Acc 409 Exam 1

Exam #1 Study Guide

Chapter 1

• Know AIS vocabulary – system, subsystems, data, information, goal conflict, goal congruence, value of information.

System: Is a set of two or more interrelated components that interact to achieve a goal.

Subsystems: Small systems contained within a larger system.

Data: Are facts that are collected, recorded, store, and processed by an information system.

Information: Is data that have been organized and processed to provide meaning and improve the decision-making process.

Goal Conflict: Goal for subsystems are aligned with the overall system.

Goal Congruence: Occurs when a subsystem achieves its goals while contributing to the organization’s overall goal.

Value of information: is the benefit produced by the information minus the cost of producing it.

• Identify and understand the 7 characteristics that make information useful.

1. Relevant: Reduces uncertainty, improves decision making, or confirms or corrects prior expectation

2. Reliable: Free from error or bias; accurately represents organization events or activities.

3. Complete; Does not omit important aspects of the events or activities it measures.

4. Timely: Provided in time for decision make decisions.

5. Understandable: Presented in a useful and intelligible format.

6. Verifiable: Two independent, knowledgeable people produce that same information.

7. Accessible: Available to users when they need it and in a format they can use.

• Understand business processes and transaction processing. What are the 5 major business processes?

- A business process is a set of related, coordinated, and structured activities and tasks that are performed by a person or by a computer or a machined, and that help accomplish a...