This document discusses how information systems are used across various business functions to make processes more effective and efficient. It provides examples of how accounting, finance, cost accounting, budgeting, and auditing functions in particular have embraced information systems technology. The document emphasizes that information systems, if integrated properly across different business functions, can allow information to flow seamlessly to support activities like market research, product development, sales, and management decision making.

1. INFORMATION SYSTEM
IN
BUSINESS FUNCTIONS

2.  Understand how processes in different business
functions relate to each other
 Understand how ISs of different business functions
can support others
 Understand how information technology is used in the
most common business functions to make business
processes more effective and more efficient
 Be able to identify areas in business where information
technology can facilitate the work of managers and
knowledge workers ( such as engineers, designers, and
sales representatives)

3. an economy that produces and consumes
so much information, managers must know how
to use information systems in virtually every
business activity. Managers must have an overall
understanding of all elements of a system, so that
they know what options or available to them to
control cost, prices, and the uses of resources.
None of this activities or the decision making that
underlies management is possible without useful
information and the best tool to handle this
important resource is information technology ,
which is used in a broad range of business
functions across different industries.

4. of this activities or the decision
making that underlies management is
possible without useful information and
the best tool to handle this important
resource is information technology , which
is used in a broad range of business
functions across different industries.

5. is the degree to which a task
is accomplished. The better one performs a
job, the more effective one is. It is
measured as the ratio of the output to
input. The more output with the same
input, or the less input for the same output
used in a process, the more efficient the
process. ISs can help companies attain
more effective and efficient business
process.

6. is the measure of efficiency of
people. ISs have been integrated in to almost
every functional area in business. The earliest
business ISs were implemented in accounting
and payroll because of the routine and
structured nature of accounting task. The
systems automatically post transactions in the
books and automate the generation of reports
for management and for legal requirements.

7. It is often stated that the use of information
technology makes our work more
effective, more efficient , or both.
Effectiveness defines the degree to which a
goal is achieve. A system is more or less
effective depending upon:
How much of its goal is achieve and
The degree to which it brings about better
outcomes than another system.

8. is determined by the
relationship between the resources
expanded and the benefits gained in
achieving a goal.

9. is more efficient than another
if the cost to operate it are lower for the
same or greater quality of the product, or
if the quality of the product is greater for
the same lower costs. The productivity is
commonly used as a synonym for
efficiency. It is specifically the efficiency of
human resources.

10. have proven to contribute both to the
effectiveness and efficiency of business,
specifically when strategically positioned
in specific business foundations, such as
accounting, finance and engineering, and
especially when used to help companies
achieve their goal more quickly by
facilitating collaborative work. ISs can be
used a wide variety of application:

12.  Accounting manual processes to creating
innovative products and services; from
shortening processes, to placing an
organization a strategic position.
Most business do operate many ISs separately:
one for engineering, one for marketing , one
for finance and so on. This is usually than
because systems developed at different times
for different business functions are often in
compatible in hardware, software, data
sharing, and the like.

13. System thinking tells us that ideally, ISs
supporting different functions would be
connected so that the information from
one system could flow into another
accurately and without delay. For
example, information resulting from
market research could serve formulation
of product requirements on one hand the
sales force on the other.

15. Accounting was among the earliest business
functions to embrace ISs technology because
the routine manner in which transaction are
posted and processed. Virtually all of the
business in the western world use IT for
accounting. General ledger, Accounts
Receivable, Accounts Payable, and Cash Flow
books conveniently lend themselves to
computerization, and balance sheets and
profit and lost statements can easily be
generated from the records.

16. Accounting ISs receive records of routine
business transactions such as the
purchase or raw materials for services, or
the sale of manufactured goods – from
transaction processing system ( TPSs).
The information is later used to produced
checks and a check reconciliation program
reconcile against the company’s bank
account.

17. , which are used
to accumulate data about the cost involve
in producing specific products – including
the cost of labor , raw materials, and
purchase services – make excellent use of
ISs to compile data to establish pricing. ISs
are also use to help a locate cost to specific
work orders.

18. are also use extensively
for managerial purposes , assisting in
organizing queerly and annual divisional
and corporate budgets, and time. Effective
budget system can be interface with cash
management ISs requiring that payments
be allocated to appropriate budgetary line
items, and that cash receipts be credited to
appropriate income budgetary items.

19. The has
place new demands on auditors, creating a
new specialty called electronic data
processing audit ( ) , which
ensures that electronic systems comply
with standard regulations and acceptable
rules and ensures that the systems cannot
be manipulated to circumvent this
principle.