CORE CONCEPTS OF ACCOUNTING INFORMATION SYSTEMS PDF
Core concepts of accounting information systems/Mark G. Simkin, Carolyn 16 wildlifeprotection.info%20White%20Paper%Febpdf. Knowing how accounting information systems gather and transform data into useful decision-making information is fundamental knowledge for accounting. Core Concepts of Accounting Information Systems Pdf. Learn core concepts accounting information systems with free interactive flashcards. Choose from.
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Table of Contents
They found that most customers were adults who used the product to feel more playful. They may have enjoyed the company's bright orange color, messiness and shape. These days, companies store and receive huge amounts of data through emails , online chat sessions, phone calls, and more. All of these are signs of what types of relationships the customer wants with the firm, and therefore companies may consider investing more time and effort in building out their relational intelligence.
Social media such as social networking sites, blogs and forums can also be used to collect and analyze information. Understanding the customer and capturing this data allows companies to convert customer's signals into information and knowledge that the firm can use to understand a potential customer's desired relations with a brand.
This helps convert data into profits for the firm. Stronger bonds contribute to building market share. By managing different portfolios for different segments of the customer base, the firm can achieve strategic goals. For example, Harley Davidson sent its employees on the road with customers, who were motorcycle enthusiasts, to help solidify relationships.
Other employees have also been trained in social psychology and the social sciences to help bolster strong customer relationships. Customer service representatives must be educated to value customer relationships, and trained to understand existing customer profiles.
Even the finance and legal departments should understand how to manage and build relationships with customers. These systems codify the interactions between company and customers by using analytics and key performance indicators to give the users information on where to focus their marketing and customer service.
This allows agents to have access to a caller's history to provide personalized customer communication. The intention is to maximize average revenue per user , decrease churn rate and decrease idle and unproductive contact with the customers.
Core Concepts of Accounting Information Systems, 13th Edition
The gamification of customer service environments includes providing elements found in games like rewards and bonus points to customer service representatives as a method of feedback for a job well done.
Automation prevents this by having pre-recorded audio messages that help customers solve their problems. For example, an automated contact center may be able to re-route a customer through a series of commands asking him or her to select a certain number in order to speak with a particular contact center agent who specializes in the field in which the customer has a question.
This also saves time on behalf of the employees. These customers also share their own opinions and experiences with a company's products and services, giving these firms more insight.
Therefore, these firms can both share their own opinions and also track the opinions of their customers. The systems take in information based on a customer's physical location and sometimes integrates it with popular location-based GPS applications. It can be used for networking or contact management as well to help increase sales based on location.
For the best level of CRM operation in a B2B environment, the software must be personalized and delivered at individual levels. There are fewer figure propositions in business-to-business, but in some cases, they cost a lot more than business-to-consumer items and relationships in business-to-business environment are built over a longer period of time.
Furthermore, business-to-business CRM must be easily integrated with products from other companies.
Ideally, it would be not just compatible, but optimal—a clunky system will be much less helpful than a speedy one. One way businesses can easily meet hardware and software compatibility requirements is by purchasing a turnkey system that includes both the hardware and the software that the business needs. Purchasing a turnkey system means, theoretically, that the business will get an optimal combination of hardware and software for its AIS.
A good AIS should also include a plan for maintaining, servicing, replacing and upgrading components of the hardware system, as well as a plan for the disposal of broken and outdated hardware so that sensitive data is completely destroyed. Internal Controls The internal controls of an AIS are the security measures it contains to protect sensitive data. These can be as simple as passwords or as complex as biometric identification. An AIS must have internal controls to protect against unauthorized computer access and to limit access to authorized users, which includes some users inside the company.
It must also prevent unauthorized file access by individuals who are allowed to access only select parts of the system. An AIS contains confidential information belonging not just to the company but also to its employees and customers.
This data may include Social Security numbers, salary information, credit card numbers, and so on. All of the data in an AIS should be encrypted, and access to the system should be logged and surveilled.
System activity should be traceable as well. An AIS also needs internal controls that protect it from computer viruses, hackers and other internal and external threats to network security. It must also be protected from natural disasters and power surges that can cause data loss.
The third use for an AIS is that, when a business is in trouble, the data in its AIS can be used to uncover the story of what went wrong. The cases of WorldCom and Lehman Brothers provide two examples.
The search for the causes of the company's failure "required an extensive investigation and review of Lehman's operating, trading, valuation , financial, accounting and other data systems," according to the 2,page, nine-volume examiner's report. Lehman's systems provide an example of how an AIS should not be structured.
Examiner Anton R. Valukas' report states, "At the time of its bankruptcy filing, Lehman maintained a patchwork of over 2, software systems and applications Many of Lehman's systems were arcane, outdated or non-standard.Some examples: a Much of today's accounting tasks are performed with computers.
Cancel Save. This eliminates data-entry bottlenecks and reduces the errors such data transcription typically introduces into an AIS. The website at http: However, data transcription is critical to those computerized accounting information systems that collect data with manually-prepared source documents.
Finally, the control sections of central processing units act as an overseer of operations, interpreting program instructions and supervising their execution.
Many drivers hate them—for example, arguing that winter conditions made it difficult to stop or that such systems are more motivated by ticket revenues than by concerns for safety. One advantage of using such a system is that buyers need only provide their credit card numbers or otherwise establish accounts with one company—the e-payment company—not each company with which they wish to do business. An AIS also needs internal controls that protect it from computer viruses, hackers and other internal and external threats to network security.
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