may be designed to show increasing levels of detail. For instance, a context data flow
process for the revenue cycle.
10-8. Both restaurants and car manufacturers are manufacturing organizations. They take
raw materials, process them, and produce finished goods. However, the car manufacturer will
similar. They would consist primarily of purchase requisitions and purchase orders. One
difference worth mentioning is that a car manufacturer is likely to be closely linked to suppliers –
10-9. Business-without-boundaries is the term given to an organization that has outsourced
one or several business functions. The organization may have outsourced the function to another
experiences seamless service from the firm. As an example, Amazon.com (headquartered in
Seattle, WA) outsourced (offshored) some of their customer service function to a company in
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 10.3
As a result of improved technology, networks and improved communications capabilities,
companies can interact with each other in new and different ways to provide better, more
customers.
10-10. This means that companies have outsourced one or more business functions
compete with India for this offshore business – such as Russia, the Philippines, Ireland, Israel,
and China.
10-11. Students might strongly agree or disagree with these claims regarding the availability
of qualified IT personnel. However, the responses they give should be based on their research
are required to “support” the claims and the other half of the students must find support to refute
the claims. A mock debate can be used to bring out both sides of this issue. In this case, 2-3
opinions.
A web site that discusses IT Offshoring and the impact on employees is:
http://www.mckinsey.com/mgi/rp/offshoring/
10-12. One interesting new use of RFID tags is for passports. The US Government believes
considered a VIP at a beach club in Spain.
10-13. For a list of the “Top 15 Weirdest, Funniest, and Scariest Uses of RFID”, visit the
following website: http://www.rfidgazette.org/2007/04/top_15_weirdest.html
issues surrounding RFID tags.
Advantages:
SM 10.4
university buildings
convenience (like the smart passes for cars to pass quickly through toll gates)
Disadvantages:
be violated
from a manufacturing perspective, the primary concern is the cost of the tags
10-14. While a number of sources are available to help students respond to this question, we
selected this site: http://www.buzzle.com/articles/outsourcing-pros-and-cons.html
(a) Some of the potential positive aspects of outsourcing are:
Lower Operating Costs: Outsourcing to countries like India has helped lower operating costs.
India has a well-educated population where people are more than willing to provide the desired
service for a fraction of the cost as compared to domestic workers.
Corporate Tax Breaks: According to U.S. laws, a company can defer paying taxes on profits
earned abroad as long as the profits are not remitted to the parent company located in the U.S.
Moreover, the deferral period can be extended indefinitely.
Expert Advice: According to the theory of core competence, an organization would do well to
focus on its main or core operations and outsource activities that are of an operational nature.
This would help the company maintain its competitive advantage, improve efficiency, and
consequently increase profits.
Workforce Flexibility: With outsourcing, you may employ a larger workforce as and when
tasks become demanding. Additional workforce is employed temporarily, thus the question of
the additional personnel being on permanent payroll does not arise.
Time-zone Variation: While you wrap up for the day in Asia, the west gets ticking to work.
This is where outsourcing plays a major role, especially when your business demands work
around the clock.
SM 10.5
(b) Some of the potential negative aspects of outsourcing are:
Offshoring White-collar Jobs: It has been estimated that by the year 2015 nearly 3.3 million
U.S. white-collar jobs will be offshored by the U.S., and nearly $136 billion worth of wages will
be lost.
Loss of Control: The organization to which you outsource a particular job may not adhere to
your standards. While you have a contract in place, the decisions pertaining to their management
would not be governed by your organization.
Lagging In-house Talent: Outsourcing might take job opportunities from current employees.
Using in-house resources boosts morale of existing employees.
10-15. Students might express various opinions regarding the practice of outsourcing and its
potential impact on them and their career. We suggest that students review Discussion Question
should consider.
In general, students should always be building their intellectual capital in expectation of a
Network at all business and professional meetings
Attend useful conferences to build skills and network
10-16. The answer is “Yes, of course!” Some examples include: house cleaning, lawn
work, childcare services, pizza or food delivered to the person’s home. Most likely, students will
identify a number of additional services.
SM 10.6
Problems
10-17.
10-18. A group code of the following format is recommended for Novelty Gadgets:
where:
L = product line (1=toys and games, 2=party and magic tricks, 3=gifts)
SSS = subproduct code (numeric)
sales transaction takes place.