,
, th
End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
d. unearned revenue.
Answer: A
11. (LO 1-7) The software/system that helps make sure the retail firm doesn’t have a stockout is
a. supply chain management software.
b. customer relationship management software.
c. enterprise systems.
d. human resource systems.
Answer: A
12. (LO 1-9) Data analytics performed to identify the most profitable customers would be
most likely to affect which income statement account?
a. Selling, general, and administrative expenses (SG&A)
b. Interest expense
c. Revenues
d. Cost of goods sold
Answer: C
13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered
to be an
a. internal business process.
b. external business process.
c. interior business process.
d. exterior business process.
Answer: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which
role with respect to accounting information systems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision
according to the information value chain?
a. Data ➛ Information ➛ Knowledge ➛ Decision
b. Data ➛ Knowledge ➛ Information ➛ Decision
3
, th
End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
c. Data ➛ Business event ➛ Information ➛ Decision
d. Data ➛ Analysis ➛ Information ➛ Decision
Answer: A
Discussion Questions
1. Brainstorm a list of discretionary information that might be an output of an accounting
information system and be needed by Starbucks. Prioritize which items might be most
important and provide support.
Answers will vary. Here are some potential answers:
The cost of a cup of coffee, by type: Breakfast blend, Cafe estima, caffe Verona, espresso roast,
Ethiopia sidamo, French roast, Gold Coast blend, Guatemala Antigua, house blend, Italian
roast, Kenya coffee, komodo dragon blend, organic Serena blend, organic shade grown
Mexico, Sumatra, decaf caffe Verona, decaf espresso roast, decaf house blend, and decaf
Sumatra!
Monthly Sales per square foot of retail space.
Employee cost for each operating hour.
Advertising expenditures per dollar of sales.
The cost of condiments per dollar sales of coffee. Condiments might include sweeteners, liquid
creamers, cream canisters, sugar packets, sugar canisters, stir sticks!
The cost of electricity per operating hour each month of the year.
2. Explain the information value chain. How do business events turn into data then into
information and then into knowledge? Give an example starting with the business event of the
purchase of a Super Smash Bros. Nintendo Switch Game at GameStop all the way to giving
useful information for the CEO and other decision makers.
The information value chain represents the overall transformation from a business need and
business event (like each individual sale of U.S. flag) to an ultimate decision. The information
value chain might be represented considering the purchase of a Nintendo Switch Game at Best
Buy in the following way:
The game will be recorded as sales revenue and then after deducting its costs will add to or
subtract from corporate income. The cash from the game sale will also add to the operating
cash flows.
4
, th
End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
d. unearned revenue.
Answer: A
11. (LO 1-7) The software/system that helps make sure the retail firm doesn’t have a stockout is
a. supply chain management software.
b. customer relationship management software.
c. enterprise systems.
d. human resource systems.
Answer: A
12. (LO 1-9) Data analytics performed to identify the most profitable customers would be
most likely to affect which income statement account?
a. Selling, general, and administrative expenses (SG&A)
b. Interest expense
c. Revenues
d. Cost of goods sold
Answer: C
13. (LO 1-7, LO 1-9) Customer relationship management systems would generally be considered
to be an
a. internal business process.
b. external business process.
c. interior business process.
d. exterior business process.
Answer: B
14. (LO 1-3) An auditor testing internal controls would generally be considered to fill which
role with respect to accounting information systems?
a. User
b. Manager
c. Designer
d. Evaluator
Answer: D
15. (LO 1-2) Which of these represents the proper transformation from data to decision
according to the information value chain?
a. Data ➛ Information ➛ Knowledge ➛ Decision
b. Data ➛ Knowledge ➛ Information ➛ Decision
3
, th
End of Chapter Solutions Manual: Richardson, Chang, Smith, Accounting Information Systems, 4 edition
c. Data ➛ Business event ➛ Information ➛ Decision
d. Data ➛ Analysis ➛ Information ➛ Decision
Answer: A
Discussion Questions
1. Brainstorm a list of discretionary information that might be an output of an accounting
information system and be needed by Starbucks. Prioritize which items might be most
important and provide support.
Answers will vary. Here are some potential answers:
The cost of a cup of coffee, by type: Breakfast blend, Cafe estima, caffe Verona, espresso roast,
Ethiopia sidamo, French roast, Gold Coast blend, Guatemala Antigua, house blend, Italian
roast, Kenya coffee, komodo dragon blend, organic Serena blend, organic shade grown
Mexico, Sumatra, decaf caffe Verona, decaf espresso roast, decaf house blend, and decaf
Sumatra!
Monthly Sales per square foot of retail space.
Employee cost for each operating hour.
Advertising expenditures per dollar of sales.
The cost of condiments per dollar sales of coffee. Condiments might include sweeteners, liquid
creamers, cream canisters, sugar packets, sugar canisters, stir sticks!
The cost of electricity per operating hour each month of the year.
2. Explain the information value chain. How do business events turn into data then into
information and then into knowledge? Give an example starting with the business event of the
purchase of a Super Smash Bros. Nintendo Switch Game at GameStop all the way to giving
useful information for the CEO and other decision makers.
The information value chain represents the overall transformation from a business need and
business event (like each individual sale of U.S. flag) to an ultimate decision. The information
value chain might be represented considering the purchase of a Nintendo Switch Game at Best
Buy in the following way:
The game will be recorded as sales revenue and then after deducting its costs will add to or
subtract from corporate income. The cash from the game sale will also add to the operating
cash flows.
4
