Accounting Information Systems 3rd Edition – Complete Test Bank All Chapters | Verified 100% Original | A+ Grade Study Guide – Richardson, Chang & Smith | ISBN 978-1260571080

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Accounting Information Systems 3e Vernon Richardson, Janie Chang, Rodney
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b Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At
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b The End Of Each
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Chapter b1:
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1) After a college football game, a box score is produced detailing the number of yards passing
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and running, receptions made and the number of interceptions and fumbles lost (among other
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statistics). Using the characteristics of useful information (including relevance and reliability),
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please explain how this box score meets (or does not meet) the characteristics of useful
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information. How would the football coach use this information to prepare for the next game,
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decide which players to start, etc.?
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Answer:

 Relevance: The statistics reflect the team’s and individual players’ performance, helping the
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coach make tactical decisions.
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 Reliability: If recorded accurately, the data reliably represents the game events.
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 Other characteristics: Timely (available soon after the game), understandable, and complete
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for key metrics.
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 Use by coach: Decide which players to start, identify areas for improvement, adjust game
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strategies, and plan training focus (e.g., more passing plays if running yards are low).
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2) List and explain three ways that AIS affects the income statement and the firm’s profitability.
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Answer:

1. Revenue tracking: Accurate recording ensures proper recognition of sales, impacting net
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income.
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2. Expense monitoring: Tracks costs like payroll, utilities, and COGS, allowing management to
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control expenses and improve profitability.
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3. Financial reporting: Timely, reliable reports allow managers to analyze profit margins and
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make informed strategic decisions to maximize profits.
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3) Some would argue that the role of accounting is simply as an information provider. Others
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suggest that accountants serve the role of business analyst. Which role produces more value for
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a company like Starbucks? In the area of accounting information systems, what specifically can
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the accountant do to serve as a business analyst to help address business opportunities?
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Answer:

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 More value: Business analyst role, as it provides actionable insights for strategic decisions.
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 Specific AIS tasks: b b


o Analyze sales and loyalty card data to identify top-selling products.
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o Forecast inventory needs and optimize supply chain. b b b b b b


o Suggest marketing strategies based on customer trends.
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o Evaluate profitability of new stores or promotions. b b b b b b




4) Explain the types of discretionary information a company like Google would collect from its
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accounting information system.
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Answer:

 Customer trends and preferences (ad clicks, app usage, searches).
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 Profitability analysis by product or service.
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 Forecasting and budgeting data. b b b


 Cost-benefit analysis for projects and investments.
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 Strategic insights for new product launches or market expansion.
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5) Why would the transform IT strategic role be more impactful on stock price than the automate
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IT strategic role?
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Answer:

 Automate IT: Improves efficiency and reduces operational costs.
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 Transform IT: Enables new business models, creates revenue streams, and provides
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bcompetitive advantage. b


 Impact: Investors value growth and innovation, so transformational IT has a greater effect on
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bstock price than simple automation.
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6) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’
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ability to mine its customer data to help “reignite our passion with our customers.” Starbucks
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used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and
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b build profiles of their customers as mentioned in the opening chapter vignette. Why is this a
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b good example of customer relationship management (CRM)?
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Answer:

 Tracks individual customer purchases, preferences, and frequency.
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 Builds detailed customer profiles for targeted promotions.
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 Enables personalized offers and communications, increasing customer loyalty.
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 Drives repeat business and strengthens the customer relationship, the core goal of CRM.
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7) Michael Dell of Dell Computer explained: “We tell our suppliers exactly what our daily
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production requirements are so it is not, "Well, every two weeks deliver 5,000 to this
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warehouse, and we'll put them on the shelf, and then we'll take them off the shelf." It is,
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"Tomorrow morning we need 8,562, and deliver them to door number seven by 7 am." How
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does the supply chain management software allow this to happen? And how does it save Dell
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money?
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Answer:

 SCM software provides real-time visibility into production and inventory.
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 Suppliers receive exact daily production requirements for just-in-time delivery.
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 Saves money by reducing inventory storage costs, minimizing overstock, and preventing
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stockouts.
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8) Amazon.com is one of the best at fostering its interaction with their customers by keeping a
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record of their past purchases and product searches and using that information to recommend
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other similar products for the customer to consider. How can they use that information to help
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them in their marketing efforts?
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Answer:

 Tracks customer behavior (searches, purchases, browsing).
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 Recommends related or complementary products (cross-selling/upselling).
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 Creates personalized marketing campaigns and targeted email promotions.
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