AIS Accountant’s Perspective

The Information system: An Accountant’s Perspective

R.Q.1

I have divided the question into two sub-questions, the first one: What are the four levels of activity in pyramid representing business organization??

1- Operations personnel which consist of product oriented work of organization as manufacturing, sales and distributions.

(p.3 lines 9-11)

2- Operations management which is directly responsible for controlling day to day operations. (p.3 Line13 )

3- Middle management which is accountable for short term planning and coordination of activities necessary to accomplish organizational objectives.

(P.3 lines 14-15 )

4- Top management which is responsible for longer term planning and setting organizational objectives.

(P.3 lines 15-16)

The second sub-question is: Distinguish between horizontal and vertical flow of information??

Horizontal flow supports operations level tasks with highly detailed information about many business transactions affecting the firm.

These transactions include information on events as sale, use of labor and material in production and internal transfer of resources from one department to another.

(P.3 line 20 – P.4 line 3)

Vertical flow distributes summarized information about operations and other activities upward to managers at all levels to support planning and control functions .

It can be downward from senior managers to junior managers in form of instructions, quotas and budgets.

( P.4 lines 3-7)

Thank you