33] In 2003, Custer Manufacturing implemented a Web-based information system that allows all employees to access mission-critical information. The intention was to increase production efficiency. Unfortunately, it had the opposite effect, as deliveries fell behind schedule and costs increased. Jeff Akspen, the director of information technology services, asked Joyce Jenkins to come in and talk with him about the
system. Joyce is a long-time employee of Custer, and her opinion is valued by her peers and by her supervisor. "So Joyce, how's it going down there in the shop?""Not so good, Jeff. Used to be we got a weekly pick list so we knew how to plan production. Now, we got that computer system. Most of us can't figure out how to use it to do our jobs. Is there some way to print out a pick list?"Jeff thought for a while before responding. "Well, Joyce, to tell you the truth, I'm not so sure how to do it
myself, but there must be a way. We'll bring in the consultants that helped us build the system. Maybe they can help." Which of the following characteristics of useful information is absent in the situation described above?
A] Relevant
B] Reliable
C] Complete
D] Timely
E] Understandable
F] Verifiable
G] Accessible
Data: facts that are collected, entered, recorded, stored, and processed by an AIS. Information: data that has been organized and processed and is meaningful to its users. Such information is accessible, relevant, timely, reliable, verifiable, complete, and understandable. Information is of value when the benefits received from using or acting upon it outweighs the cost to produce the information.
The seven characteristics of useful information are: relevant, reliable, complete, timely, understandable, verifiable and accessible. These characteristics are qualities that information should possess to be useful in a business environment. Briefly stated, in order for information to be useful it must be: 1] relevant, meaning that it reduces uncertainty and adds to the decision-making process; 2] reliable information is information that is free from error, and is accurate in its nature; 3] complete information is information that does not omit any important data, facts, or aspects about events or activities; 4] information is timely when it is fully available to enable the decision-making process to proceed; 5] understandable information must be both in an intelligible and useful format; 6] information is considered verifiable if two people, acting independently of each other, produce the same information or the same results. 7] Information is accessible if it is available to users when they need it and in a format they can use.
An AIS consists of six components: people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures. The AIS performs three major functions: 1] it collects and stores data about activities and transactions so that the organization's management, employees, and interested outsiders can review what has happened; 2] the AIS processes data [that is, facts that have been collected and stored] into information that is useful for making decisions, and is of value to the organization; and 3] the AIS provides adequate controls designed to safeguard the organization's assets, including its data and information. Common examples of accounting transactions that an AIS helps to process and track are the sales of products to customers, cash collections, cash payments, and the recording and payment of the employees' payroll.
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