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Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 10.7
authorized purchase requisitions.
When a new vendor is approved, the vendor information from the new vendor form is keyed
record on the product master file.
When corporate purchasing agents (or other approved personnel) receive authorization to make a
and (3) creates a purchase order summary report.
10-20.
a. The events in Save Today’s sales process are:
i. Customer selects goods
ii. Customer and sales clerk participate in sale
iii. Customer pays
In the retail store, the sales clerk may collect some data about the customer at the point of
sale. However, if the sale is for cash, it is possible that the store never collects data about the
customer. In the online store, the system can collect data about the customer at any point.
c. Some stores ask customers for their zip code and/or phone number. They do this to track
demographic data about customers and sales. Online stores can collect a lot of data about
customers easily. If you buy online, you need to supply address and, frequently, credit card
information. You may need to provide other data as well. To improve customer satisfaction,
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 10.8
improve their service. One way to collect data to improve service in a public accounting firm
or any professional service firm is to create a knowledge management system. These
systems may contain data about client Best Practices that professionals can use to better
service new and existing clients. Some public accounting firms are creating customer portals
accounting standards.
Case Analyses
10-21. Food Court Inc. (Sales Process)
1. The answer depends on the volume of business. The costs are the $400 software charge and
the increase in credit card rate. If annual sales are $100,000, the extra .5% amounts to $500.
SM 10.9
2. See flowchart below:
System verifies
credit card
Accountant
retrieves
transactions
Card #
Valid?
No
Error
Message
Accountant
charges card
and gets
validation
Accountant enters
validation #
Print receipt
and update
database
Database
Receipt
Yes –
Encrypt data &
send to UB
computer
Customer enters
credit card &
amount
SM 10.10
3. There are not too many risks associated with the sales process itself. There is the risk that:
bear that risk
the customer will input an incorrect dollar amount for the sale
the online system could go down
10-22. The Caribbean Club (Customer Relationship Management)
1. The students might have a lot of different ideas from their own point of view, but what we
want them to do in this case is to consider the business advantages and disadvantages from an
the chapter:
more accurate data in AIS (avoid human error in entering sales data)
Possible disadvantages might include:
initial cost of RFID readers
2. In a retail environment such as this, the following information might be useful:
gender and perhaps age of patron
types of drinks that are most popular
peak times for patrons to visit
There are a number of CRMs available that students might select. This would be a good time
SM 10.11
3. From a patron’s point of view, there might be several advantages:
the status of having access to a VIP area of the club
4. This is an interesting question, which the students might enjoy discussing. The point here is
have the chip implanted strictly for the novelty even if it were useful only on vacation.
10-23. Mount Pleasant Community College (Purchasing Process)
1. The events are: Purchase Requisition; Purchase Order; Receipt of Goods/Services; and Cash
Payment
2. Employees could complete Purchase Requisition forms on the company’s intranet. The
completed requisitions could be forwarded to the appropriate party for approval. Approvals
order can be routed through the Intranet to receiving and accounts payable. Receiving clerks
can complete receipt information and forward that via e-mail to the appropriate
invoice, receiving report and purchase order amounts do not agree.
