Question

What are some of the consequences to a company that makes a poor decision in selecting a new AIS?

Answer 1

Answer-

AIS stands for Accounting Information System. AIS is a computer based system which helps the company to record, collect, store and summarise financial data to easily analyse. This helps decision makers to take decisions that are important for the company.

A company uses effective Accounting Information System for the reliability and relevan use of information of all the accounts.

1. Consequences to a company that makes a poor decisions in a selecting a new AIS:-

• COST
• TRAINING
• DATA

Explained :-

• Cost: The cost of the new Accounting Information System must be economical therefore the company may be beneficial for the new AIS. Otherwise, Company can also go for the ineffective goal and cost. Thats why company should take care of costs so, the company will not affect by it.
• Training: By adopting new AIS, company must held new training for the upgradation of skills of the employees. Otherwise this will create consequences in the company, as company has to train again for the new Accounting Information system.
• Data: If the AIS requires data in specific format, it will waste time in company. And this will be one of the reason which is the consequences of company.

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CONCLUSION-

All of the above are the reasons by which company's can lead to poor decision making while selecting a new AIS. Three reasons which leads to poor decision and create consequences.