AIS Chapter 11 Key terms for Accounting Info Systems chapter 11

Term Definition
Activity-based costing system Helps managers describe processes, identify cost drivers of each process, and then determine the unit costs of products created in each process
Business process management (BPM) software Automate the core processes that normally occur in an HR office
Business process reengineering (BPR) Redesigning business processes that are no longer effective or efficient. It is a continuous process that requires analysis of an existing process to find areas that need improvement
Change management consultants Facilitate the complex process of BPR and overcome potential negative reactions
Cost accounting subsystems Provides important control information and varies with the size of the company and the type of product produced
Electronic funds transfer (EFT) Also called electronic payment. It is a cash management technique that eliminates paper documents
Enterprise asset management (EAM) systems Automate the management of a broad spectrum of assets
Financial planning models Help financial managers select an optimum strategy for acquiring and investing financial resources
Financing process Describes how a company acquires and uses such financial resources as cash, other liquid assets, and investments
Fixed asset management (FAM) Manages the purchase, maintenance, valuation, and disposal of fixed assets
Human Resource (HR) Management Responsible for hiring or laying off employees
Job costing information system Keeps track of the specific costs or raw materials, labor, and overhead associated with each product or group of products, called a "job"
Just-in-time (JIT) inventory systems The organization produces goods to fill an order rather than to fill inventory
Lean accounting The system of accounting that uses new performance measures to compliment lean manufacturing and further improve the business
Lean manufacturing Involves making the commitment to eliminate waste throughout the organization
Lock-box systems AN effective cash management tool that reduces the float period during which checks clear the bank
Non-value-added waste The Toyota Production System focuses on reducing this in order to improve its business.
Payroll processing information systems Pay employees for their work, maintain employee earnings records, comply with various government tax and reporting requirements, report on various deduction categories, and interact with other personnel functions
Process costing information systems Used by manufacturers of homogeneous products that are produced on a regular and continuous basis
Production process Sometimes called the conversion process. Begins with a request for raw materials and ends with the transfer of finished goods to warehouses
Third-party billing A special accounting need of many health care organizations. Instead of billing customers directly, they go through a third party
Time and billing information systems Track hours and costs associated with each job. Similar to job order costing systems
Value stream management Replaces traditional departments to measure and valuate results and create lean accounting
Vertical markets Markets or industries that are distinct in terms of the services they provide or the goods they produce