ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
1.1 Discuss the concept of a system and the issues of goal conflict and goal congruence.
A system is a set of two or more component
...
ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
1.1 Discuss the concept of a system and the issues of goal conflict and goal congruence.
A system is a set of two or more components that are somehow interrelated and interact together to
achieve a specific goal. A system usually consists of smaller components called subsystems. These
subsystems have specific and defined functions, which interact with and support the larger system.
The concept of systems is key to information technology and AIS. All systems, including the AIS,
must work to achieve one or more organizational goals. Goal conflict results when a decision or
action of a subsystem is inconsistent with another subsystem or the system (organization) as a
whole. Goal congruence results when a subsystem achieves its goals while contributing to the
organization's overall goal. Subsystems should maximize organizational goals.
1.2 Give an example of how an AIS can improve decision making and describe the multistep
activities involved in the process.
Decision making is a complex, multistep activity: identify the problem, collect and interpret
information, evaluate ways to solve the problem, select a solution methodology, and implement the
solution. An AIS can provide assistance in all phases of decision making. Reports can help to
identify potential problems. Decision models and analytical tools can be provided to users. Query
languages can gather relevant data to help make the decision. Various tools, such as graphical
interfaces, can help the decision maker interpret decision model results, evaluate them, and choose
among alternative courses of action. In addition, the AIS can provide feedback on the results of
actions.
An AIS can help improve decision making in several ways:
It can identify situations requiring management action. For example, a cost report with a large
variance might stimulate management to investigate and, if necessary, take corrective action.
It can reduce uncertainty and thereby provide a basis for choosing among alternative actions.
It can store information about the results of previous decisions, which provides valuable feedback
that can be used to improve future decisions. For example, if a company tries a particular
marketing strategy and the information gathered indicates that it did not succeed, the company
can use that information to select a different marketing strategy.
It can provide accurate information in a timely manner. For example, Walmart has an enormous
database that contains detailed information about sales transactions at each of its stores. It uses
this information to optimize the amount of each product carried at each store.
It can analyze sales data to discover items that are pu
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