The basic technology of the data organization is based on a hierarchy. Data must be approached on an organized basis, if it is to be useful, in data processing, the hierarchy of data is described below:-
- A character is any simple number, alphabet or special symbol.
- A data record consists of a group of related data fields(e. g. Employee’s sequential record, customer record, etc.)
- A data field is an area that can hold one organization more characters that, together represents a specific data element(e. g. The name field, the quantity filed)
- A data file is a compilation of related data records maintained in some prearranged order.
- A database usually consists of several related organization integrated data files.
A file consists of a number of records. Each record is made up of a number of fields and each field consists of a number of characters. In order to produce useful information by means of computerized data processing, it is very necessary to organize data in systematic way.…
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As in our daily life, huge amount of data has to be collected and processed, so it is very difficult to handle it. But this can be handled fast and easily by using files. Files are the mega byte data structure used in information processing. Actually, a file itself is a bunch of bytes stored on some storage devices like magnetic disk, magnetic drum and magnetic tape etc. A file is a collection of records. Each record is made up of fields. The various fields consists of groups of characters, say the decimal digits 0 through 9 and alphabet A through Z. Group of fields are combined to form a logical record. This logical record contains all the data of interest about some entity.
Different application requires a variety of record types and file structure; one basic distinction is between fixed and variable length records. A fixed length record has all the field sizes and a number of fields fixed or known in advance whereas in the variable length record type the number of fields is not specified in advance.…
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It is pertinent to realise the importance of growth of MIS in stages in order to encounter increasing complexity of business processes and changing scenario of management. MIS development evolves from EDP systems. The EDP systems have rudimentary technology to handle clerical and supervisory operations in an organisation. This is initiation stage. The advantages of computerisation are gradually realised by most of the people in an organisation. This realisation leads to proliferation of computer, networking technologies and computer based system applications within an organisation. This is contagious stage. Next stage is typified by planning and control. As demand for computerisation increases, a need is realised for cost-benefit analysis. This is imperative to plan for future MIS in a cost effective manner.
Next stage of MIS development is integration of subsystems. This comes with realisation of interdependence of inflow of data from various sources for valid information. Management plans to leverage existing subsystems to a unified system. Objective of a unified system is to obliterate data redundancy and facilitate communication of information amongst various departments.…
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Cost Accounting Information System (CAIS) is an accounting information system which determines the costs of products manufactured or services provided and record these costs in the accounting records.
Functions of Cost Accounting Information System (CAIS)
Generally the purposes or functions of cost accounting information system fall into four categories. These include providing information for:
- External financial statements,
- Planning and controlling activities or processes,
- Short term strategic decisions and
- Long term strategic decisions.
These four functions relate to different audiences, emphasize different types of information, require different reporting intervals and involve different types of decisions.
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- Input: The input devices commonly associated with CAIS include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come “Web-enabled” to allow devices to connect to the World Wide Web.
- Process: Basic processing is achieved through computer systems ranging from individual personal computers to large-scale enterprise servers.
Conversion is the process of changing from the old system to the new one. It must be properly planned and executed. Four methods are common in use. They are: parallel systems, direct conversion, pilot system and systems phase-in. Each method should be considered in the light of the opportunities that it offers and problems that it may create.
However, it may be possible that sometimes, we may be forced to apply one method over others, even though other methods may be more beneficial. In general, systems conversion should be accomplished in shortest possible time. Long conversion periods create problems for all persons involved including both analysts and users.
The most secure method of converting from an old to new system is to run both systems in parallel. Under this approach, users continue to operate the old system in the usual manner but they also start using the new system. This method is the safest one because it ensures that in case of any problems in using the new system, the organisation can still fall back to the old system without loss of time and money.…
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Since cost plays quite an important role in deciding the new system, it must be identified and estimated properly. Costs vary by type and consist of various distinct elements. Benefits are also of different type and can be grouped on the basis of advantages they provide to the management. The benefits of a project include four types:
- Cost-savings benefits
- Cost-avoidance benefits
- Improved-service-level benefits
- Improved-information benefits
Cost-savings benefits lead to reduction in administrative and operational costs. A reduction in the size of the clerical staff used in the support of an administrative activity is an example of a cost-saving benefit.
Cost-avoidance benefits are those, which eliminate future administrating and operational costs. No need to hire additional staff in future to handle an administrative activity is an example of a cost-avoidance benefit.
Improved-service-level benefits are those where the performance of a system is improved by a new computer-based method.
Improved-information-benefit is where computer based methods lead to better information for decision-making. For example, a system that reports the most-improved fifty customers as measured by an increase in sales is an improved-information.…
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