Accounting Principles and Management Systems
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Questions and Answers

The sum of debits must always equal the sum of credits in a double entry accounting system.

True (A)

A balance sheet includes a company’s assets, liabilities, and revenues at a specific point in time.

False (B)

The accounting equation is expressed as Assets = liabilities + owner's equity.

True (A)

The profit and loss account provides a snapshot of a company’s financial status at the end of the year.

<p>False (B)</p> Signup and view all the answers

A balance sheet is similar to a snapshot, representing the financial condition of a company at a specific date.

<p>True (A)</p> Signup and view all the answers

External applications integrate internal applications with customers and partners.

<p>True (A)</p> Signup and view all the answers

Stand-alone applications require integration with other applications to function effectively.

<p>False (B)</p> Signup and view all the answers

Legacy systems are known for being integrated and efficient.

<p>False (B)</p> Signup and view all the answers

Management Information Systems (MIS) are designed for the upper level of management.

<p>False (B)</p> Signup and view all the answers

Decision Support Systems (DSS) utilize information from Transaction Processing Systems (TPS) to assist in decision-making.

<p>True (A)</p> Signup and view all the answers

Supply Chain Management (SCM) aims to increase the costs associated with suppliers.

<p>False (B)</p> Signup and view all the answers

Custom applications are pre-packaged software solutions designed for general business needs.

<p>False (B)</p> Signup and view all the answers

Executive Support Systems (ESS) are the lowest tier in enterprise information systems.

<p>False (B)</p> Signup and view all the answers

The Master Production Schedule is driven by independent demand.

<p>True (A)</p> Signup and view all the answers

MRP II incorporates only the Master Production Schedule and Bill of Material.

<p>False (B)</p> Signup and view all the answers

Enterprise Resource Planning (ERP) emerged after Manufacturing Resource Planning II (MRP II).

<p>True (A)</p> Signup and view all the answers

With MRP, companies can maintain stock at a fixed formula for the entire year.

<p>False (B)</p> Signup and view all the answers

Extended ERP includes new functional modules like Human Resources and Cash Management.

<p>True (A)</p> Signup and view all the answers

Computer Integrated Manufacturing (CIM) follows a management/enterprise business approach.

<p>False (B)</p> Signup and view all the answers

The integration of ERP aims to reduce errors and duplications in business processes.

<p>True (A)</p> Signup and view all the answers

The ERP II - EAS includes modules such as Business Intelligence and E-Commerce.

<p>True (A)</p> Signup and view all the answers

In Portugal, all invoices must be delivered to customers by the 10th day of the month.

<p>False (B)</p> Signup and view all the answers

Supply chain management includes activities such as marketing and customer service.

<p>True (A)</p> Signup and view all the answers

Cost centers are not a part of accountability requisites in finance.

<p>False (B)</p> Signup and view all the answers

An invoice should detail the price with taxes only, excluding the price without taxes.

<p>False (B)</p> Signup and view all the answers

The flow of materials in a supply chain only includes the movement from suppliers to factories.

<p>False (B)</p> Signup and view all the answers

Accounting information systems facilitate customer relationship management.

<p>True (A)</p> Signup and view all the answers

All software used for invoicing purposes must be certified in Portugal.

<p>True (A)</p> Signup and view all the answers

Supply chain management and supply chain are interchangeable terms with the same meaning.

<p>False (B)</p> Signup and view all the answers

The purchase order process concludes with the creation of the vendor invoice.

<p>False (B)</p> Signup and view all the answers

Coordination of production activity is solely focused on product sales.

<p>False (B)</p> Signup and view all the answers

Multisite operations include the management of shipments between different locations.

<p>True (A)</p> Signup and view all the answers

Sales and Operations Planning starts with defining all supply constraints.

<p>False (B)</p> Signup and view all the answers

Human Capital Management includes managing salary and benefits for employees.

<p>True (A)</p> Signup and view all the answers

The Warehouse Management process only concerns outbound shipments.

<p>False (B)</p> Signup and view all the answers

A good HR information system allows retrieval of employee information in seconds.

<p>True (A)</p> Signup and view all the answers

Human Resource responsibilities do not include employee training.

<p>False (B)</p> Signup and view all the answers

Pure e-commerce business models aim to achieve lower levels of profitability.

<p>False (B)</p> Signup and view all the answers

Traditional retail brands utilize e-commerce to maintain their retail dominance.

<p>True (A)</p> Signup and view all the answers

Only large corporations have taken advantage of cloud-based computing resources in e-commerce.

<p>False (B)</p> Signup and view all the answers

Information density in e-commerce offers reduced transparency in pricing and costs.

<p>False (B)</p> Signup and view all the answers

Social e-commerce is based on a digital social graph and is independent of social networks.

<p>False (B)</p> Signup and view all the answers

The features driving the growth of social e-commerce include collaborative shopping and social search.

<p>True (A)</p> Signup and view all the answers

Electronic Data Interchange (EDI) allows for computer-to-computer exchange of standard transactions.

<p>True (A)</p> Signup and view all the answers

E-commerce is the broader concept compared to E-business.

<p>False (B)</p> Signup and view all the answers

Dynamic pricing is a feature enabled by the rise of digital markets.

<p>True (A)</p> Signup and view all the answers

The 'Like' button on Facebook is part of social network marketing strategies.

<p>True (A)</p> Signup and view all the answers

Flashcards

Externally Focused Applications

Applications that connect with external systems like suppliers, partners, and customers. They exchange information across organizational boundaries.

Upstream Information

Information flow from suppliers to a company. It helps in accelerating product development and reducing supplier costs.

Downstream Information

Information flow from a company to its customers. It enables communication, order management, and customer support.

Packaged Applications

Two or more programs designed to address a specific business need. They are pre-built and available for purchase.

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Custom Applications

Applications customized or developed specifically for a unique business need.

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Stand-alone Applications

Applications that run independently and are not integrated into existing systems. They connect with no other apps.

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ERP (Enterprise Resource Planning)

Integrated systems that streamline operations and improve efficiency by connecting different departments and processes.

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CRM (Customer Relationship Management)

Systems focused on optimizing customer relationships, automating sales tasks, and improving customer service.

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Balance Sheet

A financial statement capturing a company's assets, liabilities, and owner's equity at a specific moment in time. It reflects a company's financial position.

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Assets

Everything a company owns, including cash, accounts receivables, property, and goods.

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Liabilities

Everything a company owes to others, like loans and mortgages.

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Profit & Loss Account

The financial statement reflecting a company's profitability over a specific period, usually a year.

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Double-Entry System

A system for tracking and recording financial transactions. It involves debiting and crediting accounts equally for each transaction to ensure a balanced ledger.

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Supply Chain

A collection of companies linked together through the flow of goods, services, finances, and information, starting from raw materials and ending with the final customer.

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Supply Chain Management

Managing the entire supply chain, encompassing all activities from procurement and distribution to inventory management, marketing, finance, and customer service.

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Supply Demand

The goal of supply chain management, aimed at meeting customer demand effectively.

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Supply Chain Activities

The planning, organization, and coordination of all activities within the supply chain.

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Procurement

The process of acquiring goods and services from external vendors.

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Distribution

Managing the movement and storage of goods, ensuring timely and efficient delivery to customers.

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MRP (Material Requirements Planning)

A planning and control system that helps companies manage production by calculating the amount of resources needed at each stage to meet customer demand.

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Bill of Materials (BOM)

A document that outlines the components and quantities required to produce a final product. It shows the hierarchy of parts and the relationships between them.

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Master Production Schedule (MPS)

A schedule outlining the production plan based on customer orders. It determines the quantity and timing of products to be manufactured.

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MRP II (Manufacturing Resource Planning)

An extension of MRP incorporating additional functionalities like financial management, capacity planning, and supply chain management.

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Extended ERP

An extended version of ERP that further integrates modules like fixed assets, cash management, human resources, and warehouse management.

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EAS (Enterprise Application Suite)

A suite of enterprise applications combining ERP with modules like service management, customer relationship management (CRM), business intelligence (BI), and e-commerce.

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Capacity Resource Planning (CRP)

A planning approach that considers production capacity and available resources to determine the feasibility of the production plan.

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Customer Relationship Management (CRM)

A business process that manages customer interactions, from initial contact to ongoing support. It covers activities like quoting, order processing, and returns, all with the goal of building strong customer relationships.

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Purchase Order Processing

A business process involving the purchase of goods or services from vendors, including generating purchase orders, receiving goods, and managing vendor invoices. It aims to optimize procurement operations and maintain positive vendor relationships.

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Production Order Processing

A core business process that focuses on transforming raw materials or components into finished products. It involves planning production schedules, coordinating work centers, and monitoring inventory to meet demand.

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Multisite Operation: Transfer Orders

A logistical process that involves transferring goods between different locations within a company. It includes creating transfer orders, coordinating shipping and receiving, and tracking goods throughout the process.

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Warehouse Management

A business function that manages the storage and movement of inventory within a warehouse. It includes receiving inbound shipments, processing outbound orders, and optimizing storage space to ensure efficient operations.

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Sales and Operations Planning (S&OP)

A strategic planning process that aligns sales demand with production capacity. It involves forecasting demand, analyzing production capabilities, and developing plans to ensure that the company can meet customer needs.

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Human Capital Management (HCM)

A specialized area of HR that focuses on attracting, hiring, training, and managing employees. This includes recruiting new hires, ensuring employee development, and addressing performance and conduct issues.

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HR System

A system designed to efficiently manage employee information, including personal details, employment history, performance records, and compensation. It simplifies access to employee data and streamlines HR processes.

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Global Reach in E-commerce

The ability of e-commerce to reach customers all over the world, regardless of physical location.

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Personalization in E-commerce

The use of technology to personalize marketing messages and products to individual customers.

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Social Technology in E-commerce

The creation of user-generated content and social connections within an e-commerce platform.

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Reduced Information Asymmetry

The reduction of the difference in information available to buyers and sellers in e-commerce.

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Switching Costs in E-commerce

The cost of switching from one e-commerce platform to another.

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Social Network Marketing

The use of digital social connections to promote products and services.

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Wisdom of Crowds

The concept that the collective wisdom of a large group of people can be more accurate than individual judgement.

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Crowdsourcing

The process of obtaining information or services from a large group of people.

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EDI in E-commerce

The use of electronic data interchange (EDI) to exchange standardized business documents like invoices and purchase orders.

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Dynamic Pricing in E-commerce

The practice of adjusting prices based on real-time changing conditions, such as demand and competition.

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Study Notes

Digital Economy

  • Digital evolution has progressed from punched tape to magnetic tape, floppy disks, compact disks, hard drives, USB drives, and cloud storage.
  • Three core concepts are storage, processing speed, and bandwidth (processing and communication), which significantly impact processes.
  • The four important laws associated with digital evolution are Moore's Law, Metcalfe's Law, Gilder's Law, and Nielsen's Law.

Moore's Law

  • Processor speed (and overall processing power) doubles approximately every two years.
  • This leads to a decrease in relative costs while increasing processing capacity.
  • This is an exponential increase in processing power.

Metcalfe's Law

  • The value of a network is proportional to the square of the number of users.
  • A network's value increases significantly as more users join.
  • It's a concept used in computer networks, but also sometimes applied to neurons in the human brain.

Gilder's Law

  • Bandwidth increases at least three times faster than computer power.
  • Computer power doubles approximately every eighteen months, while communications power doubles every six months.

Nielsen's Law

  • Connectivity and speed have a direct and linear relationship.
  • Increased speed is not as valuable as increased connectivity for networks.

Objectives of Enterprise Information Systems

  • Create value for the business: Provide comprehensive business information.
  • Competitive advantages: Help companies gain a competitive edge by streamlining operations without repetitive tasks like issuing invoices.
  • Accelerated innovation: Support new business models, product development, and cost control to improve process efficiency.

Enterprise Information Systems

  • Implement functional structure and organizational structure to support all levels within functional areas.
  • Enterprise systems' essential purpose is to create value to support business needs.

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Description

Explore fundamental concepts in accounting and management information systems with this quiz. Topics include debits and credits, balance sheets, profit and loss accounts, and the integration of various applications. Test your knowledge on how these systems support business operations and decision-making.

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