Accounting Information Systems Springer Science & Business Media

Question: Describe about the Accounting Information Systems for Springer Science Business Media. Answer: Introduction This study deals with understanding the concept on Accounting Information Systems. In this particular assignment, emphasis has been given on understanding role of Accounting Information Systems in a contemporary manufacturing organization (Rainer et al., 2013). Accounting Information Systems consist of people, data, software as well as procedures and Information Technology. Accounting Information System performs several functions in contemporary manufacturing organization. This involves collection as well as storage of data regarding activities and transactions for future analysis purpose. It also takes into consideration processing of data into information useful at decision-making process. Therefore, Accounting Information System renders adequate controls for safeguarding the organization assets in the most appropriate way. Study of Accounting Information System is important because it is defined as an information system (Ismail King, 2014). 1. Role of Accounting Information Systems in the value chain of a manufacturing organization The main goal of any manufacturing organization aims at providing value to its potential targeted customers. A manufacturing organization is profitable if value created by the organization is greater than the produced cost of its goods as well as services (Hall, 2012). Value Chain Model and the Supply Chain Figure: Value Chain Model used in Manufacturing Organization (Source: Fullerton, Kennedy Widener, 2013) Accounting Information Systems adds value in way of rendering accurate as well as timely information. This can be performed by using five primary value chain activities in an effective and efficient way. Therefore, this help in improving the quality as well as reducing the cost of products or services in a contemporary manufacturing organization (Demski, 2013). Role of Accounting Information in value chain of a manufacturing organization help in improving efficiency, improving decision-making capabilities as well as increasing sharing of knowledge. Well-designed Accounting Information Systems helps contemporary manufacturing organization profit by enhancing the efficiency as well as effectiveness of its supply chain (Davenport, 2013). 2. Accounting Information Systems assisting decision making in a contemporary manufacturing organization There are major three basic functions performed by Accounting Information Systems that enhances the decision-making process especially in a contemporary manufacturing organization (Collier, 2015). Accounting Information Systems conducts effective as well as efficient data processing regarding manufacturing organization transactions. This enables capturing of data based on source documents (Bajdor Grabara, 2014). In other words, it takes into consideration recording of transactions in journals as well as presented in a chronological record. Therefore, past data is recorded from journals to ledgers as well as sorted data based on account types. Accounting Information Systems provides management with information those is useful in decision-making process (Rainer et al., 2013). As far as manual systems is concerned, relevant information is mentioned in the form of reports and comes under two major categories namely Financial Statements as well as Managerial Reports for contemporary manufacturing organization Accounting Information Systems help in providing adequate internal controls. In other words, it ensures that the information produced is reliable in nature. It enhances the business activities in aligning with management objectives in a contemporary manufacturing organization (Ismail King, 2014). Therefore, it majorly takes into account regarding safeguarding the organizational assets in an effective way. 3. How value chain can be used for providing competitive advantage in a contemporary manufacturing organization Accounting Information Systems aims at offering value and considered as vital part of value chain (Ismail King, 2014). Adding value is a common word but it means faster, reliable as well as rendering better services or advice at the same time. It literally means limited supply as well as rendering enhancing features for customization. Value is termed as performing a series of activities known as value chain. This majorly involves primary activities as well as support activities. Information Technology majorly affects the efficiency as well as effectiveness whereby preceding activities are carried out in a similar form. Manufacturing organization value chain can be connected by creating value chain to its potential customers, distributors as well as suppliers (Rainer et al., 2013). Competitive Advantage can be either cost or differentiation that functions because of a manufacturing organization value chain. Cost of a company reflects upon the collective cost for performing all value activities in relative to its rivals (Rainer et al., 2013). Each of the value drivers are connected by determining the potential sources of cost advantage. Therefore, manufacturing organization ability in reflecting the contribution for single value activity and acting as a competitive advantage at the same time Due to this competitive advantage, companies differ in terms of products, services and offers (Demski, 2013). Competitive scope has major four types such as segment scope, industry scope as well as geographic scope and vertical scope. In order to gain competitive advantage, companys makes strategies for either lowering its cost or leading way in differentiation and premium pricing policies at the same time (Rainer et al., 2013). Conclusion At the end of the study, it is concluded that Accounting Information Systems is advantageous in any manufacturing organization. The major objective of accounting is providing information that is useful for the decision makers. In other words, accounting is regarding information identification as well as communication process and developmental activities. The above discussion successfully analysed the role of Accounting Information Systems in the value chain of a contemporary manufacturing organization. This accounting system assists widely in decision-making activities in contemporary manufacturing organization. Therefore, use of value chain helps manufacturing organization in gaining competitive advantage in an effective way. Reference List Bajdor, P., Grabara, I. (2014). The Role of Information System Flows in Fulfilling Customers Individual Orders.Journal of Studies in Social Sciences,7(2). Collier, P. M. (2015).Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Davenport, T. H. (2013).Process innovation: reengineering work through information technology. Harvard Business Press. Demski, J. (2013).Managerial uses of accounting information. Springer Science Business Media. Fullerton, R. R., Kennedy, F. A., Widener, S. K. (2013). Management accounting and control practices in a lean manufacturing environment.Accounting, Organizations and Society,38(1), 50-71. Hall, J. A. (2012).Accounting information systems. Cengage Learning. Ismail, N. A., King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms.Journal of Information Systems and Small Business,1(1-2), 1-20. Rainer, R. K., Cegielski, C. G., Splettstoesser-Hogeterp, I., Sanchez-Rodriguez, C. (2013).Introduction to information systems: Supporting and transforming business. John Wiley Sons.