Accounting information system
consists of interrelated manual and computer parts and uses processes such as collecting, recording, summarizing, analyzing, and managing data to transform inputs into information that is provided to users.
Financial Accounting
primarily concerned with producing outputs for external users, financial statements such as balance sheet, income statement, and statement of cash flows for external users (investors, creditors, govt agencies)
Cost Management
Information system that is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. Not bound by external criteria that defines inputs & processes.
Cost Accounting information system
Is a cost management subsystem designed to assign costs to individual products and services and other objects as specified by management.
Operational control information system
Is a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities.
Enterprise resource planning (ERP) software
Has the objective of providing an integrated system capability- a system that can run all the operations of a company and provide access to real-time data from the various functional areas of a company.
Electronic commerce (e-commerce)
Is any form of business that is executed using information and communications technology. Examples are internet trading, electronic data interchange, and bar coding.
Electronic data interchange (EDI)
Involves the exchange of documents between computers using telephone lines and is widely used for purchasing and distribution.
Supply Chain Management
Is the management of products and services from the acquisition of raw materials through manufacturing, warehousing, distribution, wholesaling, and retailing.
Theory of constraints
Is a method used to continuously improve manufacturing and nonmanufacturing activities. Characterized as a "thinking process" that begins by recognizing that all resources are finite. Some are more critical than others. Most critical limiting factor, call
Just-in-Time Manufacturing (JIT)
Strives to produce a product only when it is needed and only in the quantities demanded by customers. Reduces inventory costs. Frees up capital that can be used for more productive investments.
Value chain
Refers to set of activities required to design, develop, produce, market, and deliver products and services to customers.
Target costing
Encourages managers to assess the overall cost impact of product designs over the product's life cycle and simultaneously provides incentives to make design changes to reduce costs.
Activity-based management
Identifies the activities produced at each stage of the development process and assesses their costs. Complimentary to Target costing because it enables managers to identify the activities that do not add value and then eliminate them so that overall life
Total quality management
In which managers strive to create and environment that will enable organizations to produce defect-free products and services.
Line positions
Positions that have direct responsibility for the basic objectives of an organization are referred. Participate in activities that produce and sell their company's product or service
Staff positions
Positions that are supportive in nature and have only indirect responsibility for an organization's basic objective. Such as Vice president of finance & HR, cost accountant.
Controller
The chief accounting officer supervises all accounting departments. Encouraged to participate in planning, controlling, and decision-making activities.
Treasurer
Responsible for the finance function. Raises capital & manages cash, investments, & investors relations. Reports to Financial Vice President.
Planning
Detailed formulation of future actions to achieve a particular end is the management activity.
Controlling
Processes of monitoring a plan's implementation and taking corrective action as needed.
Feedback
Information that can be used to evaluate or correct the steps that are actually being taken to implement a plan.
Performance reports
Accounting reports that provide feedback by comparing planned (budgeted) data with actual data.
Continuous improvement
Has been defined as "the relentless pursuit of improvement in the delivery of value to customers.
Decision making
Process of choosing among competing alternatives. Can be improved if information about alternatives is gathered and made available to managers. One of major roles in AIS is to supply information that facilitates decision making.
Business Ethics
Is learning what is right or wrong in the work environment and choosing what is right.
Certified Management Accountant (CMA)
Has passed a rigorous qualifying examination, has met an experience requirement, and participates in continuing education.
Certified Public Accountants (CPAs)
Are permitted by law to serve as external auditors
Certified Internal Auditor (CIA)
Specialized certification.