Question

Accounting information system course.

Please no hand writing and copied answers.

Q: Explain the benefits of adopting an REA approach to information systems compared to a traditional approach

Answer 1

Followings are the benefits of adopting REA approach to information system compared to a traditional approach :

• REA approach creates a central database that integrates Accounting with other Business processes whereas, in the traditional approach accounting remains an independent process.
• REA provides both financial and non financial information. On the other hand traditional approach provides only financial information.
• REA supports multiple user view whereas traditional approach provides restricted user view.
• REA helps managers identify non value added activities that can be eliminated.
• REA supports wider range of management decision.
• REA assist in Value Chain Analysis.