The chapter introduces accounting information systems and discusses why they are important to study. It defines key terms like systems, data, and information. It also explains how accounting information systems provide information to internal and external users to support decision making throughout an organization's value chain, from strategic planning decisions down to routine operational control decisions. Finally, it discusses how a company's accounting information system should support its overall business strategy, whether that is a product differentiation strategy or a low-cost strategy.

1. HAPTER 1 Accounting Information Systems: An Overview

37. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology AIS design is affected by information technology, the organization’s strategy, and the organization’s culture.

38. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology Information technology affects the company’s choice of business strategy. To perform cost-benefit analyses on IT changes, you need to understand business strategy.

39. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology Although culture affects the design of the AIS, it’s also true that the AIS affects culture by altering the dispersion and availability of information.

41. ROLE OF THE AIS IN THE VALUE CHAIN Well, Mr. Pharmaceutical Salesman, your proposal looks good, but your prices are about 5% higher than your competitors.

42. ROLE OF THE AIS IN THE VALUE CHAIN That’s true, but we’re comfortable with that because of the value-added that we bring to this arrangement.

43. ROLE OF THE AIS IN THE VALUE CHAIN What is that “value-added,” and how do you convert it into dollars?

44. ROLE OF THE AIS IN THE VALUE CHAIN Blah—blah—blah– customer service– blah—blah — blah