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1. Identify the importance of wetware costs.
2. Identify an organisation implementing an Accounting Information System.
3. Draw some conclusion


The case study given to us relates with the costs of the wetware.

The meaning of wetware of the human element that is present in the architecture of the information technology.

The wetware costs are the costs that are related with the brain of the users.

This report aims at answering the questions like the meaning of the wetware costs, accounting information system and the advantages of using the same.

Meaning of the Wetware costs:

The meaning of wetware of the human element that is present in the architecture of the information technology.

It could be contrasted with the software and hardware, the other 2 components that could affect the success and the failure of the IT system.

It is used for human capital or the personnel-and comprises of the programmer, developers, system administrators, cloud or the architects of the cloud or the employees that directly affect the functions of the information technology system.

 (, 2015)

The wetware costs are the costs that are related with the brain of the users.

Accounting information system:

The accounting information systems joins the professionals for the knowledge of the business and the processes with the computer skills that create and audit the data and the accounting systems. These individuals also have an access to a number of computer related careers, such as the systems analyst, consultant, and accountant.

(Education Portal, 2015)

The main aim of the accounting information system collects, records, stores and processes the data so as to produce the decision makers. The accounting information system is related with a set of the interrelated products that interacts with each other in order to achieve the goals. Almost all of the accounting information systems consist of the smaller subsystems and each and every organization some or the other goals. The accounting information system could use advanced technology, b very simple as a pen and a paper or anything that is something in between. The technology is a very simple toll that could create, maintain or improve the system.

The main idea behind the concept of the collection, storing of the data, resources and the agents is to transform the data into the management that could be used to make the decision about the events, resources and the agents. The accounting information system could be further used so as to ensure that the resources of the entity are available as and when needed and accurate and reliable.

The following are the characteristics of the accounting information system:

  • Relevance
  • Reliability
  • Completeness
  • Timeliness
  • Understand-ability
  • Verifiability
  • Accessibility

(Accounting information system, 2015)

1. Accounting information system used by Microsoft:-

Nowadays, many of the companies are providing some of the specific package for the process of accounting known as the Enterprise Resource Planning. The accounting information system is a part of the ERP.

Microsoft is using the ERP package of SAP.

(Microsoft, 2015)

The following are the some of the advantages of SAP:

 Advantages of using SAP:-

The following are some of the advantages of using the ERP package of SAP:

  1. It is flexible
  2. It is customized to suit the requirements and the needs of the business
  3. It is integrated with the other business modules
  4. It offers a deep insight into the specific modules that are specific to an industry
  5. It offers continuous support
  6. There is a fall in the processing costs of the sales orders
  7. There is a reduced timing for the calculation of the selling price
  8. There is an increased cash flow
  9. The above stated savings in the costs results in the access to the real time transaction information by all the authorized users
  10. There is a reduced request to quote the time
  11. There is a reduced order to the time of the delivery
  12. There is a reduction in the delivery to invoice time
  13. There is a reduction in the amount of the working capital required
  14. There is an increase in the potential of the investment
  15. There is a faster order of the cash in time
  16. An accurate and the timely information is made available that leads to the reduction in the reconciliation of the process of billing and this leads to the quicker payment and a reduction in the accounts receivables and also, goes on to reduce the disputes that arise per order
  17. There is an increased amount of the revenues due to the lesser number of the stock outages
  18. There is a reduction in the losses that takes place due to the product being out of stock.
  19. Fewer stock shortages
  20. Increase the customer satisfaction
  21. Reduction in the fright costs
  22. Reduction in the distribution costs
  23. Increase in the customer satisfaction into the availability of the higher products.
  24. It is highly efficient
  25. Its support to the infrastructure is unparalleled in the software industry.
  26. There are a number of modules with a huge amount of the functionalities that are nor provided by the other application of the ERP.
  27. There are some of the specific functionalities that have the core competencies of SAP that are not available with the other applications of the ERP
  28. The market share of ERP gives a certainty to the business.

(Dolphin, 2015)

(ERP, 2015)

(BOS, 2015)

(SAP, 2015)



The costs that are related with the wetware are rising as the day. The major step that could be taken in order to resolve the problem of the cost of wetware is the form of the adaptive system.



Accounting Information Systems, (2015). Accounting Information Systems | AIS Guidance and Information. [Online] Available at: [Accessed 9 Jan. 2015]., (2015). Benefits of Using SAP for Your Business. [Online] Available at: [Accessed 9 Jan. 2015].

Dolphin. (2015). Top 10 Reasons Why Using SAP Business Workflow. [Online] Available at: [Accessed 9 Jan. 2015].

Education Portal, (2015). Accounting Information Systems Career and Salary Information. [Online] Available at: [Accessed 9 Jan. 2015]., (2015). Advantages of SAP ERP. [Online] Available at: [Accessed 9 Jan. 2015]., (2015). Reducing Cost While Simplifying Administration: Monetizing the Benefits of SAP ASE. [Online] Available at: [Accessed 9 Jan. 2015]., (2015). What is wetware? - Definition from [Online] Available at: [Accessed 9 Jan. 2015]., (2015). Microsoft Dynamics ERP. [Online] Available at: [Accessed 9 Jan. 2015].






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