Transcript Accounting Information System

Accounting Information System
System
• A system is a set of parts coordinated to
accomplish a set of goals . It is also an
organized set of interrelated ideas or
principles forming a complex whole in an
organization.
CLOSED SYSTEMS
• It is a system that is totally isolated from
its environment, meaning it has no effects
outside its boundaries , and the
environment has no effect on the
processes of the system.
• . A closed system has an impermeable
boundary that is strictly controlled or even
restricts the acceptance or dispensing of
data. It is a system which maintains itself
on a limited amount of resources that are
firmly established in that particular system
hence being difficult to change it.
• This system conceives of the organization as a
system of management, technology, personnel,
equipment and materials but tend to exclude
competitors, suppliers, distributors and
governmental regulators. This approach allows
managers and organizational theorists to
analyses problems by examining the internal
structure of business with little consideration
of external environment
•
Characteristics of closed systems
• It has no interfaces
• It has got strict impermeable boundaries
which are also rigid
• There is no interaction with the
environment
• Views organizations as relatively
independent of environmental influences
•
Benefits of system
• There are no disturbances in the system
• Its highly effective and efficient
Limitations
• It is not practical in its nature
Examples
• A watch in that the battery is the only
input used to produce output, time without
any other form of input coming from other
sources.
• Robot..
RELATIVELY CLOSED SYSTEMS
• These are systems which interact with the
environment in a known and controlled
way. Inputs from the environment that are
used in the system are closely monitored
so as to avoid disturbances in the
processes of the system.
• Predefined inputs
System
• Unknown inputs
outputs
Characteristics
• It does not eliminate susceptibility to the
environment
• It contains interfaces
• There are adequate control measures in
the system
• It allows for a reasonable level of sharing
and exchange of information
System 1
Interface
Permeable boundary
System 2
permeable boundary
environment
Benefits of system
• It is well designed as it is able to both
interact with its environment and the same
time be able to control inputs to ensure
safety
• It is able to meet user needs as they are
able to take inputs for development purposes
• It minimizes the impact of disturbances as
there are control measures
• E.g. pastel
OPEN SYSTEMS
• These are systems that continuously interact
with their environment but the Interaction is
not controlled.
• It takes place in the form of information,
energy, material transfer into and out of the
system boundary, depending on the discipline
which defines the concept.
• Product subsystems convert inputs into
marketable outputs with the goal of aiding the
company adaptation to external conditions in
its environment.
• An open system is also a region of space
characterized by a collection of
components or elements related in some
way, specializing in supporting small and
medium sized business with all of their
information system, communication and
business needs.
• Hence its resources are exchanged on a regular basis.
In contrast to closed system, open systems
perspective views an organization as an entity that
takes input from environment, transform it and
releases output to the environment with reciprocal
effects on the organization itself along with the
environment in which it operates.
Companies use inputs as labor, funds, equipment
and materials to produce goods and provide
services, designing subsystems to attain their goals.
Characteristics of open systems
• There is importation of energy from the
environment, eg, resources and people
• Through put ,that is, transforming the resources
available into something useful
• Output, exporting some of the resources to the
environment
• Differentiation , specialization, integration and
coordination of outputs made
• They have flexible boundaries since it interact with the
environment.
• It contains subsystems which help in converting
input into output
Benefits of system
• They promote effective problem solving
• There is continuous feedback and response
results which help in better planning,
intelligent designs, useful products and
necessary relevant services
• Subsystems help in resolving conflicts as
well as allocating resources
Limitations
• The system has disturbances of
uncontrolled inputs that affect the
processed resources within the system
• Example
• An example is the internet whereby one is
able to contribute his or her ideas and
download stuff from the internet.
FEEDBACK CONTROL SYSTEMS
• This is system which allows for feedback,
meaning that a portion of the systems
output is retained and used as input again
to the system.
• This part of the output which is used as
input again is what we call the feedback.
• A feedback control system often uses the
function of a prescribed relationship between
the output and reference input to control the
process of resources in that system.
• The difference between the output of the
process under control and the reference input
is amplified and used to control the process
so that the difference is continuously reduced.
Characteristics of system
• Output can be retained and used as input
again
• Provides feedback
• Uses interfaces to permeate information
bottom up and top down
Advantages of system
• Many systems are subject to extraneous disturbances
which causes the system to provide an inaccurate
output hence feedback control systems have the
beneficial aspect that the effect of distortion, noise
and unwanted disturbances can be effectively reduced.
• It provides management with meaningful information
on how effective its planning effort was. If feedback
system indicates little variance between standard and
actual performance, this is evidence that planning was
generally target.
• Feedback control systems can help enhance employee’s
motivation.
Disadvantages of system
• It is expensive to set up, and the cost of feedback
is first manifested in the increased number of
components and the complexity of the system.
• The major drawback is the time the manager may
get the information, the damage might already
have been done thus making the feedback
irrelevant.
• An example is that of a retail shop. Once the barcode
scanner scans a product at the till the data is reflected
in the system , this information is then used in the
stores department showing the amount of stock
remaining in hand.