Explain How the Five Components of an Information System Are

question 33

Essay

Explain how the five components of an information system are arranged in terms of ease of change and organizational disruption.

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Definitions:

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment gives the investor significant influence over the investee.

Intra-entity Purchases

Buying and selling of goods or services between departments or divisions within the same company.

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in managing its production and labor costs.

Intra-entity Transfer

A transaction occurring between divisions or units within the same legal entity.