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AIS Answer

Transaction processing systems differ between manufacturing and service industries. Manufacturing organizations produce physical goods that can be stored as inventory, while service organizations produce intangible products that cannot be produced ahead of time. However, both types of organizations provide a mix of goods and services. The elements of efficiency, effectiveness, and flexibility are crucial to the design of an information system to ensure the system is productive, easy to use, and adaptable to risks. The accounting system represents the flows of resources like personnel, materials, equipment, and cash through the organization and is used to evaluate performance and make improvements. Conceptual systems identify risks while physical systems determine how information is presented. Accountants are consulted in systems development because they need the system's information

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591 views2 pages

AIS Answer

Transaction processing systems differ between manufacturing and service industries. Manufacturing organizations produce physical goods that can be stored as inventory, while service organizations produce intangible products that cannot be produced ahead of time. However, both types of organizations provide a mix of goods and services. The elements of efficiency, effectiveness, and flexibility are crucial to the design of an information system to ensure the system is productive, easy to use, and adaptable to risks. The accounting system represents the flows of resources like personnel, materials, equipment, and cash through the organization and is used to evaluate performance and make improvements. Conceptual systems identify risks while physical systems determine how information is presented. Accountants are consulted in systems development because they need the system's information

Uploaded by

kateangel elleso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

Do you think transaction processing systems differ significantly between service and
manufacturing industries? Are they equally important to both sectors?

Yes, they are different. A transaction process system (TPS) is an information processing system
for business transactions involving the collection, modification and retrieval of all transaction
data. Manufacturing organizations produce physical, tangible goods that can be stored in
inventory before they are needed while the service organization produce intangible products
that cannot be produced ahead of time. A manufacturing organization purchases raw materials
in large amount for which payments need to be made but in service management they purchase
only small amount of materials that is necessary to the operations. Yes, manufacturing does not
just offer products, and service organizations do not just offer services. Both types of
organizations normally provide a package of goods and services. Although service provides
cannot inventory their outputs, they must inventory the inputs for their products.

2. Discuss how the elements of efficiency, effectiveness, and flexibility are crucial to the design of
an information system.

Efficiency, effectiveness and flexibility is very crucial to the design of the information system
because you need to assess whether the information is efficient, effective and flexible to the
possible risk may encounter. A system having an efficient information will help the business to
be productive and lessen the expenses in the end process. The information system also must be
effective, attainable and easy to access so that the users or the business can process the
information with less hassle. And lastly the information system must be flexible at all times. It
must be open for improvement and adjustments when encounters a risk.

3. Discuss what is meant by the statement, “The accounting system is a conceptual flow of
information that represents the physical flows of personnel, raw materials, machinery, and cash
through the organization.”

The accounting system is the one who holds the business into its place. The accounting system
includes all the information regardless of flow of money, personnel, raw materials and
machinery through the organization. The business use this information to evaluate and create a
new technique or process in the next operation. Good decision is very necessary in maintaining
and improving the business. The accounting system also shows the transactions of money
happens in and out of the business and we all know that business is always aiming a profit. By
this information it help the business to create a decision that will increase its profit.

4. Discuss how conceptual and physical systems differ and which functions are responsible for each
of these systems.

The conceptual system helps identifying the possible risk of the business especially when it
comes to the possible behavior of the customer. It will also report all the necessary information
that needs an immediate actions. While the Physical system is the medium and method on how
the information will be presented.

5. If accountants are viewed as providers of information, then why are they consulted as system
users in the systems development process?
Accountant will need the information of the system to view the larger picture of the
information. The accountant must present a clear information to the maker of the system.
Accounting is very crucial that’s why the information system will be a big help in evaluating and
to validate the information in and efficient and effective way.

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