Accounting Information Systems 3rd Edition by Vernon Richardson Solution manual
As information becomes more timely, it generally becomes more relevant. A stakeholder could make decisions based on current account balances versus the balances reported two-to-three months ago. Even periodic data that was reported daily would provide insight into when estimates are generated and adjusted.
However, there is a risk that real-time reporting will exhibit less faithful representation. Periodic financial statements are reviewed for errors and audited. Real-time reports would be more likely to include material errors that could result in poor decisions by stakeholders. Managers would need to provide better controls or disclose the risks if others are to use the information.
Accenture recently wrote an article entitled, “Meet the Finance 2020 Workforce” (2017) suggesting that accountants will need to embrace new financial roles to analyze new business opportunities and way the organization can profit from them. Consider the internal and external business processes and give ideas of how they might allow the accountant to analyze business opportunities and how the company might able to profit from them.
If enterprise systems do much of the traditional work of recording transactions and processing journal entries and other accounting information, what role is left for the accountant to perform?
Answers may vary.With computers doing much of the recording and processing of accounting information, the accountant can become more of a business analyst, knowing what information is available and knowing what information is needed to help management make important decisions.
(Connect) Match the value chain activity in the left column with the scenario in the right column.
Service Activities matches best with B. Warranty Work
Inbound Logistics matches best with F. Receiving dock for raw materials
Marketing and sales activities matches best with A. Surveys for prospective customers
Firm Infrastructure matches best with G. CEO and CFO
Human Resource Management matches best with I. Worker recruitment
Technology matches best with E. New-product development
Procurement matches best with H. Buying (sourcing) raw materials
Outbound Logistics matches best with D. Delivery to the firm’s customer
Operations matches best with C. Assembly Line
(Connect) Match the value chain activity in the left column with the scenario in the right column.
Customer Call Center matches best with G. Service Activities
Supply Schedules matches best with B. Inbound Logistics
Order Taking matches best with I. Marketing and sales activities
Accounting Department matches best with D. Firm Infrastructure
Staff Training matches best with E. Human Resource Management
Research and Development matches best with F. Technology
Verifying quality of raw materials matches best with C. Procurement
Distribution Center matches best with H. Outbound Logistics
Manufacturing matches best with A. Operations
In 2002, John Deere’s $4 billion commercial and consumer equipment division implemented supply chain management software and reduced its inventory by $500 million. As sales continued to grow, they have been able to keep their inventory growth flat. How did the supply chain management software implementation allow them to reduce inventory on hand? How did this allow them to save money? Which income statement accounts (e.g., revenue, cost of goods sold, SG&A expenses, interest expense, etc.) would this affect?
The use of supply chain software allowed the business to reduce its inventory and then as sales growth continued, keep its inventory growth flat.This is at least $500 million less that the company had to finance with either liabilities or equity.To the extent it reduced its debt, this would reduce its interest expense.The reduction in inventory also reduced the warehouses to store the inventory, potentially reducing SG&A expenses.
Dell Computer used Customer Relationship Management Software called IdeaStorm to collect customer feedback. This customer feedback led the company to build select consumer notebooks and desktops pre-installed with the Linux platform. Dell also decided to continue offering Windows 10 as a pre-installed operating system option in response to customer requests. Where does this fit in the value chain? How will this help Dell create value? By listening to the customer and meeting their needs, will this increase revenues or decreases expenses? SaaSy recommends
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