Accounting Information in Decision Making Proces

Question: Discuss about the Accounting Information in Decision Making Proces. Answer: Introduction: It is described as a formal system for assembling data, then processing it so that it can be distributed then distributing it to the users. The main function is to assemble, store, and then process the data whether it is financial or accounting and then it produces reports or graphs so that the managers or third parties can use it for any reliable or needed information. Although an AIS can be a labour-intensive organisation, but most accounting information organisations are computer-oriented. AIS make sure that the controls are effectively placed so that correct records can be generated. It stores information that is beneficial for decision making counting reports .It uprights data from journal to ledgers and produce genuine or accurate information (Wiley, 2013). Role Of An Ais In The Value Chai N Of Manufacturing Organisation Accounting information system assemble, record, stock, and develop data to produce evidences for decision makers like the investors or the third parties. These can be termed as a set of components which are involved together to form a goal. Knowledge is simply a tool to generate, uphold, or improvise a system. It offer value and is a crucial part of value chain. It means making the price of the end component greater than the entirety of its parts. It just makes it faster and makes it more reliable and efficient. It gives better service, provides something, which is in short supply, gives us some advanced features and then at the end modifies it. Value means just adding a worth to it and it can be done through two activities mainly primary, which consists of operation, marketing, sales, and services. In addition, secondary like infrastructure, technology and purchasing. AIS creates good and reliable contacts with suppliers vendors, it delivers precise and timely material so that the f ive primarily value chain actions can be achieved more successfully and more resourcefully with proper conclusion making capabilities, increasing the distribution of knowledge. It increases the sustainability of supply chain and improves the quality of the products. The eventual goalmouth of any business is to create value to its cusomers. A business will only generates profits if the value that it generates is much more higher than the cost of producing it and AIS helps in creating it by managing the process effectively by creating a value These activities are occasionally referred to as line and staff events respectively. An administration value chain can be associated with the value chains of its consumers, contractors, suppliersand wholesalers. Information technology can actually give way to efficient effective to the activities that are being carried out (Li, 2014). Ais Assist With Decision Making In Contemporary Manufacturing Organisation The development in material system components all over the universe has made corporate associations to exert properties in this area if they are to compete positively between their local and distant colleagues. An accounting system is an important operative decision assembly devices of management as it gives an arranged procedure of gathering and systematising information about the various business communications and so that it may be used as an support to administration in operating the business. AIS help the top authorities and the managers to understand their tasks more unmistakably and give chances to diminish uncertainty before making their decisions. This system is vital to all organisations and very important even it is profit oriented or not(Grazia, n.d.). Everybody needs to maintain an Accounting Information System as no organisation is excluded from result making in his or her procedures. In current era, a new system has emerged that does not break at restrictions of facts and economic evidence, but also it contains data and detailed and measureable material, which is useful in decision making for users dissimilar with multiplicity and assortment. The AIS derives its foundation from the accounting information. AIS after collecting, storing gives us the result that gives as the exact information and it develops decision-making process. We can easily say that Accounting Information System is not an end in themself but a means to expiration. In other words, it can be said decision-making helps us in making the commercial and corporate information more good that leads to good performance of the company. Therefore, AIS provides us with the comprehensive and understandable accounting statistics or information, which becomes a basis for decision-making (Babatunde, 2013). Value Chain To Provide A Competative Advantage For A Manufacturing Organisation The ultimate objective of business is to produce value for the consumers. Value chain is a policy tool and is an original Porter concept used to analyse inner businesss accomplishments. Its duty is to see which activities are most efficient and valuable to the firm and it takes in to consideration as to which activities needs to be improves tie generate, find and develop competitive advantage. There are two types of competitive advantage Competitive advantage that comes from disparity giving some type of distinctive value to some customers. Competitive advantage that arises from having the cost guidance situation. The advantages are that the business done is better than the competitors are and done little bit different It creates benefits, which are not similar with lower cost. Competitive advantage cannot be assumed by looking at the firm as a whole. Designing, marketing, production, can only identify it. Each of this contributes a basis for variation. Value chain is divided in to two parts primary and support value activities. Primary activities consist of incoming logistics, procedures, outbound logistics, and marketing and after sale service. Whereas support activities consists of locating, technological procedures, resources and infrastructure. The crux of the value chain is that one recognizes how the business associates with competitors at a broader, large level. By talking to ex-employees, suppliers, consumers, we can create competitive benefit. There is no receiving away from the knowledge that competitive advantages and weaknesses moves from the activities someone does in business bu t one can only understand them and how they associated with each other by doing value chain analysis (Simister, 2011.). References Wiley, C. (2013). What are accounting information systems?. Retrieved 30 November 2016 from https://www.accountingedu.org/accounting-information-systems.html Babatunde, Y. (2013). Accounting Information System as an Aid to Decision Making. Retrieved 30 November 2016 from file:///C:/Users/com/Downloads/aus-29-152i03n9a3.pdf Simister, P. (2011). Using Value chain analysis to create competitive analysis. Retrieved 30 November 2016 https://www.differentiateyourbusiness.co.uk/using-value-chain-analysis-to-create-competitive-advantage Li, H. (201). Role played by AIS in Value chain. Retrieved 30 November 2016 from https://prezi.com/li-d4bfropuv/the-role-played-by-accounting-information-system-ais-in-an/ Grazia, Petroianu. . The Role of Accounting Information in the Decision Making Process .Retrieved 30 November 2016 from https://ideas.repec.org/a/ovi/oviste/vxiiy2012i12p1594-1598.html