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Chap 2

This document discusses the role of information technology in managing costs and finances. It covers capturing and processing cost and management accounting data using computer systems. It describes advantages of computers like speed, accuracy, and ability to process large volumes of complex data. It also discusses data storage devices, input methods, and output devices used in computer systems. Finally, it discusses management information systems and their importance in distributing useful and timely information to managers to support decision making.

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0% found this document useful (0 votes)
67 views

Chap 2

This document discusses the role of information technology in managing costs and finances. It covers capturing and processing cost and management accounting data using computer systems. It describes advantages of computers like speed, accuracy, and ability to process large volumes of complex data. It also discusses data storage devices, input methods, and output devices used in computer systems. Finally, it discusses management information systems and their importance in distributing useful and timely information to managers to support decision making.

Uploaded by

LinyVat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

CHAPTER 2

The Role of Information


Technology

MA 2 – Managing Costs and Finances


Lecturer: Christine Colon, ACCA, MSc

LOG
O
LOGO

 Role of information technology


 Capturing and processing cost and
management accounting data
 Storing cost and management
accounting data
 Outputting cost and management
accounting data
 Management information systems
LOGO
The Role of Information Technology

Information for
Data Organize, Calculate Decision Makers
Inputs Processes Outputs

Store

To do all this you need a computer system

3
LOGO
Advantages of Computers

 Speed – process transactions and


data in large volume very much faster
and cheaper than humans – can
produce information timely..
 Accuracy – if programmed correctly,
the computer is accurate almost all
the time.
LOGO
Advantages of Computers
 Volume and complexity – can process
almost infinite transactions of high
complexity.
 Access to information – users can easily
access and use information stored from
anywhere if the database is linked to the
internet.

Disadvantage of computers
Computers lack human judgement and are susceptible
to human error in input
Capturing and Processing Data
Automated data capture -
directly by an input device
without using a keyboard.
•Using document readers
Magnetic strips (OMR, MICR, OCR)
•Bar code readers
Smart cards
Origination – ie •Scanning pictures
transactions •EFTPOS
giving rise to data
Data input.
Methods should be fast,
cheap and with few errors

Transcription –
convert data in Keyboard with VDU
originating (GUI)
document to a Card reading devices
format for data
Touch screens
entry by staff
Voice recognition
Graphic User Interface
6
LOGO
Capturing and processing data
Data input methods examples
 GUI: Windows, pull down menu, icons, dialogue
boxes
 Document reading methods such as magnetic
stripe card or smart cards
 Card reading devices:
 MICR – magnetic ink character recognition
 OMR – optical mark reading
 Scanners and OCR – optical character
recognition
 BAR coding and EPOS – electronic point of sale
 EFTPOS – electronic funds transfer at point of
sale
LOGO
Capturing and processing data
 VDU- Video display Unit (monitor)
 Displays texts and graphics

 GUI- Graphical User Interface (deals with buttons,


textbox, graphic- based not text-based)
LOGO
Capturing and processing data
 OMR- Optical Mark Recognition- involves a pre-
printed form marked with a pen
LOGO
Capturing and processing data
LOGO
Capturing and processing data
OCR- Optical Character Recognition
(convert print into text)
LOGO
Capturing and processing data
POS- Point of Sale

EPOS- Electronic Point of Sale (place where retail


transaction is completed)

EFTPOS- Electronic Fund Transfer at Point of


Sale (Fund transfer based on the use of payment
cards)
LOGO
Storage Devices
hold data in the machine in a sensible
form until needed for further processing

Tape Disks
storage Hard disk
Floppy disks
Zip disk

DATA
STORAGE
CD / DVD
Memory sticks
LOGO
Output Devices

VDU
PRINTERS

Factors to consider when choosing output medium

Is hard copy required?


Quality required
Volume of production
Speed of output
Suitability of output medium
Cost
LOGO
Management Information Systems

Collection of hardware and software


to store and process data and provide
information on screen and print outs
to management.

15
LOGO
Management Information Systems

PC PC

 Departmental IS Unix
Enterprise
Server

 Enterprise-Wide IS Hub
PC

 Inter-Organizational IS Serial Terminals

In-house operations

Mux Thin
Client

Not confined to accounting Thin

information Client

Includes DIALUP/T1/T3/ISDN/FRAME RELAY

DIALUP/T1/T3/ISDN/FRAME RELAY

Operations
Mux

 Thin Client
PC
Mux

Thin Client
Appliance PC

 Accounting Appliance Appliance


Unix Server
Enterprise Store 3

 Finance Server
On-line Multi-station Store
Appliance
Server
Store 3
Store Location 1
On-line Multi-station Store

 Marketing Online Telenet System using the Internet


Store Location 2

 Human resources
16
LOGO
Importance of Planned MIS

• MIS distributes useful information to managers for them


to do their work properly.
• Bad information = bad decisions or no decisions.

MIS must be planned so that:


• Information is communicated timely.
• All relevant information is given to the appropriate staff
that needs it.
• There is reference available in the event of staff changes
(i.e. the staff that left do not take away important
information that is only kept in his/her head).

17
LOGO

end of lecture

18
LOGO
The Role of Information Technology

REVIEW
QUESTIONS
LOGO
Review Questions

Printers which print a whole page at a time


are known as:

A Bubble jet printers


B Inkjet printers
C Scanners
D Laser Printers
LOGO
Review Questions

Which of the following is an output device?

A Screen
B Keyboard
C CPU
D Disk
LOGO
Review Questions

A method of input which involves a machine


that is able to read characters by using lasers
to detect the shape of those characters is
known as:

A MICR
B OCR
C OMR
D CPU
LOGO
Review Questions

Which of the following factors may affect the choice


of computer output medium?
(i) Whether a hard copy of the output is required
(ii) Whether the output requires further computer
processing
(iii) Whether a large volume of output is to be used
for reference purposes

A (i) and (ii) only


B (i) and (iii) only
C (ii) and (iii) only
D All three factors
LOGO
Review Questions

Data input has three stages. One of these is


the origination of data. Select from the
choices below the TWO which correctly
describe the other two stages.

A Translation of data
B Transcription of data
C Inputting of data
D Formatting of data
LOGO
Review Questions

Which of the following choices does the


following describe?
“A physically small external storage device
usually connected via a USB port.”

A DVD
B CD-ROM
C Memory stick
D Zip Disk
LOGO

thank you!

26

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