Accounting Information Systems and Business Cycles
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What Is a System?
A system is two or more interacting parts (subsystems) working together to achieve one or more goals.
Example:
A company is a system. It includes the Sales department, Accounting department, and HR department, all working together to earn profit.
Goal Conflict
Goal conflict occurs when one subsystem’s goal hurts the overall organization.
Example:
Sales offers heavy discounts to increase sales numbers, but profits fall.
Goal Congruence
Goal congruence occurs when subsystem goals align with company goals.
Example:
Sales increases revenue while maintaining profit margins.
Integration
Integration eliminates duplicate recording, storage, and reporting.
Example:
Customer data is entered once and shared across departments instead of being entered... Continue reading "Accounting Information Systems and Business Cycles" »