Name and briefly describe the 5 major components that make up the info technology of an organization.
- Hardware: actual physical computer/computer peripheral device
- Software: systems and programs that process data and turn that data into info
- Network: made up of the communication media that allows multiple computers to share data and info simultaneously
- People: many people have a role in IT, such as hardware technicians, network administrators, software developers, and end users
- Data: raw facs
What are the 5 functions performed on data in a business information system?
- Collect
- Process
- Store
- Transform
- Distribute
Describe the normal series of events in an accounting information system (AIS).
- Transaction data from source documents is entered into the AIS by the end user
- The original paper source documents are filed
- The transactions are recorded in the appropriate journal
- The transactions are posted to the general and subsidiary ledgers
- Trial balances are prepared
- Adjustments, accruals, and corrections are entered
- Financial reports are generated
Name and briefly describe six different types of MIS reports
- Periodic schedules reports: traditional reports that display info in a predefined format and are made available on a regular basis to end users of the system
- Exception reports: reports produced when a specific condition or “exception” occurs
- Demand reports: specific reports that can be printed on demand
- Ad hoc reports: report that does not currently exist but that can be created on demand without having to get a software developer involved
- Push reports: report that can actually be “pushed” or sent to a computer screen or computer desktop
- Dashboard reports: report used by a company to present summary info necessary for management action
What are the primary roles of business information systems?
- Process detailed data
- Assist in making daily decisions
- Assist in developing business strategies
- Take orders from customers
Describe the two types of processing used in a computerized environment
Batch processing - periodic processing
Online, real-time (OLRT) processing (often referred to as “online processing”) - immediate processing
What is a batch control total and how does it differ from a hash total?
Batch control total (or batch total) is a manually calculated total that is compared to a computer-generated total as a means of testing the accuracy and completeness of the input and processing.
Batch totals are used for numbers that are normally added, such as dollar amounts.
Hash totals are used for numbers that are not normally added, such as account numbers.
What is the distinction between centralized and decentralized (distributed) processing?
Centralized processing maintains data and performs data processing at one or more central locations.
Decentralized processing occurs when computer power and processing are spread over many locations
What are the advantages and disadvantages of centralized processing?
Advantages:
- Data is secured better, once received
- Processing is consistent
Disadvantages:
- Cost of transmitting large numbers of detailed transactions can be high
- Increased processing power and data storage needs at the central location
- Reduction in local accountability
- Input/output bottlenecks may occur at high traffic times
- Lack of ability to respond in a timely manner to information requests from remote locations
- Entire organization may be vulnerable to problems incurred at a single location
List and explain the steps in batch processing
Accomplished in 2 steps:
- Create a transaction file: by manually (usually) keying the data (data entry), editing the data for completeness and accuracy, and making any necessary corrections
- Update the master file: by sorting the transaction file into the same order as the master file and then updating the relevant records in the master file from the transaction file
What is the major distinction between batch processing and online processing?
Transaction in batch processing system are processed in batches and not necessarily at the time those transactions are submitted.
In online processing, transactions are processed as the transactions are entered.
