Types of Information Used in Business

Information used in business can be either systematic or non-systematic. Our discussion is generally limited to information that flows through a formal system, but it is important to keep in mind the fact that a great deal of information reaches the manager from sources outside the formal system. Newspaper and other news media, conversations, and even a manager’s perception of a colleague’s facial expressions are important sources of information. Many managers give more-attention to such sources than to the formal reports.

Information can be external or Internal. Much information that is relevant to the manager flows into the organization form the outside environment.… Read the rest

File Organization Techniques

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:-

  1. A character is any simple number, alphabet or special symbol.
  2. A data record consists of a group of related data fields(e. g. Employee’s sequential record, customer record, etc.)
  3. 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)
  4. A data file is a compilation of related data records maintained in some prearranged order.
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Introduction to File Organization

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.… Read the rest

Management Information System Growth Stages

It is pertinent to realize 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 computerization are gradually realized by most of the people in an organisation. This realization 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 computerization increases, a need is realized for cost-benefit analysis.… Read the rest

Cost Accounting Information System

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. It is the key to management’s assessment of the company’s efforts to achieve profit. Since it is so important, the CAIS must be carefully designed and properly maintained.

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:

  1. External financial statements,
  2. Planning and controlling activities or processes,
  3. Short term strategic decisions and
  4. 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.… Read the rest

Conversion/Installation Modes of Information Systems

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.… Read the rest