https://www.stuvia.com/user/wisenurse
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
b b b b b b b b b b b
b The End Of Each
b b b b
Chapter b1:
1 b| bP a g e
https://www.stuvia.com/user/wisenurse
,https://www.stuvia.com/user/wisenurse
1) After a college football game, a box score is produced detailing the number of yards passing
b b b b b b b b b b b b b b b b
and running, receptions made and the number of interceptions and fumbles lost (among other
b b b b b b b b b b b b b b
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
b b b b b b b b b b b b b b b
information. How would the football coach use this information to prepare for the next game,
b b b b b b b b b b b b b b b
decide which players to start, etc.?
b b b b b b
Answer:
Relevance: The statistics reflect the team’s and individual players’ performance, helping the
b b b b b b b b b b b
coach make tactical decisions.
b b b b
Reliability: If recorded accurately, the data reliably represents the game events.
b b b b b b b b b b
Other characteristics: Timely (available soon after the game), understandable, and complete
b b b b b b b b b b
for key metrics.
b b b
Use by coach: Decide which players to start, identify areas for improvement, adjust game
b b b b b b b b b b b b b
strategies, and plan training focus (e.g., more passing plays if running yards are low).
b b b b b b b b b b b b b b
2) List and explain three ways that AIS affects the income statement and the firm’s profitability.
b b b b b b b b b b b b b b b
Answer:
1. Revenue tracking: Accurate recording ensures proper recognition of sales, impacting net
b b b b b b b b b b
income.
b
2. Expense monitoring: Tracks costs like payroll, utilities, and COGS, allowing management to
b b b b b b b b b b b
control expenses and improve profitability.
b b b b b
3. Financial reporting: Timely, reliable reports allow managers to analyze profit margins and
b b b b b b b b b b b
make informed strategic decisions to maximize profits.
b b b b b b b
3) Some would argue that the role of accounting is simply as an information provider. Others
b b b b b b b b b b b b b b b
suggest that accountants serve the role of business analyst. Which role produces more value for
b b b b b b b b b b b b b b b
a company like Starbucks? In the area of accounting information systems, what specifically can
b b b b b b b b b b b b b b
the accountant do to serve as a business analyst to help address business opportunities?
b b b b b b b b b b b b b b
Answer:
2 b| bP a g e
https://www.stuvia.com/user/wisenurse
,https://www.stuvia.com/user/wisenurse
More value: Business analyst role, as it provides actionable insights for strategic decisions.
b b b b b b b b b b b b
Specific AIS tasks: b b
o Analyze sales and loyalty card data to identify top-selling products.
b b b b b b b b b
o Forecast inventory needs and optimize supply chain. b b b b b b
o Suggest marketing strategies based on customer trends.
b b b b b b
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
b b b b b b b b b b b b b b
accounting information system.
b b b
Answer:
Customer trends and preferences (ad clicks, app usage, searches).
b b b b b b b b
Profitability analysis by product or service.
b b b b b
Forecasting and budgeting data. b b b
Cost-benefit analysis for projects and investments.
b b b b b
Strategic insights for new product launches or market expansion.
b b b b b b b b
5) Why would the transform IT strategic role be more impactful on stock price than the automate
b b b b b b b b b b b b b b b b
IT strategic role?
b b b
Answer:
Automate IT: Improves efficiency and reduces operational costs.
b b b b b b b
Transform IT: Enables new business models, creates revenue streams, and provides
b b b b b b b b b b
bcompetitive advantage. b
Impact: Investors value growth and innovation, so transformational IT has a greater effect on
b b b b b b b b b b b b b
bstock price than simple automation.
b b b b
6) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’
b b b b b b b b b b b b b b
ability to mine its customer data to help “reignite our passion with our customers.” Starbucks
b b b b b b b b b b b b b b b
used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and
b b b b b b b b b b b b b b
3 b| bP a g e
https://www.stuvia.com/user/wisenurse
, https://www.stuvia.com/user/wisenurse
b build profiles of their customers as mentioned in the opening chapter vignette. Why is this a
b b b b b b b b b b b b b b b
b good example of customer relationship management (CRM)?
b b b b b b
Answer:
Tracks individual customer purchases, preferences, and frequency.
b b b b b b
Builds detailed customer profiles for targeted promotions.
b b b b b b
Enables personalized offers and communications, increasing customer loyalty.
b b b b b b b
Drives repeat business and strengthens the customer relationship, the core goal of CRM.
b b b b b b b b b b b b
7) Michael Dell of Dell Computer explained: “We tell our suppliers exactly what our daily
b b b b b b b b b b b b b b
production requirements are so it is not, "Well, every two weeks deliver 5,000 to this
b b b b b b b b b b b b b b b
warehouse, and we'll put them on the shelf, and then we'll take them off the shelf." It is,
b b b b b b b b b b b b b b b b b b
"Tomorrow morning we need 8,562, and deliver them to door number seven by 7 am." How
b b b b b b b b b b b b b b b b
does the supply chain management software allow this to happen? And how does it save Dell
b b b b b b b b b b b b b b b b
money?
b
Answer:
SCM software provides real-time visibility into production and inventory.
b b b b b b b b
Suppliers receive exact daily production requirements for just-in-time delivery.
b b b b b b b b
Saves money by reducing inventory storage costs, minimizing overstock, and preventing
b b b b b b b b b b
stockouts.
b
8) Amazon.com is one of the best at fostering its interaction with their customers by keeping a
b b b b b b b b b b b b b b b b
record of their past purchases and product searches and using that information to recommend
b b b b b b b b b b b b b b
other similar products for the customer to consider. How can they use that information to help
b b b b b b b b b b b b b b b b
them in their marketing efforts?
b b b b b
Answer:
Tracks customer behavior (searches, purchases, browsing).
b b b b b
Recommends related or complementary products (cross-selling/upselling).
b b b b b
Creates personalized marketing campaigns and targeted email promotions.
b b b b b b b
4 b| bP a g e
https://www.stuvia.com/user/wisenurse
Accounting Information Systems 3e Vernon Richardson, Janie Chang, Rodney
b b b b b b b b
b Smith (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At
b b b b b b b b b b b
b The End Of Each
b b b b
Chapter b1:
1 b| bP a g e
https://www.stuvia.com/user/wisenurse
,https://www.stuvia.com/user/wisenurse
1) After a college football game, a box score is produced detailing the number of yards passing
b b b b b b b b b b b b b b b b
and running, receptions made and the number of interceptions and fumbles lost (among other
b b b b b b b b b b b b b b
statistics). Using the characteristics of useful information (including relevance and reliability),
b b b b b b b b b b b
please explain how this box score meets (or does not meet) the characteristics of useful
b b b b b b b b b b b b b b b
information. How would the football coach use this information to prepare for the next game,
b b b b b b b b b b b b b b b
decide which players to start, etc.?
b b b b b b
Answer:
Relevance: The statistics reflect the team’s and individual players’ performance, helping the
b b b b b b b b b b b
coach make tactical decisions.
b b b b
Reliability: If recorded accurately, the data reliably represents the game events.
b b b b b b b b b b
Other characteristics: Timely (available soon after the game), understandable, and complete
b b b b b b b b b b
for key metrics.
b b b
Use by coach: Decide which players to start, identify areas for improvement, adjust game
b b b b b b b b b b b b b
strategies, and plan training focus (e.g., more passing plays if running yards are low).
b b b b b b b b b b b b b b
2) List and explain three ways that AIS affects the income statement and the firm’s profitability.
b b b b b b b b b b b b b b b
Answer:
1. Revenue tracking: Accurate recording ensures proper recognition of sales, impacting net
b b b b b b b b b b
income.
b
2. Expense monitoring: Tracks costs like payroll, utilities, and COGS, allowing management to
b b b b b b b b b b b
control expenses and improve profitability.
b b b b b
3. Financial reporting: Timely, reliable reports allow managers to analyze profit margins and
b b b b b b b b b b b
make informed strategic decisions to maximize profits.
b b b b b b b
3) Some would argue that the role of accounting is simply as an information provider. Others
b b b b b b b b b b b b b b b
suggest that accountants serve the role of business analyst. Which role produces more value for
b b b b b b b b b b b b b b b
a company like Starbucks? In the area of accounting information systems, what specifically can
b b b b b b b b b b b b b b
the accountant do to serve as a business analyst to help address business opportunities?
b b b b b b b b b b b b b b
Answer:
2 b| bP a g e
https://www.stuvia.com/user/wisenurse
,https://www.stuvia.com/user/wisenurse
More value: Business analyst role, as it provides actionable insights for strategic decisions.
b b b b b b b b b b b b
Specific AIS tasks: b b
o Analyze sales and loyalty card data to identify top-selling products.
b b b b b b b b b
o Forecast inventory needs and optimize supply chain. b b b b b b
o Suggest marketing strategies based on customer trends.
b b b b b b
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
b b b b b b b b b b b b b b
accounting information system.
b b b
Answer:
Customer trends and preferences (ad clicks, app usage, searches).
b b b b b b b b
Profitability analysis by product or service.
b b b b b
Forecasting and budgeting data. b b b
Cost-benefit analysis for projects and investments.
b b b b b
Strategic insights for new product launches or market expansion.
b b b b b b b b
5) Why would the transform IT strategic role be more impactful on stock price than the automate
b b b b b b b b b b b b b b b b
IT strategic role?
b b b
Answer:
Automate IT: Improves efficiency and reduces operational costs.
b b b b b b b
Transform IT: Enables new business models, creates revenue streams, and provides
b b b b b b b b b b
bcompetitive advantage. b
Impact: Investors value growth and innovation, so transformational IT has a greater effect on
b b b b b b b b b b b b b
bstock price than simple automation.
b b b b
6) Stephen Gillett, Starbucks CIO, argues that his most crucial duty is to enhance Starbucks’
b b b b b b b b b b b b b b
ability to mine its customer data to help “reignite our passion with our customers.” Starbucks
b b b b b b b b b b b b b b b
used loyalty cards (Starbucks’ Reward cards) and surveys to track its customers’ purchases and
b b b b b b b b b b b b b b
3 b| bP a g e
https://www.stuvia.com/user/wisenurse
, https://www.stuvia.com/user/wisenurse
b build profiles of their customers as mentioned in the opening chapter vignette. Why is this a
b b b b b b b b b b b b b b b
b good example of customer relationship management (CRM)?
b b b b b b
Answer:
Tracks individual customer purchases, preferences, and frequency.
b b b b b b
Builds detailed customer profiles for targeted promotions.
b b b b b b
Enables personalized offers and communications, increasing customer loyalty.
b b b b b b b
Drives repeat business and strengthens the customer relationship, the core goal of CRM.
b b b b b b b b b b b b
7) Michael Dell of Dell Computer explained: “We tell our suppliers exactly what our daily
b b b b b b b b b b b b b b
production requirements are so it is not, "Well, every two weeks deliver 5,000 to this
b b b b b b b b b b b b b b b
warehouse, and we'll put them on the shelf, and then we'll take them off the shelf." It is,
b b b b b b b b b b b b b b b b b b
"Tomorrow morning we need 8,562, and deliver them to door number seven by 7 am." How
b b b b b b b b b b b b b b b b
does the supply chain management software allow this to happen? And how does it save Dell
b b b b b b b b b b b b b b b b
money?
b
Answer:
SCM software provides real-time visibility into production and inventory.
b b b b b b b b
Suppliers receive exact daily production requirements for just-in-time delivery.
b b b b b b b b
Saves money by reducing inventory storage costs, minimizing overstock, and preventing
b b b b b b b b b b
stockouts.
b
8) Amazon.com is one of the best at fostering its interaction with their customers by keeping a
b b b b b b b b b b b b b b b b
record of their past purchases and product searches and using that information to recommend
b b b b b b b b b b b b b b
other similar products for the customer to consider. How can they use that information to help
b b b b b b b b b b b b b b b b
them in their marketing efforts?
b b b b b
Answer:
Tracks customer behavior (searches, purchases, browsing).
b b b b b
Recommends related or complementary products (cross-selling/upselling).
b b b b b
Creates personalized marketing campaigns and targeted email promotions.
b b b b b b b
4 b| bP a g e
https://www.stuvia.com/user/wisenurse
