Accounting Information Systems: Essential Concepts and Applications Fourth Edition by Wilkinson, Cerullo, Raval, and Wong-On-Wing Module 1: Decision Making, Information Needs, and Introduction to Information Processing Support Systems Slides Authored by Somnath Bhattacharya, Ph.D. Florida Atlantic University

Steps in a Decision Process Recognize and define the problem Determine alternative courses of action Evaluate the alternatives Select the best alternative Carry out the decision choice Follow up the decision results Figure M1-1

Types of Decisions Unstructured Structured or Non-programmed

Managerial Functions and Decision Making Planning Strategic Tactical Control Operational Management

Levels of Managerial Decision making Strategic planning Tactical planning Operational control Operations and related transaction processing Figure M1-2

Information Qualities Relevance Accuracy Timeliness Conciseness Clarity Quantifiability Consistency

Specific Types of Information Needs Financial Non-financial Operational Customer Stakeholder General firm External

Levels of Decision Making Support Provided by Support Systems System processes data System models data System suggests decision choice System makes decision Outputs System stores data Input data Processed information Support level 3 5 1 2 4 Figure M1-5

Types of Managerial Decision Making Support Systems Types of processing systems that support decision making Figure M1-7

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