respond in 100 words to Robert Hammer Explain how AIS affects firm value. Let m

respond in 100 words to
Robert Hammer
Explain how AIS affects firm value.
Let me start with defining Accounting Information System and what is included in assessing a firm’s value so we can better understand how that AIS affects the value of a firm. An Accounting Information System is a system that records, processes, summarizes, reports, and communicates the results of transactions to provide financial and non-financial information to facilitate decision-making within an organization (Richardson, 2021). The firm’s value can be broken down into several processes with five primary activities backed by four support activities. Our textbook tells us the five primary activities include: Inbound Logistics, Operations, Outbound Logistics, Marketing and sales activities, and Service activities (Richardson, 2021). The supporting activities include the Firm infrastructure, Human Resource Management, Technology, and Procurement (Richardson, 2021).
A few decades ago, AIS did very little to add value to an organization and used as regular bookkeeping tools. Early systems were relatively limited recorders and then reporters of data, AIS are now powerful systems that integrate several functions within a business (Hunt, 2017). With the advancements in information technology, AIS can add value to a firm by making the primary activities more efficient, such as assisting with inbound and outbound logistics by finding transportation or warehouse cost savings (Richardson, 2021). Firms can increase their significance by minimizing costs and maximizing profits. A recent article tells us that AIS also provides information regarding the relationship between cost, volume, and profit required to determine the amount of interdependence and interaction between them (Ganyam, 2019).
As I mentioned in defining the AIS, the system can also assist managers and executives in the decision-making process. The AIS helps produce internal and external financial reports efficiently that help decision-makers get timely access to the processed information (Richardson, 2021). We should be able to understand the value of timely information when it comes to important decisions, especially the decisions that can affect many people and a large number of dollars.