Answer: A well-designed AIS improves the efficiency and effectiveness of the value chain by improving the quality and lowering the overall cost of products or services, improving efficiency of operations, improving decision making, and enhancing the sharing of knowledge. These are the benefits of possessing and using information. Drawbacks to possessing and using such information are the costs of obtaining and maintaining such information. These costs include investments in people, processes, and computing and networking hardware and software on an ongoing basis. Costs of the information are quantifiable to some extent. However, some of the benefits of using the information involve numerous estimates and assumptions. As such, the quantification of the benefits of utilizing such information depends on the accuracy of the assumptions.
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Challenging
AACSB: Information Technology
25) A change in the AIS that makes information more easily accessible and widely available within an organization is most likely to first influence the
A) organizational culture.
B) customer base.
C) external financial statement users.
D) production activity.
Answer: A
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
26) In Chapter 1, Figure 1-5 shows the factors that influence the design of AIS. The diagram shows a bi-directional arrow between the organizational culture and the AIS. The reason for this two-way interchange between organizational culture and AIS is
A) that the AIS should not influence the values of the organizational culture.
B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization.
C) due to the transfer of managers between the two corporate elements.
D) the AIS impacts the organization's key strategies.
Answer: B
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Application of Knowledge
27) Which of the following is a true statement?
A) Business strategy directly influences AIS, but not information technology.
B) Information technology directly influences organizational culture, but not business strategy.
C) Organizational culture directly influences business strategy, but not AIS.
D) AIS directly influences information technology, but not business strategy.
Answer: A
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Challenging
AACSB: Reflective Thinking
28) Corporate strategy should affect the way a firm deploys an accounting information system.
Answer: TRUE
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
29) Identify the primary reason that it is important for a firm to identify the AIS improvements likely to yield the greatest return.
A) because business strategy directly influences AIS, but not information technology
B) because most organizations have limited resources
C) because a firm never wants to waste time addressing issues that are not urgent
D) because it is expensive to improve accounting information systems
Answer: B
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Moderate