Accounting & Info Systems: Transforming Data for Decision Making, Summaries of Accounting

Download Accounting & Info Systems: Transforming Data for Decision Making and more Summaries Accounting in PDF only on Docsity! ABSTRACT In this study, we introduce you to the subject of accounting information systems (AIS), describe the importance of AIS to your future success, and layout some important terms and concepts that we will use throughout the text. We begin by presenting a view of the practice of accounting. You will see that accountants today are shifting their focus from being business accountants and auditors to being information management and business measurement professionals providing value-added services to their organizations and clients. This view, rooted in changes in information technology and changes in a volatile business environment, reflects the practice of accounting for those on the leading edge of their profession. Next, we define and explain AIS and its relationship to the organization. Then, we describe the qualities that information must possess to drive the organization and enable the performance of key management functions. Finally, we summarize the role of the accountant in today's business environment. Throughout the text, we will present three themes to connect our discussions to topics that are currently of great interest to accountants. These themes are ente1prise systems and enterprise resource planning (ERP) systems-such as those sold by SAP®, Orade®, Sage™, and Microsoft®; e-business, including retail e-businesses such as Amawn.com®, the online segments of traditional retailers, such as Walmartcom, and wholesale electronic market- places such as ECEurope.com and EC21.com; and internal control-those business practices that keep an organization out of trouble and heading toward achieving its objectives. We introduced these in the Preface and discuss them further later in this chapter. Introduction At the start of this chapter, we introduced the impact of technology and how it will affect your role as an accountant, but the impact extends well beyond accounting. The Occupational Outlook Handbook suggests that technology improves information available for decision making-this means that all decision makers within an organization benefit from accounting technology-this is not limited to accountants. Mohammed Al-Omiri a, Colin Drury b,? a Umm Al-Qura University, Saudi Arabia b Department of Accountancy, University of Huddersfield, UK (2012) Introduction to Accounting Information System For example, sales managers can make better decisions because the sales and collections information from the computerized accounting system is timelier. The ability to automate controls means that the data should be more reliable, which is another benefit for the entire organization. Accountants with technology skills are using computers to reduce the mundane part of their work, which allows them to be more efficient in their work. This efficiency means these accountants have time to do more interesting work and at the same time be more valuable to their employers. Now that you understand the importance of technology within accounting, let's begin exploring AlS. This chapter provides you with some basics that are used throughout the text. Our introduction to AIS continues with some background material and definitions. We define and describe AIS, depict it as a major part of business processes and of any organization, and describe the critical functions that AIS perform in an organization. Some of the terms in this chapter may not be familiar to you. Don't let that worry you at this point. We will define and illustrate these terms later in the book. The Textbook's Three Themes Before digging into the material, you should understand the importance of the three themes in this book and how they will be included in the discussions throughout this text. The three themes--enterprise systems, e-business, and internal control-were introduced and defined in the Preface. Enterprise systems integrate the business process and information from all of an organization's functional areas, such as marketing and sales, cash receipts, purchasing, cash disbursements, human resources, production and logistics, and business reporting (including financial reporting). Enterprise resource planning (ERP) systems are software packages that can be used for the core systems necessary to support enterprise systems. It is critical that accountants understand these systems because they will be members of the teams that will install and operate systems in their organizations. To install an enterprise system, the business processes of an organization must be understood and documented. If necessary, the business processes must be changed and then mapped to the enterprise system. A major part of the installation project is configuring the enterprise system to tailor it to the business processes. As consultants, business process owners, system users, or auditors, we must understand these systems and be able to install, use, and audit them. Enterprise systems are described more fully in Chapter 2 and are discussed throughout the remainder of the book. E-business is the application of electronic networks (including the Internet) to undertake business processes between individuals and organizations. These processes include interaction between back-office (i.e., internal) processes, such as distribution, manufacturing, and accounting; and front-office (i.e., external) processes, such as those that connect an organization to its customers and suppliers. E-business has created entirely new ways of working within and across organizations. For example, organizations are buying and selling goods and services at virtual marketplaces, which changes how organizations identify customers and select vendors. It should change how they determine the costs of acquiring goods from a vendor and what price(s) they should charge their customers for their products. Obviously, accountants need to be aware of the opportunities and risks associated with this new way of doing business. E-business is explained more fully in Chapter 3 and discussed throughout the remainder of the book. Internal control is a process-effected by an entity's board of directors, management, and other personnel-designed to provide reasonable assurance regarding achieving objectives in the following categories: efficiency and effectiveness of operations, prepare to use the available technology and to participate in planning for and growing with the technology. Management accountants and internal auditors find themselves buying, using, and evaluating complex computer-based information systems. Financial accountants must be sure that their AIS can produce financial statements to comply with SOX Section 409. The management accountant must be sure that a new information system has the necessary features, such as controls and the ability to access data and to trace data from input to output. Also, these information systems must be protected from fraud and other abuses. How effectively you use technology to perform these functions will determine how well you can do your job, which may determine the very survival of your company in a competitive, international marketplace. Technology is also influencing public accounting firms. The business-consulting units of the Big Four public accounting firms have accounted for a significant percentage of the firms' business and were growing faster than the accounting, auditing, and tax portions of their businesses. The consulting units of three of these firms have been split off from the "accounting" portions of the firms (Ernst & Young Consulting was acquired by Capgemini™, KPMG Consulting became BearingPoint™, and the consulting division of PricewaterhouseCoopers was sold to IBM@). Still, the growth portion of the remaining "accounting" firms will remain in their value-added, business ~ advising lines. For example, a major line of business for these firms has been to assist their clients in complying with SOX Section 404. 5 You should not be surprised to find the need for strong technology skills continuing in these firms. The consulting firm also recruits personnel with accounting and technology skills. If you aspire to a career in public accounting, your success in the consulting segment of public practice will depend on your knowledge and experience in relatively technical areas that, at first glance, are far from the practice of accounting. Independent auditors are faced with deciding on the "reasonableness" of financial statements produced from data contained in the information system. As an auditor, you will be asked to execute your audit tasks and to provide additional "value-added" service to the client. You will, for example, provide your client with advice on improving operations and reducing risks. Successful public accounting firms provide cost-effective audits along with broader, high-quality service to the client. These conclusions were confirmed by the report of a project sponsored by the American Accounting Association, the American Institute of Certified Public Accountants, the Institute of Management Accountants, and the Big Five (there were five at the time) public accounting firms. Practitioners surveyed reported that accounting graduates would need to be able to provide services in the areas of financial analysis, financial planning, financial reporting, strategic consulting, and systems consulting. Historically, the accountant has performed an attest function to determine the reliability of financial information presented in printed financial statements. This role is expanding to include the following:  Nonfinancial information (e.g., accountants might help determine occupancy rates for hotels or apartment complexes)  Use of information technology to create or summarize information from databases  Information interpretation to determine the quality and relevance of information to be used for decision making (e.g., evaluating information for the assessment of risk) The Assurance Services Executive Committee of the American Institute of Certified Public Accountants (AlCPA) identifies, develops, and promotes nonaudit assurance services that can be offered by accountants. 7 These services include the following:  Risk assessment (CPA Risk Advisory Services)  Business performance measurement (CPA Performance View)  Information systems reliability (SysTrust, see Chapters 3 and 8)  Electronic commerce (WebTrust, see Chapter 8)  PrimePlus Services (Financial care of the elderly) Development of these services has been a joint effort between the AlCPA and the Canadian Institute of Chartered Accountants (CICA). In addition to the development of these assurance services, the AlCPA has, in cooperation with CPAs across the United States and other professional organizations, proposed a vision of the profession's future called the CPA Vision Project. 8 Three of the five core services proposed in the project involve information technology. They include "assurance and information integrity," "management consulting and performance measurement," and "technology services." Among the core competencies that will be required of those performing these services are "interpretation of converging information" (able to interpret and provide a broader context using financial and nonfinancial information) and "technology adept" (able to use and leverage technology in ways that add value to clients, customers, and employers). . Finally, the AlCPA has created a credential, the certified information technology \ professional (CITP), to recognize CPAs who can provide skilled advice on using IT to implement business strategy.9 Skills necessary to obtain this accreditation include (chapter coverage in this text is shown in parentheses) the following:  An understanding of project management (Chapter 17)  Familiarity with IT and business processes (IT throughout the text, business processes in Chapters 10 through 16)  Competence in technology (throughout the text) Components of the Study of AIS Figure 1.1 (pg. 8) depicts the elements central to our study of AlS. Many should be familiar to you, and many have been introduced earlier in this chapter. We will briefly discuss each element, with special emphasis on how the accountant is affected. Before beginning, you should understand two things. First, the study of AIS is our broad view, and the accounting information system itself is our narrow view. Second, you shouldn't assign any meaning to the placement of the elements in Figure 1.1. The figure just tells you that there are 10 elements.  Technology. Your ability to plan and manage business operations depends partly on your knowledge of the technology available. For instance, can we manage production without knowledge of robotics? It goes without saying that technological developments have a profound effect on information systems; enterprise systems, ERP systems, e-business, databases, and intelligent systems are but a few examples. Technology provides the foundation on which AIS and business operations rest, and knowledge of technology is critically important to your complete understanding of Accounting and auditing princip;es Communications the AlS discipline. Exhibit 1.1 describes the 10 most important teclmological challenges and opportunities facing CPAs in 2008. These technologies were selected by a group of CPAs and other professionals recognized as technology leaders. The AlCPA's Information Technology Center sponsored this group and published the results. The exhibit indicates where these technologies are discussed in this text.  Databases. Your other accounting courses have emphasized accounting as a reporting function. The full accounting cycle, however, includes data collection and storage, and these aspects must become part of your knowledge base. In addition, important to a complete understanding of AlS are the variety of databases, both private and public; the quantity and type of data available in these databases; and methods of retrieving those data. To perform analysis, to prepare information for management decision making, and to audit a firm's financial records, an accountant must be able to access and use data from public and private databases. Chapters 5 and 6 explore the design and use of an organization's own databases.  Reporting. To design reports generated by an information system, the accountant must know what outputs are required or are desirable. Often, the user will prepare a report on an ad hoc basis using powerful report-generating tools or a database query language (discussed in Chapters 5 and 6). These reports often support management decisions as well as fulfill certain reporting obligations. GAAP-based financial statements are but one example of reporting that will be considered in our study of AlS. been drumming this message into you? If not, you'll become acutely aware of its importance when you enter the job market. Unlike in other accounting courses, there are few right or wrong answers in the study of AlS. Throughout this course, you will be required to evaluate alternatives, to choose a solution, and to defend your choice. Technical knowledge won't be enough for the last task.  Accounting and auditing principles. To design and operate the accounting system, an accountant must know the proper accounting procedures and must understand the audits to which the accounting information will be subjected. As an illustration, suppose you were designing an AlS for the billing function at XYZ, Inc. Would you invoice a customer at the time the customer's purchase order was received, or would you wait until XYZ's shipping department notified you that the goods had been shipped? The answer is, it depends, and we must have knowledge of business operations and the related accounting process to properly synchronize the two. What Is an Accounting Information System? In this section, we suggest a definition for AIS (this is our narrow view of AlS) and discuss related terms to help you understand the subject matter of this textbook. Because these definitions establish a background for later study, you should read this section carefully. The section begins with a definition of a system and then we have discussion of it. The section concludes with an explanation of how the accountant interacts with the AlS and with the current business environment. Systems and Subsystems A system is a set of interdependent elements that together accomplish specific objectives. A system must have organization, interrelationships, integration, and central objectives. Figure 1.2(a) (pg. 12) depicts a system consisting of four interrelated parts that have come together, or integrated, as a single system, which we have named System 1.0. Each part of a system-in this case, parts 1.1, 1.2, 1.3, -is known as a subsystem. Within limits, any subsystem can be further divided into its component parts or subsystems. Figure 1.2(b) depicts subsystem 1.2 as a system consisting of three subsystems. Notice that we use the term system (versus subsystem) to describe the area of current interest. For example, in a typical university, the College of Business and the College of Engineering are subsystems of the university system, whereas the School/Department of Accountancy and the Marketing Department are subsystems of the College of Business system. In Figure 1.2, parts (a) and (b) depict the interrelationships (A through H) in a system; part (c) depicts the hierarchical organization structure inherent in any system. Again, picture System 1.0 as a university and System 1.2 as the College of Business. Interrelationship F might be a finance student being sent by the Finance Department (1.2.1) to the School/Department of Accountancy (1.2.2) for a minor in accounting. A system's central objectives depend on its type-natural, biological, or man-made and on the particular system. For example, the human circulatory system is a biological system (a subsystem of the human body) whose purpose is to carry blood containing oxygen and carbon dioxide to and from the organs and extremities of the body. Determining the purpose of man-made systems-such as governments, schools, and business organizations-is a matter we must discuss and understand. Disagreement over the basic functions of the government of the United States has always led to spirited debate among political parties. For example, is the U.S. government the "employer of last resort" and therefore responsible for providing jobs for every citizen? Even when we agree on what the objectives should be, we may disagree on how they should be attained. For example, we might all agree that the objective of a municipal school system is to (a) System: 1.0 Subsystems: 1.1, 1.2, 1.3, 1.4 Interrelationships: A, S, C, D, E (b) System: 1.2 Subsystems: 1.2.1, 1.2.2, 1.2.3 Interrelationships: F, G, H 1.0 I I I I I 1.1 1.2 1.3 1.4 , I I I 1.2.1 1.2.2 1.2.3 "educate the young citizens of the city." However, if you attend a meeting of a local school board, you probably won't discover consensus over how to meet that objective. Business organizations usually have more straightforward purposes that are normally related to the "bottom line." However, many businesses establish goals other than financial return to the owners. For example, a business might strive to improve the quality of life of its employees or to use its natural resources responsibly. Here is the bottom line: You must know a business organization's objectives to understand that business as a system and to understand the actions and interactions of that business's components or subsystems. This is a central theme of this study of AlS. The Information System (IS) An information system (IS) (or management information system [MIS]) is a manmade system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users. Figure 1.3 depicts the functional components of an IS. Imagine a simple IS used to maintain inventory balances for a shoe store. The inputs for NOTE: System outputs result in user actions. Some actions (Le., feedback) in turn become subsequent system inputs. such a system might be receipts of new shoes or sales of shoes; the processing might be to update (in storage) the inventory records for the particular shoe; and the output might be a listing of all the kinds and sizes of shoes and their respective recorded balances. That is, a simple IS is directed at the processing of business events. The IS facilitates these operational functions and supports management decision making by providing information that managers can use to plan and control the activities of the firm. The IS may have advanced elements, such as a database for storage, and can use decision models to present output information for decision making. For example, assume that, while entering data about shoe sales, you also enter data about who purchased the shoes, how they paid for the shoes, and why they decided to buy their shoes at your store. You might store those data and periodically print reports useful in making decisions about advertising effectiveness. Or you might decide, on the basis of analysis of the sales data, to engage in joint advertising campaigns with a credit card company whose cards are often used in the store. The Accounting Information System (AIS) The IS used in the shoe store might have components designed specifically for the organizational function being supported. For example, the IS in the shoe store supports inventory control (a logistics function) by maintaining records for each shoe stocked in the store. The shoe store IS also supports a sales and marketing function by analyzing sales in a variety of ways. Other typical IS components include personnel, production, finance, and accounting. However, integrated IS processing, such as that in an enterprise system, has allowed the distinctions among these separate systems to become blurred. 1O  Flow 5. The IS sends a request to the warehouse to ship goods to the customer. This request identifies the goods and their location in the warehouse.  Flow 6. A document (i.e., a packing slip) identifying the customer and the goods is attached to the goods.  Flow 7. The goods are shipped to the customer. 12  Flow 8. The shipping department reports to the IS that the goods have been shipped.  Flow 9. The IS prepares an invoice and sends it to the customer.  Flow 10. The IS sends management a report comparing actual sales to previously established sales quotas. These 10 flows highlight several important concepts:  The information process facilitates operations by maintaining inventory and customer data and by providing electronic signals (such as those used in automated warehouses) and paper documents with which to execute business events, such as shipments to customers.  The information process provides the means by which management monitors the operations process. For example, management "learns" sales results only from the sales report.  Operations-related processes and accounting-related processes are integrated. For example, the shipping notice triggers the accounting process of updating the sales and accounts receivable data in conjunction with preparing the invoice, which is an operational activity.  Management designs the operations and information processes and establishes these processes by providing people, equipment, other physical components, and policies.  Information process users include operations personnel, management, and people outside the organization, such as the customer. Our discussion of Figure 1.4 should make it clear that the IS can be crucial to an organization's success by facilitating the day-to-day operations processes and by providing useful information for the organization's management. Let's examine the attributes that make information useful to a decision maker and how management can make use of that information to drive the organization toward achieving its strategic objectives. Management Uses of Information An IS serves two important functions within an organization. First, the IS mirrors and monitors actions in the operations system by processing, recording, and reporting business events. For example, the IS processes customer orders; records sales to customers by updating sales, accounts receivable, and inventory data; and produces invoices and sales event summaries. The second major function of the IS is to support managerial activities, including management decision making. How do managers use this information? First, they monitor current operations to keep their "ship" on course. For example, managers need to know if enough inventories are being produced or acquired each day to meet expected demand. Managers' second use of information is to help measure and report results for their stakeholders (e.g., customers, stockholders). For example, information can measure attainment of goals regarding product quality, timely deliveries, cash flow, and operating income. Finally, managers use the IS to recognize and adapt in a timely manner to trends in the organization's environment. For example, managers need answers to questions such as: "How does the time it takes us to introduce a new product compare to our competitors?" "Does our unit cost to manufacture compare to our competitors? Because information systems provide critical support to such management activities, we must understand these activities, including decision making, to understand the required design features of good information systems. In this section, we discuss, in general terms, management uses of information. Data versus Information Our definitions of data and information are a bit circular. Information is data presented in a form that is useful in a decision-making activity. The information has value to the decision maker because it reduces uncertainty and increases knowledge about a particular area of concern. Data are facts or figures in raw form. Data represent the measurements or observations of objects and events. To become useful to a decision maker, data must be transformed into information. Figure 1.5 (pg. 18) illustrates the transformation process. Notice that part (a) repeats the functional model of an IS that we saw in Figure 1.3 (pg. 13), whereas part (b) uses the same symbols with different labels. Might you conclude, then, that the function of the information system is to capture and transform data into information? Absolutely. We said, however, that information must be useful in decision making. What attributes give information its utility value? Let's answer this question next. Qualities of Information To provide output useful for assisting managers and other users of information, an IS must collect data and convert them into information that possesses important qualities. In this section, we examine some of the elements of information quality that allow you to design and control the collection and processing of data. Exhibit 1.2 (pg. 19) describes qualities of information that, if attained, will help an organization achieve its business objectives. Figure 1.6 (pg. 20) presents an overview of information qualities depicted as a hierarchy. In the following paragraphs, we discuss and expand upon these various information qualities. You can see from the exhibit that the effectiveness quality overlaps with other qualities because it includes such measures as "timely" (i.e., availability) and "correct" (i.e., integrity). The effectiveness of information must be evaluated in relation to the purpose to be served-decision making. Effective information is information that is useful for the decision to be made. Effectiveness, then, is a function of the decisions to be made, the method of decision making to be used, the information already possessed by the decision maker, and the decision maker's capacity to process information. The superior factors in Figure 1.6, such as "users of information" and "overall quality (decision usefulness)," provide additional emphasis for these points. The examples should make these points clear. 14 Understandability enables users to perceive the information's significance. Valued from the user's point of view, understandable information is presented in a form that I I I •. ----1 I 1_ - - - - - - - - I Users I~ - - - - - - - __ I 1 __________________ •.• (a) Functional model of an information system permits its application by the user in the decision-making situation at hand. For example, information must be in a language understood by the decision maker. By language, we mean native language, such as English or French, as well as technical language, such as those used in physics or computer science. Also, information that makes excessive use of codes and acronyms may not be understandable to some decision makers.· Information has relevance when it is capable of making a difference in a decision making situation by reducing uncertainty or increasing knowledge for that particular decision. For example, a credit manager making a decision about whether to grant credit to a customer might use the customer's financial statements and credit history because that information could be relevant to the credit-granting decision. The customer's organization chart would not be relevant. The description of reliability of information in Exhibit 1.2 uses the term "appropriate." Relevance is a primary component of appropriateness. Information qualities Processes Effectiveness Validity Completeness Accuracy (with controls) (timeliness) Process 1 .I .I Process 2 .I .I Process 3 .I Process n .I .I reasonable assurance that, if the processes are effective, your goals for the information qualities will be achieved. Conflicts among the Information Qualities Simultaneously achieving a maximum level for all the qualities of information is virtually impossible. In fact, for some of the qualities, an increased level of one requires a reduced~ level of another. In one instance, obtaining complete information for a decision may require delaying use of the information until all events related to the decision have taken place. That delay may sacrifice the timeliness of the information. For example, to determine all the merchandise shipments made in November, an organization may have to wait until several days into December to make sure that all shipments get posted. Let's look at another example. To obtain accurate information, you may carefully and methodically prepare the information, thus sacrificing the timeliness of the information. For example, to ensure the accuracy of a customer invoice, billing clerks might check the invoice for accuracy several times and then get their supervisor to initial the invoice, indicating that the supervisor also has checked the invoice for accuracy. These procedures certainly delay the mailing of the invoice. Management Decision Making We have asserted that the purpose of an IS is to facilitate an organization's business processes and to support management decision making by providing information that managers can use to plan and control the activities of the firm. Let's pursue the meaning and importance of decision making. Very simply, decision making is the process of making choices, which is the central activity of all management. Managers make decisions or choices that include what products to sell, in which markets to sell those products, what organizational structure to use, and how to direct and motivate employees. Herbert A. Simon, a Nobel-prize-winning economist, described decision making as a three-step process: 1. Intelligence. Searching the environment for conditions calling for a decision. 2. Design. Inventing, developing, and analyzing possible courses of action. 3. Choice. Selecting a course of action. IS ~ Environmental information ~ Organizational information ~ Decision situations ' \ Alternate courses of action '\ Selected course of action "'" Information ------....related to possible courses of action NOTE: To simplify the figure, we have omitted feedback loops to each of the circles. Such feedback, of course, is an integral part of decision making and should improve the intelligence, design, and choice that occur as part of an iterative process. Information _____________________ _ about outcomes of possible courses of action Figure 1.8 depicts these three steps. Analyze the figure to see what information is required for each step. Information from and about the environment and the organization is needed to recognize situations or problems requiring decisions. For example, information about economic trends, marketing intelligence, and likely competitor actions should help management recognize opportunities for new markets and products . Information about inefficient or overworked processes in the organization should focus management's attention on problems in the organization. Managers use information from inside and outside the organization to design courses of action. For example, information about personnel resources, production capacity, and available distribution channels should help management develop alternative methods for producing and distributing a new product. Finally, a manager requires information about the possible outcomes from alternative courses of action. For example, to choose among alternative production options, a manager needs information about the costs and benefits of the alternatives or about the probability of success of each option. The pyramid on the left side of Figure 1.9 (pg. 24) represents data flows related to the processing of business events. It emphasizes that operations and information flows are both horizontal and vertical and that there are several levels of management. 16 At the level of operations and business events processing, the flows are horizontal as the information moves through operational units such as sales, the warehouse, and accounting. In the sales example of Figure 1.4 (pg. 15), the operational documents and records are the outputs of these horizontal flows. Operations management Operations and business event processing Unstructured decisions Structured decisions t t Well Defined Internal t Detailed Future • I , I I I I I I I t t Historical Frequent I I I I I I I I I T More Accuracy For example, horizontal flows relate to specific business events, such as one shipment, or to individual inventory items. This information is narrow in scope, detailed: accurate, and comes largely from within the organization. The data captured at the operations and business event processing level constitute the foundation for the vertical information flows that service a multilevel management function. . On the other hand, information useful to operations management personnel is often an aggregate of data related to several business events. For example, a report summarizing shipments made each day might be useful to the shipping manager. At the operations management level, supervisors use this type of information to monitor daily functioning of their operating units. The vertical information useful to operations management is a summarized and tailored version of the information that flows horizontally. Tactical management requires information that focuses on relevant operational units and is more summarized, broader in scope, and need not be as accurate as the information used by operations management. Some external information may be required. For example, a warehousing and distribution manager might want information about the timeliness of shipments each month. Finally, strategic management requires information to assess the environment and to project future events and conditions. Information is even more summarized, broader in scope, and comes from outside the organization more than does the information used by tactical management. To be useful to division managers, chief financial officers (CFOs), and chief executive officers (CEOs), information must relate to longer time periods, be sufficiently broad in scope, and be summarized to provide a means for judging the long-term effectiveness of management policies. External financial statements, annual sales reports, and division income statements are but a few examples of strategic-level information. We should note, however, that current computer technology facilitates access to detailed data at all management levels. The decision's structure, or lack thereof, also heavily influences the kind of infor- mation required to make a decision. Structure is the degree of repetition and routine in the decision. Structure implies that you have seen this very decision before and have Undefined External Summarized • • • Less Infrequent Accuracy • •