NAME I'D NO

YESHI GETO 1571

Department of access and finance AIS assignment

Business process Decisions Information needs

Acquire building and equipment Size of building Capacity needs, building and
equipment prices, market study,
Amount of equipment tax tables and depreciation
Rent or buy, location regulation

Hiring and training employees Experience requirements, how to Job descriptions, applicant job
asses integrity and competence history and skills
of applicants, how to train
employees

Purchasing inventory What models to carry, how much Market analysis, inventory
to purchase, how to manage status reports, vendor
inventory (store, control, etc performance

Selling goods or services Mark-up percentage, offer in- Pro forms income statement,
house credit, which credit cards credit card costs, customer credit
to accept status

2.Explain the Types of information needed for decisions? And give examples for each types?

Types of information needed for decisions:

Some is financial:...Financial information is data about the monetary transactions of a person or

business. This information is use to derive estimates of credit risk by creditors and lenders. Examples of
financial information are as follows:

Credit card numbers

Credit ratings by third party credit analysis firms

Financial statements
Payment histories.

Some is nonfinancial....Non-financial information, however, is not or cannot be readily expressed in

dollar values. Non-information includes environmental effects, political situations and social
responsibilities.Financial information is usually the primary factor in a decision.Examples for non
financial information includes...environmental impacts, relationship with vendors,diversity in workplace
and social responsibility.

Some comes from internal sources....Internal data is information generated from within the business,
covering areas such as operations, maintenance, personnel, and finance. Examples for internal
information...customers profile,sales analysis,production reports,cost analyses,marketing budget and
profit and loss stmnts.

Some comes from external sources.....External data comes from the market, including customers and
competitors. It’s things like statistics from surveys, questionnaires, research, and customer feedback.
Examples might include...census figures, telephone directories.

3 Transaction is an agreement between two entities to exchange goods or services or any other event
that can be measured in economic terms by an organization OR Any other event that can be measured
in economic terms by an organization.

In addition, transaction is an agreement, or communication, carried out between a buyer and a seller to
exchange an asset for payment.

It involves a change in the status of the finances of two or more businesses or individuals. The buyer and
seller are separate entities or objects, often involving the exchange of items of value, such as
information, goods, services, and money. It is still a transaction if the goods are exchanged at one time,
and the money at another. This is known as a two-part transaction: part one is giving the money, part
two is receiving the goods.

4. Explain the following in detail?

A. Revenue cycle where goods and services are sold for cash or a future promise to receive cash.

B. Expenditure cycle where company's purchase inventory for resale or raw materials to use in
producing products in exchange for cash or a future promise to pay cash.

C. Human resources &management HRM cycle payroll subcycle. Weare employees are hired,
trained,compensated evaluated,promoted, and terminates.

D. Production or covers Arion cycle where raw materials are transformed. In to finished goods.

E. Financing cycle where shares of a campany are sold to investors. Is paid on loans
5. An important function of the AIS? is to efficiently and effectively process the data about a company’s
transactions. Explain the for types of data processing

An important function of the AIS is to efficiently and effectively process the data about a company’s
transactions. Either

In manual systems, or In computer-based systems.

The data processing cycle consists of four steps:

 1st Data input.....Any information or data sent to a computer for processing is considered input.

Input or user input is sent to a computer using an input device. The input example data being
sent from a keyboard to a computer.
 2nd Data storage....Data storage refers to the use of recording media to retain data using
computers or other devices. The most prevalent forms of data storage are file storage, block
storage, and object storage, with each being ideal for different purposes.
 3rd Data processing....Data processing is defined as the converting of information into
something that is understood by a computer.
 An example of data processing is typing sales numbers into an inventory control software
program.
 4th Information output...is the process and method by which data can be studied under
different circumstances and manipulated as required by the researcher. Any statistical analysis
produces an output data that needs to be studied.

6 .List down the methods to improve the accuracy and efficiency of data input ??

Accuracy in data entry can be improved by identifying the source of inaccuracies, adhering to robust
standards and using the latest software.

Key business leaders usually take their decisions based on data. If there are inaccuracies in your data, it
could result in poor or uninformed decisions, leading to unplanned costs or additional errors. This is why
data entry has to accurate, with little or no errors.

7. Coding Techniques፦ data exists in variety forms, like text on paper or bytes stored in in it is
difficult to process using traditional databases and software techniques. Coding is a method of
systematically assigning numbers or letters to data items to help classify and organize them.
There are many codes of including:- Coding is a method of systematically assigning numbers or
letters to data items to help classify and organize them. There are many types of codes
including:

Sequence codes

Block codes
Group codes

 Once data about a business activity has been collected and entered into a system ,it
must be processed.

 There are four different types of data processing activities, referred as crud :
 Creating: new data records, e.g new customer.
 Reading: retrieving or viewing existing data.
 Updating data: previously stored data, e.g. account receivable.
 Deleting data: e.g. removing an old customer that has not purchased any thing 5 years.

9. The difference between master file, transaction file and database.

o Master file፦ is a file that stores cumulative information about organization entities.It is
conceptually similar to a ledger in a manual accounting information system in the:-

o Transaction file፦ is a file that contains records of individual transactions (events)that

occur during a fiscal period. It is conceptually similar to a journal in a manual accounting
information system in that:

o Database፦ is a set of interrelated, centrally considered files. When file about closes and
about instructors we have a database.

10. Purpose of the information output of

 An all information system is a interrelted፦

 Activities
 Documents
 Techniques
 Design toTo adverse a group of ፦
 Collected data
 Process it?