Question

How can an AIS become part of the firm's value chain and add value to the business?

A) Enhancing decision-making processes by providing real-time financial data and analysis
B) Streamlining employee training programs
C) Improving customer relations through direct marketing strategies
D) Enhancing physical product design and development stages

Answer 1

An Accounting Information System (AIS) can become part of a firm's value chain and add value to the business by enhancing decision-making processes, streamlining employee training programs, improving customer relations, and enhancing product design and development.

Step-by-step explanation:

An Accounting Information System (AIS) can become part of a firm's value chain and add value to the business through various ways:

1. Enhancing decision-making processes: An AIS can provide real-time financial data and analysis, enabling managers to make informed and timely decisions. For example, by generating financial reports and performance metrics, an AIS can help identify areas of improvement or inefficiencies in the business.
2. Streamlining employee training programs: An AIS can automate and standardize employee training programs, providing consistent and up-to-date information. This can enhance employee productivity and reduce training costs.
3. Improving customer relations: Through direct marketing strategies, an AIS can help firms understand customer preferences and behavior, allowing them to tailor their products or services to meet customer needs. This can lead to increased customer satisfaction and loyalty.
4. Enhancing product design and development: An AIS can support the design and development stages of a product by providing relevant data and analysis. For example, it can assist in evaluating the feasibility and profitability of different product designs, helping firms make informed decisions.