The Major Benefits of Using the REA Model as the Basis

question 48

Multiple Choice

The major benefits of using the REA model as the basis for designing an AIS include all of the following except

• A)the REA data model integrates non-financial and financial data in the AIS.
• B)the REA data model makes both non-financial and financial data easily accessible to management.
• C)the REA data model provides the basis for building the kind of flexible AIS that is responsive to management's changing information needs.
• D)the REA data model reduces the need for accountants to understand the underlying accounting journals and ledgers.

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Definitions:

Centralized

An organizational structure where decision-making authority is concentrated at the top levels of management.

Procedures Manuals

Documents that provide a detailed description of the steps and actions required to complete specific tasks.

Highly Formalized

A description of organizations or systems where procedures and rules are strictly followed, often with detailed documentation and protocols.

Separate Product

A distinct item or entity that is produced individually or can be easily distinguished from other products in a line or category.