Impact of The Accounting Information System

Running head: ACCOUNTING BEHAVIOR AND CONTROL
ACCOUNTING BEHAVIOR AND CONTROL
Name of the Student
Name of the University
Author Note

1ACCOUNTING BEHAVIOR AND CONTROL
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................4
Answer to Question 3.................................................................................................................6
References..................................................................................................................................8

2ACCOUNTING BEHAVIOR AND CONTROL
Answer to Question 1
1. The strategic position that can be seen from the case study is that both the organizations
i.e. Poppy and Iris sell sewing machines, which do have same features in their products.
As the price of machineries which are sold in the market, is almost same, but there are
some differences in their operating and maintaining cost1. The cost of operating and
maintenance cost has been estimated of $400 for Poppy and Iris do have a higher
operating and maintenance cost which amounts to $650. The strategy that the
organization does implement is that it does have the Poppy does focus on the product
with have been emphases on the lower operating and maintenance cost which is. On the
other hand, in case of Iris, it can be seen that the strategic implementation that has been
implemented is that they do have a better service reputation of the product that they sell
and it has a fast delivery time that the competitor2. The organizations do want to maintain
a lower amount of cost and does have differentiation at the same amount of time.
2. As per the statement, which Adam has stated is, “I think that Iris offers more value than
Poppy”. The possible sources for which Adam approached to buy Iris is that, the
organization does have a service reputation and there is much faster delivery compared to
the Poppy3. From the case study, Adam has chosen to buy the product of Iris, though they
do have the high operating and maintenance cost which is $ 250 more than the Poppy, as
the Iris do have a better serviced reputation of the product and does have a faster delivery
1Puspitawati, Lilis, and Azhar Susanto. "The Influence of Business Strategy Through the Management
Accounting Information System to the Quality of Management Accounting Information-Evidence in Indonesia."
In International Conference on Business, Economic, Social Science and Humanities (ICOBEST 2018). Atlantis
Press, 2018.
2Mirzaey, Mehdi, Mohammad Behdad Jamshidi, and Yousef Hojatpour. "Applications of artificial neural
networks in information system of management accounting." International Journal of Mechatronics, Electrical
and Computer Technology 7 (2017): 3523-3530.
3Uyar, Ali, Ali Haydar Gungormus, and Cemil Kuzey. "Impact of the accounting information system on
corporate governance: Evidence from Turkish non-listed companies." Australasian Accounting, Business and
Finance Journal 11, no. 1 (2017): 9-27.

3ACCOUNTING BEHAVIOR AND CONTROL
time4. Though the costs are more, the consumers will get attracted to it because of the
goodwill and do have a faster delivery. There are several factors that consumers like
Adam do focuses on as it is seen that the Iris product that are purchased does deliver
earlier than one week if compared to Poppy.
3. With the help of the management accounting system, various techniques, which are
implemented do help the organization to collect, process, manage, and report all the
activities in retrieving the financial data in assisting the managers5. It also helps in
assisting the managers of organization that help in the decision-making. In case of Poppy,
for the betterment of sales, the management does decide that there should be
improvement on the delivery performance that will be through the improvement of the
internal processes. Furthermore, the management will do this with the help of improving
the internal process in the management. This implication, which has been done by the
Poppy, is because of giving a strong competition against the competitor’s like Iris that do
have a good reputation within the consumers and do have a faster delivery time.
With the help of implications for the management accounting information system,
it does help in the forecasting, financial ratios, forecasts, variance analysis and budgeting
decisions. It also helps in the profitability and business expansion that further benefits in
the effective business decision. There is involvement of managers in the different levels
of management, that involves different amount of time and the functions does include
planning, organizing, leading, and controlling. If the managers do have a perfect leading,
then the amount of planning, controlling and organizing, it will decrease the hierarchy
management. In running an organization, it does require some management ability to take
a good business decisions as Poppy is doing, so that it can able to beat the competitors
4Napitupulu, Ilham Hidayah. "Organizational culture in management accounting information system: Survey on
state-owned enterprises (SOEs) Indonesia." Global Business Review 19, no. 3 (2018): 556-571.
5Erwin, Keulana. "Relationship Management Accounting and development of information technology." In IOP
Conference Series: Materials Science and Engineering, vol. 648, no. 1, p. 012033. IOP Publishing, 2019.