12-04-2012, 01:01 PM
global market
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In a global market in the contemporary economic enviornment all business needs relevant and appropraite information quantitative as well as qualitiataive information, which is adequate to survive and grow in a market. In current times the market is unpredictable and dynamic in nature, The main objective of business oranization is to maximize owners wealth or put it in other words to be profiatable in the short-tern as well as in the long-term.
As discussed above, all business must have a management information system, which may be a simple information system to a complex statistical and analytical system or decison support system. The most important is the financial management information system because all business have to earn profit given the risk of operations. The management information system or the sub component management accounting gives regular fianacial reports to magement at all levels regarding performance measures in financial and non financial performance criteria. This enable the organization to understand and identify weaknesses in tems of efficiency improvement and quality improvement of its products and services compared to its major competitiors and suggest cost effective measures to improve organizational flexibility and innovative potential to meet competitive pressures. As well, give the organization the capacity to grow with minimum volatility in its profitablity performance. The management accounting system is a cost control system as well as a tool for planning and controlling operations aand suggest solutions to improve organizational efficiency and productivity of the organization as a whole. It also gives the managers the importance of non financial factors, which can be a crucial factor, which determines the innovative capacity of the organization particualarly the huam factor in all organizations.
Accounting information systems TECHNOLOGY
Input The input devices commonly associated with Accounting information systems include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come ‘‘Web-enabled’’ to allow devices to connect to the World Wide Web.
Process Basic processing is achieved through computer systems ranging from individual personal computers to large-scale enterprise servers. However, conceptually, the underlying processing model is still the ‘‘double-entry’’ accounting system initially introduced in the fifteenth century.
Output Output devices used include computer displays, impact and nonimpact printers, and electronic communication devices for EDI and e-commerce. The output content may encompass almost any type of financial reports from budgets and tax reports to multinational financial statements.
MANAGEMENT INFORMATION SYSTEMS (MIS)
MISs are interactive human/machine systems that support decision making for users both in and out of traditional organizational boundaries. These systems are used to support an organization’s daily operational activities; current and future tactical decisions; and overall strategic direction. MISs are made up of several major applications including, but not limited to, the financial and human resources systems.
DEVELOPMENT
The development of an Accounting information systems includes five basic phases: planning, analysis, design, implementation, and support. The time period associated with each of these phases can be as short as a few weeks or as long as several years.
Planning—project management objectives and techniques The first phase of systems development is the planning of the project. This entails determination of the scope and objectives of the project, the definition of project responsibilities, control requirements, project phases, project budgets, and project deliverables.
ENTERPRISE RESOURCE PLANNING (ERP)
ERP systems are large-scale information systems that impact an organization’s Accounting information systems . These systems permeate all aspects of the organization and require technologies such as client/server and relational databases. Other system types that currently impact Accounting information systems s are supply chain management (SCM) and customer relationship management (CRM).
Traditional Accounting information systems s recorded financial information and produced financial statements on a periodic basis according to GAAP pronouncements. Modern ERP systems provide a broader view of organizational information, enabling the use of advanced accounting techniques, such as activity- based costing (ABC) and improved managerial reporting using a variety of analytical techniques.