Essay Questions

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Chapter 1

Study Guide

Essay Questions

This activity contains 3 questions.

A successful accounting information system must provide information for management decision making. In that management’s decisions evolve around an organization’s strategy, the accounting information system should be designed to support the organization’s strategy. Describe the two basic strategies suggested by Michael Porter and identify an organization that you believe follows each strategy. Be sure to describe why you believe that the organization follows the strategy you suggest.

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In addition to supporting a basic strategy as discussed in question 1, each organization also chooses strategic positions. Define and discuss the three strategic positions outlined in the chapter. Give an example of each strategic position. Consider if any of your examples use more than one strategic position.

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Within the value chain of an organization there are five primary activities and four support activities. Describe how an accounting information system fits into the value chain of an organization. Where does it add value?

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