By J. Hall
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5 6 PART I Overview of Accounting Information Systems An Example of an Artificial System An automobile is an example of an artificial system that is familiar to most of us and that satisfies the definition of a system provided previously. To simplify matters, let’s assume that the automobile system serves only one purpose: providing conveyance. To do so requires the harmonious interaction of hundreds or even thousands of subsystems. For simplicity, Figure 1-2 depicts only a few of these. In the figure, two points are illustrated of particular importance to the study of information systems: system decomposition and subsystem interdependency.
Simply stated, DDP involves reorganizing the IT function into small information processing units (IPUs) that are distributed to end users and placed under their control. IPUs may be distributed according to business function, geographic location, or both. Any or all of the IT activities represented in Figure 1-10 may be distributed. Figure 1-11 shows a possible new organizational structure following the distribution of all data processing tasks to the end-user areas. Notice that the central IT function has been eliminated from the organization structure.
The marketing function deals with the strategic problems of product promotion, advertising, and market research. On an operational level, marketing performs such daily activities as sales order entry. 17 18 F I G U R E 1-8 FUNCTIONAL AREAS OF A FIRM PART I Business Organization Production Marketing Distribution Personnel Finance Accounting IT Services Purchasing Manufacturing Promotion Warehousing Recruiting Portfolio Management Inventory Control Data Processing Receiving Support Advertising Shipping Training Treasury Cost Accounting Benefits Credit Payroll Systems Development and Maintenance Counseling Cash Disbursement Accounts Payable Cash Receipts Accounts Receivable Stores Market Research Sales Billing Fixed Assets General Ledger Database Administration Overview of Accounting Information Systems Materials Management CHAPTER 1 The Information System: An Accountant’s Perspective Distribution Distribution is the activity of getting the product to the customer after the sale.
Accounting Information Systems by J. Hall