·         Information is a business source

·         Operations management: Directly responsible for controlling day-to-day operations.

·         Middle management: Accountable for short-term planning and coordinating activities to accomplish organizational objectives.

·         Top management: Responsible for long term planning and setting organizational objectives

·         External users: Trading partners and stakeholders.

The three level of information flows within the business kept everything in the business going. All three-management play lots of important role in the business. For example, the top management is responsible for long term planning and setting organizational objectives. Setting perfect goal for the organization will provide positive influence towards the lower management to achieve daily objectives.

Accounting Information System and Management Information System
•Accounting Information System

An economic event that affect the assets and equities of the organization

•Non-financial Transaction 

•An event that doesn't meet the definition of a financial transaction

·         A financial transaction is an economic event that affects the assets and equities of the firms, is reflected in its accounts and is measured in monetary terms.

•Physical component (acquisition of goods)

•Financial component (cash disbursements to the supplier)

•Cost accounting system (monitors the flow of cost information related to production)

•Once recognized, how do managers achieve what is right?