8/24/24
Accountants perspective:
(2) ORGANIZATIONAL STRUCTURE
•a system that outlines how certain activities are directed in order to achieve the goals of an organization
•these activities can include rules, roles and responsibilities
-how do we organize, what is its structure
-do we need pay/hire outsiders to do something that someone can already do inside the organization?
FILGEPS -are companies registered that can offer services to the government, ongoing for only weeks but has a logo already.
How structure being made/functions:
An organizational structure is a system that outlines a business
- goal to investigate
to allocate:
•Responsibility - obligation to do the task
•Authority - power or ability to do the task
•Accountability - the effect of the responsibility(result)
Physical AIS (tangible, can touch, feel etc.)
•because it is composed of technologies of various types and configurations, as well as people and tasks from across the
organization, thus there is a need for segmentation.
•Segmentation - to divide the organization into parts, or segments, which are definable, accessible, actionable and profitable.
-the obligation play a vital role, these roles are defined, profitable, and function uniquely.
Functional Segmentation - business organization considers the resources that they need manage within the business.
Four Resources that a business must manage:
1. MATERIAL - no material, no process
A. Material Management - determine and plan what is needed in stock, communicate information and requirements, create
inventory levels for each type of item
i. In-charge of purchasing-they identify what to buy, are authorized and accountable for the material if it has damage
ii. Receiving Material- to check and balance the material bought
iii. Managing the store- warehouse if they went to proper the location, do they follow the right inventory process, or in the store if
they sell the products right
B. Production - combining inputs to create output
i. Manufacturing - process
ii. Support - what you need for production
1. Production planning(what to follow)
2. Quality control(convert raw to finish products)
3. Maintenance(of good production)
C. Marketing - penetrate the market
i. Sales - direct contact to people
ii. Promotion - package
iii Advertising - ads, indirect
iv. Market Research - what’s the target market
1. Generate revenue
2. Understand the behavior, potential customers and how to reach them
D. Distribution - logistics of products and raw materials
i. Warehousing - inventory
ii. Shipping - destination of product, there must be someone accountable under distribution for damages
2.LABOR - manpower
A. Recruiting - HR, looking for possible employees
B. Training - for employees to know policies
C. Benefits - credits, wages, salaries / non-monetary benefit
D. Counseling
i. Supplies the organization with personnel and takes care of their well being
ii. Ensure they’re fit for the role they are chosen for(if they caused dissatisfied customer they come here)
3.FINANCIAL CAPITAL - money and credit that produce goods and services
A. Portfolio management - records, if they’re updated or tracked okay
B. Treasury - responsible for funds and the reserves in case for calamities
C. Credit - credit worthiness of clients, if they can pay for shares
D. Cash disbursement - going out, outflow of business
E. Cash receipts - inflow of business
i. Concentrates on forecasting and budgeting of business revenues
ii. Most business plans concentrate on this area because they need loans for investments
4.INFORMATION
Under accounting:
A. Inventory control - how to maintain goods
B. Cost accounting - expenses on products, cash disbursement
C. Pay roll - salary and benefits of employees
D. Accounts payable - our debt
E. Accounts receivable - clients debt
F. Billing - terms in utilities, if paid in the right time
G. Fixed asset - long term assets, when do we recognize their depreciation
H. General ledger - information reliability requires accounting independence, bookkeeping, journal entries
i. Manages the financial resource of the firm by
-capturing and recording transaction
-distributes transaction information to operations
personnel
ii. Value of information is determined by its reliability
-unreliable information has NO VALUE
iii. Information reliability requires accounting independence
-must be separate and independent of the functional areas maintaining
resources
-does not actively participate
-requires vital information be supplied by an independent source
TECHNOLOGY - important because it is fast, maintain role to grow and improve, vital for accountants, most vital task for external and
internal data processing
Under technology:
A. Data processing
1.Distributed data processing - Recognizing the computer serviceservicer function into small information processing units that are
distribute to end users
and placed under their control, users process transactions locally with each user segment and an IT needs to support their
operations. Users function independently and tend not to share data and information
•Disadvantages; loss of control, mismanagement, hardware software incompatibility, redundant task and data problems
2.Centralized data processing - All data processing is performed by one or more large computers housed at a central site that serves
users throughout the organization. Most organization employ a combination of
both types.
B. System Development and System Maintenance
1. System Development - Process use to acquire information system
2. System Maintenance - 80-90% of systems total cost incurred because of maintenance activities, trivial or significant
3. Custom software - Individual specification, systems develop life cycle(software development process), requires in-house team of
qualified individuals and cost more expensive, custom systems more expensive than commercial packages, Enterprise Resource
Planning (ERP) a system assembled of prefabricated software components
4. Commercial software - Pre-coded software, readily available, can use on the spot available for general accounting and industry
specific application, "turnkey systems" can be implemented by the user with little
or no modification
C. Database Administration - people that supervise to organize company with shares and ensure security and integrity
D. Network Administration - middle man, one data to another, responsible for effective functioning of hardware and software,
"network" collection of computers and communication devices to access/share data, applications, information resources, "IT
Outsourcing" sells IT resources and leases back IT services
Cloud Computation Data - host its services over the internet
Software as a Service (SaaS) - users access software applications over the internet without needing to install, low expenses.(gmail,
microsoft office)
Infrastructure as a Service (IaaS) - buildings offer virtualized computing resources over the internet/machine, website, manage their
IT infrastructure without owning physical hardware.(amazon web services(AWS), microsoft azure)
Platform as a Service (PaaS) - how to build or provide a platform that allows developers to build, deploy and manage applications
without worrying about underlying infrastructure such as servers or storag.(online class, google app engine, heroku)
