CHAPTER 2
The Role of Information
Technology
MA 2 – Managing Costs and Finances
Lecturer: Christine Colon, ACCA, MSc
LOG
O
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Role of information technology
Capturing and processing cost and
management accounting data
Storing cost and management
accounting data
Outputting cost and management
accounting data
Management information systems
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The Role of Information Technology
Information for
Data Organize, Calculate Decision Makers
Inputs Processes Outputs
Store
To do all this you need a computer system
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Advantages of Computers
Speed – process transactions and
data in large volume very much faster
and cheaper than humans – can
produce information timely..
Accuracy – if programmed correctly,
the computer is accurate almost all
the time.
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Advantages of Computers
Volume and complexity – can process
almost infinite transactions of high
complexity.
Access to information – users can easily
access and use information stored from
anywhere if the database is linked to the
internet.
Disadvantage of computers
Computers lack human judgement and are susceptible
to human error in input
Capturing and Processing Data
Automated data capture -
directly by an input device
without using a keyboard.
•Using document readers
Magnetic strips (OMR, MICR, OCR)
•Bar code readers
Smart cards
Origination – ie •Scanning pictures
transactions •EFTPOS
giving rise to data
Data input.
Methods should be fast,
cheap and with few errors
Transcription –
convert data in Keyboard with VDU
originating (GUI)
document to a Card reading devices
format for data
Touch screens
entry by staff
Voice recognition
Graphic User Interface
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Capturing and processing data
Data input methods examples
GUI: Windows, pull down menu, icons, dialogue
boxes
Document reading methods such as magnetic
stripe card or smart cards
Card reading devices:
MICR – magnetic ink character recognition
OMR – optical mark reading
Scanners and OCR – optical character
recognition
BAR coding and EPOS – electronic point of sale
EFTPOS – electronic funds transfer at point of
sale
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Capturing and processing data
VDU- Video display Unit (monitor)
Displays texts and graphics
GUI- Graphical User Interface (deals with buttons,
textbox, graphic- based not text-based)
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Capturing and processing data
OMR- Optical Mark Recognition- involves a pre-
printed form marked with a pen
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Capturing and processing data
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Capturing and processing data
OCR- Optical Character Recognition
(convert print into text)
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Capturing and processing data
POS- Point of Sale
EPOS- Electronic Point of Sale (place where retail
transaction is completed)
EFTPOS- Electronic Fund Transfer at Point of
Sale (Fund transfer based on the use of payment
cards)
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Storage Devices
hold data in the machine in a sensible
form until needed for further processing
Tape Disks
storage Hard disk
Floppy disks
Zip disk
DATA
STORAGE
CD / DVD
Memory sticks
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Output Devices
VDU
PRINTERS
Factors to consider when choosing output medium
Is hard copy required?
Quality required
Volume of production
Speed of output
Suitability of output medium
Cost
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Management Information Systems
Collection of hardware and software
to store and process data and provide
information on screen and print outs
to management.
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Management Information Systems
PC PC
Departmental IS Unix
Enterprise
Server
Enterprise-Wide IS Hub
PC
Inter-Organizational IS Serial Terminals
In-house operations
Mux Thin
Client
Not confined to accounting Thin
information Client
Includes DIALUP/T1/T3/ISDN/FRAME RELAY
DIALUP/T1/T3/ISDN/FRAME RELAY
Operations
Mux
Thin Client
PC
Mux
Thin Client
Appliance PC
Accounting Appliance Appliance
Unix Server
Enterprise Store 3
Finance Server
On-line Multi-station Store
Appliance
Server
Store 3
Store Location 1
On-line Multi-station Store
Marketing Online Telenet System using the Internet
Store Location 2
Human resources
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Importance of Planned MIS
• MIS distributes useful information to managers for them
to do their work properly.
• Bad information = bad decisions or no decisions.
MIS must be planned so that:
• Information is communicated timely.
• All relevant information is given to the appropriate staff
that needs it.
• There is reference available in the event of staff changes
(i.e. the staff that left do not take away important
information that is only kept in his/her head).
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end of lecture
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The Role of Information Technology
REVIEW
QUESTIONS
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Review Questions
Printers which print a whole page at a time
are known as:
A Bubble jet printers
B Inkjet printers
C Scanners
D Laser Printers
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Review Questions
Which of the following is an output device?
A Screen
B Keyboard
C CPU
D Disk
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Review Questions
A method of input which involves a machine
that is able to read characters by using lasers
to detect the shape of those characters is
known as:
A MICR
B OCR
C OMR
D CPU
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Review Questions
Which of the following factors may affect the choice
of computer output medium?
(i) Whether a hard copy of the output is required
(ii) Whether the output requires further computer
processing
(iii) Whether a large volume of output is to be used
for reference purposes
A (i) and (ii) only
B (i) and (iii) only
C (ii) and (iii) only
D All three factors
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Review Questions
Data input has three stages. One of these is
the origination of data. Select from the
choices below the TWO which correctly
describe the other two stages.
A Translation of data
B Transcription of data
C Inputting of data
D Formatting of data
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Review Questions
Which of the following choices does the
following describe?
“A physically small external storage device
usually connected via a USB port.”
A DVD
B CD-ROM
C Memory stick
D Zip Disk
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thank you!
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