AIS Exam Study Guide With 100%
Correct Answers
Chapter 1 - CORRECT ANSWER✔✔AIS: An Overview
Information - CORRECT ANSWER✔✔Different from data. It is data that have been organized and
processed to provide meaning to a user.
Data - CORRECT ANSWER✔✔Facts that are collected, recorded, stored, and processed by an
information system. The raw material and building blocks of information.
System - CORRECT ANSWER✔✔A set of interrelated components that interact to achieve a goal.
Value of Information - CORRECT ANSWER✔✔Value of Information = Benefits - Costs.
(cost benefit analysis)
4 Criteria of good information: - CORRECT ANSWER✔✔1. Relevance (reduces the uncertainty by
helping predict or confirm)
2. Timeliness (received in time to affect the decision)
3. Reliability (dependable and free from error or bias)
4. Completeness (doesn't leave out anything important)
AICPA (Accounting Information CPA) - CORRECT ANSWER✔✔Certification for Information
Technology Professionals CITP: Must be a CPA to have this designation
, Value Chain - CORRECT ANSWER✔✔A series of activities performed which provides value.
Primary and support activities (Line and staff)
Primary:
Inbound logistics
Operations
Outbound logistics
Marketing/sales
Services
Support:
Firm infrastructure -accountants, lawyers, administration, AIS.
Human resources
Technology
Purchasing
Types of Decisions: - CORRECT ANSWER✔✔1. Structure decisions -repetitive and routine, can be
delegated to lower-level employees. (day to day specific tasks)
2. Semi-structured decisions -have incomplete rules and require some subjectivity. (using
resources to accomplish organizational objectives e.g. budgeting)
3. Unstructured decisions -Nonrecurring and non-routine. Require much subjectivity. (where the
objectives and policies are set)
Higher up = less structured and more strategic planning.
Michael Porter - CORRECT ANSWER✔✔Father of the value chain
Correct Answers
Chapter 1 - CORRECT ANSWER✔✔AIS: An Overview
Information - CORRECT ANSWER✔✔Different from data. It is data that have been organized and
processed to provide meaning to a user.
Data - CORRECT ANSWER✔✔Facts that are collected, recorded, stored, and processed by an
information system. The raw material and building blocks of information.
System - CORRECT ANSWER✔✔A set of interrelated components that interact to achieve a goal.
Value of Information - CORRECT ANSWER✔✔Value of Information = Benefits - Costs.
(cost benefit analysis)
4 Criteria of good information: - CORRECT ANSWER✔✔1. Relevance (reduces the uncertainty by
helping predict or confirm)
2. Timeliness (received in time to affect the decision)
3. Reliability (dependable and free from error or bias)
4. Completeness (doesn't leave out anything important)
AICPA (Accounting Information CPA) - CORRECT ANSWER✔✔Certification for Information
Technology Professionals CITP: Must be a CPA to have this designation
, Value Chain - CORRECT ANSWER✔✔A series of activities performed which provides value.
Primary and support activities (Line and staff)
Primary:
Inbound logistics
Operations
Outbound logistics
Marketing/sales
Services
Support:
Firm infrastructure -accountants, lawyers, administration, AIS.
Human resources
Technology
Purchasing
Types of Decisions: - CORRECT ANSWER✔✔1. Structure decisions -repetitive and routine, can be
delegated to lower-level employees. (day to day specific tasks)
2. Semi-structured decisions -have incomplete rules and require some subjectivity. (using
resources to accomplish organizational objectives e.g. budgeting)
3. Unstructured decisions -Nonrecurring and non-routine. Require much subjectivity. (where the
objectives and policies are set)
Higher up = less structured and more strategic planning.
Michael Porter - CORRECT ANSWER✔✔Father of the value chain
