,Instructor’s Solutions
Manual
ACCOUNTING
INFORMATION
SYSTEMS
15TH EDITION
, MARSHALL B. ROMNEY
PROFESSOR EMERITUS, BRIGHAM YOUNG UNIVERSITY
PAUL JOHN STEINBART
PROFESSOR EMERITUS, ARIZONA STATE UNIVERSITY
SCOTT L. SUMMERS
BRIGHAM YOUNG UNIVERSITY
DAVID A. WOOD
BRIGHAM YOUNG UNIVERSITY
.
, chapter 1 c
accounting information c
systems: An overview
c c c
Suggested cAnswers cto cDiscussion cQuestions
1.1 The cvalue cof cinformation cis cthe cdifference cbetween
cthe cbenefits crealized cfrom cusing cthat cinformation
cand cthe ccosts cof cproducing cit. c Would cyou, cor cany
corganization, cever cproduce cinformation cif cits
cexpected ccosts cexceeded cits cbenefits? c If cso,
cprovide csome cexamples. c If cnot, cwhy?
Most corganizations cproduce cinformation conly cif cits
cvalue cexceeds cits ccost. c However, cthere care ctwo
csituations cwhere cinformation cmay cbe cproduced ceven cif
cits ccost cexceeds cits cvalue.
a. It cis coften cdifficult cto cestimate caccurately cthe
cvalue cof cinformation cand cthe ccost cof cproducing
cit. cTherefore, corganizations cmay cproduce
cinformation cthat cthey cexpect cwill cproduce
cbenefits cin cexcess cof cits ccosts, conly cto cbe
cdisappointed cafter cthe cfact.
b. Production cof cthe cinformation cmay cbe cmandated cby
ceither ca cgovernment cagency cor ca cprivate
corganization. c Examples cinclude cthe ctax creports
crequired cby cthe cIRS cand cdisclosure crequirements
cfor cfinancial creporting.
1.2 Can cthe ccharacteristics cof cuseful cinformation clisted
cin cTable c1-1 cbe cmet csimultaneously? c Or cdoes
cachieving cone cmean csacrificing canother?
Several cof cthe ccriteria cin cTable c1.1 ccan cbe cmet
Manual
ACCOUNTING
INFORMATION
SYSTEMS
15TH EDITION
, MARSHALL B. ROMNEY
PROFESSOR EMERITUS, BRIGHAM YOUNG UNIVERSITY
PAUL JOHN STEINBART
PROFESSOR EMERITUS, ARIZONA STATE UNIVERSITY
SCOTT L. SUMMERS
BRIGHAM YOUNG UNIVERSITY
DAVID A. WOOD
BRIGHAM YOUNG UNIVERSITY
.
, chapter 1 c
accounting information c
systems: An overview
c c c
Suggested cAnswers cto cDiscussion cQuestions
1.1 The cvalue cof cinformation cis cthe cdifference cbetween
cthe cbenefits crealized cfrom cusing cthat cinformation
cand cthe ccosts cof cproducing cit. c Would cyou, cor cany
corganization, cever cproduce cinformation cif cits
cexpected ccosts cexceeded cits cbenefits? c If cso,
cprovide csome cexamples. c If cnot, cwhy?
Most corganizations cproduce cinformation conly cif cits
cvalue cexceeds cits ccost. c However, cthere care ctwo
csituations cwhere cinformation cmay cbe cproduced ceven cif
cits ccost cexceeds cits cvalue.
a. It cis coften cdifficult cto cestimate caccurately cthe
cvalue cof cinformation cand cthe ccost cof cproducing
cit. cTherefore, corganizations cmay cproduce
cinformation cthat cthey cexpect cwill cproduce
cbenefits cin cexcess cof cits ccosts, conly cto cbe
cdisappointed cafter cthe cfact.
b. Production cof cthe cinformation cmay cbe cmandated cby
ceither ca cgovernment cagency cor ca cprivate
corganization. c Examples cinclude cthe ctax creports
crequired cby cthe cIRS cand cdisclosure crequirements
cfor cfinancial creporting.
1.2 Can cthe ccharacteristics cof cuseful cinformation clisted
cin cTable c1-1 cbe cmet csimultaneously? c Or cdoes
cachieving cone cmean csacrificing canother?
Several cof cthe ccriteria cin cTable c1.1 ccan cbe cmet
