Case Scott and Susan
Scott & Susan require a well-designed AIS to provide the information they need to effectively plan, manage, and control their business. S&S's AIS must be able to process data about sales and cash receipts, purchasing and paying for merchandise and services, payroll and tax-related transactions, and acquiring and paying for fixed assets. The company's AIS must also provide the information needed to prepare financial statements.
Fortunately, there are many computer-based accounting packeds available for the retail industry. As they begin looking at various popular software packages, however, Scott and Susan quickly learn that considerable accounting knowledge is required to choose the one best fit their business. Because neither has an accounting background, Scott and Susan decide that their next task will be to hire an accountant.
Case Scott and Susan
Scott & Susan require a well-designed AIS to provide the information they need to effectively plan, manage, and control their business. S&S's AIS must be able to process data about sales and cash receipts, purchasing and paying for merchandise and services, payroll and tax-related transactions, and acquiring and paying for fixed assets. The company's AIS must also provide the information needed to prepare financial statements.
Fortunately, there are many computer-based accounting packeds available for the retail industry. As they begin looking at various popular software packages, however, Scott and Susan quickly learn that considerable accounting knowledge is required to choose the one best fit their business. Because neither has an accounting background, Scott and Susan decide that their next task will be to hire an accountant.
Question :
1. Use value-chain concept for S & S's. Explain how to perform activities of Primary and Support Activities (supporting activities).
2. One interesting property of digital asset is that they can be reproduced and distributed via the Internet at very little cost. What are some of the implications of having a product with a marginal cost close to zero