Decision Support Systems in Finance and Accounting

(Hardback)

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Description

The rise of smaller microprocessor-based computers has provided new avenues for distributing computing power throughout an organizational hierarchy. It has also raised serious questions about the accessibility of specific data resources as well as about the distribution of authority and the use of certain management procedures. This book provides a broad-based approach to decision support systems (DSS) and their applications to finance and accounting. Heymann and Bloom go beyond description of DSS applications for particular system configurations to provide a technical analysis. They identify the changing roles over time of finance and accounting within organizational management and business control systems, outline the foundation of economic models within the objectives and methodology of scientific research and provide an introduction to the logical structure of theoretical models in finance and accounting. The systems approach is examined as an alternative to the traditional decision model approach and different tasks within a firm are presented in terms of complex and integrated management processes. In addition, the authors describe the role of DSS in the management of a firm, present specific applications of DSS in the areas of finance and accounting and discuss the future outlook for DSS in computerized management systems as well as their possible effects on organizational structures and management control procedures.

Reviews

In this philosophical book, Heymann and Bloom consider the development and applications of computer-based decision support systems (DSS). Finance and accounting are grounded in economic theory and the concomitant logic and simplifying assumptions of such theory. While this approach reduces complexity and thus simplifies the analysis of problems, it also creates a gap between theory and practice because active decision making involves complexity and subjectivity. Computer-based DSS permits management to introduce complexity and to expand the scope of a problem so that other more important factors may be part of its specification. In addition, DSS allows interactive access to data files and computer software, thus enhancing participatory management. While the authors do not deny the importance of classical economic theory, they suggest that DSS provides managers with practical procedures that permit them to anticipate problems, control the impact of unanticipated changes, and resolve existing problems. The authors attempt to bridge the gap between economic theory and business practice, suggesting possible contributions of DSS in integrating the functional areas of business. However, the discussion is abstract and appropriate only for seniors and graduate students.-Choice
"In this philosophical book, Heymann and Bloom consider the development and applications of computer-based decision support systems (DSS). Finance and accounting are grounded in economic theory and the concomitant logic and simplifying assumptions of such theory. While this approach reduces complexity and thus simplifies the analysis of problems, it also creates a gap between theory and practice because active decision making involves complexity and subjectivity. Computer-based DSS permits management to introduce complexity and to expand the scope of a problem so that other more important factors may be part of its specification. In addition, DSS allows interactive access to data files and computer software, thus enhancing participatory management. While the authors do not deny the importance of classical economic theory, they suggest that DSS provides managers with practical procedures that permit them to anticipate problems, control the impact of unanticipated changes, and resolve existing problems. The authors attempt to bridge the gap between economic theory and business practice, suggesting possible contributions of DSS in integrating the functional areas of business. However, the discussion is abstract and appropriate only for seniors and graduate students."-Choice

Author Bio

H. G. HEYMANN is Professor of Business Administration at Indiana University Northwest. ROBERT BLOOM is Professor of Accounting at John Carroll University in Ohio.