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SM 5.11
5-17. Winston Beauchamp Company
Data Flow Diagram:
System Flowchart:
Manual
customer
order
Customer
orders report
Key entry
Process
customer
orders
Product
file
Customer
order file
Key
customer
order
data
Hold
for further
processing
Other
departments
Customer
one copy of
customer order
four copies of
customer order
Customer
order
information
Customer
orders
product
information
Product
file
Customer
order file
SM 5.12
5-18. LeVitre and Sweezy Credit Union
Credit Union
Accounts
Master File
Accounting
Transactions
Creditors
For
Rent,Phone,
Utilities, Etc.
Bank
Employees
Pay
Bills
Prepare
Payroll
Checks
Get
Information
For
Inquiries
Update
Master File
Daily
Create
Monthly
Statements
Make
Deposit
Make
Withdrawal
Employers
Make
Deposit
Customers
SM 5.13
5-19. Jeffrey Getelman Publishing Company
New subscription
orders, renewals,
and checks
Summary Report
of new
subscription
renewals
Summary Report
of address
changes
Mailing
Labels
Notices to
new and renewal
subscribers
Terminal Terminal
Change of
address
forms
CPU
using “Edit
Subscription
Orders“ Program
CPU
using “Change
of Address“
Program
CPU
using “Monthly
Mailing Label”
Program
to production
department
Subscriber
Master
File
to mail
SM 5.14
5-20. The Bridget Joyce Company
a. The decision table is shown below. Note that alternate decision rules would also be
reasonable here since the case does not specify exactly what action is to be taken for each set of
conditions.
DECISION TABLE
RULES
Account Status:
1
2
3
4
5
6
7
8
9
10
11
Not past due
Y
Less than 30 days past due
Y
31-60 days past due
Y
Y
Y
61-90 days past due
Y
Y
Y
More than 90 days past due
Y
Y
Y
Account Activity:
No activity
Y
Y
Y
Y
Y
Written communications
Y
Y
Y
Partial payment
Y
Y
Y
Action:
Do nothing
√
√
√
√
√
√
√
Send first letter of inquiry
√
Send second letter of inquiry
√
√
Refer to collection agency
√
Rating Because
A no prior delinquency history
B only one prior delinquency
C only two prior delinquencies
D more than two prior delinquencies
SM 5.15
Mr. Smith can now make a decision based upon this categorization of customer account
history. We point out that many companies handle delinquencies on an individual basis.
Most small companies, for example, will try to work with their customers whenever possible
instead of writing to them impersonally because written confrontations rarely produce
desired results.
5-21. This problem requires students to draw the flowcharts in Figure 5-20. In a later part
of the problem, students must recreate the flowcharts in Figures 5-3, 5-6, 5-8, 5-11, 5-12, 5-13,
known.
Teaching notes: Students should follow the directions provided in this case to create the two
only assign a selection of these diagrams.
5-22. This problem asks students to visit the ConceptDraw products website at:
http://mapthink.blogspot.com/2012/10/how-flowcharts-help-companies-save.html and read the
the start of the chapter.
SM 5.16
Case Analyses
5-23. Big Fun Toys (Data Flow Diagrams)
Purchasing Vendor
Receiving
Department
Accounting
and
Management
Accounts
Payable
Processing
System
Purchase
Orders
Checks
Invoices
Registers
and
Reports
Receiving
Reports
Context Diagram:
SM 5.17
Purchasing
Department
Receiving
Department
Vendor
Accounting
Management
Vendor
Prepare
Cash
Requirements
Forecast
Process
Vendor
Checks
Process
Accounts
Payable
Level-0 Data Flow Diagram:
Vendor Data
Purchase
Order
Receiving
Reports
Accounts
Payable
Accrual Data
Check
Registers
Accrual
Invoice
Payment
Data
Checks
Accounts
Payable
Information
Vendor
Information
SM 5.18
5-24. The Berridge Company (Document Flowcharts)
1. A document flowchart for the Berridge Company's inventory control system may be found
after #3 (below).
2. The company can eliminate one or more copies of the retail store requisition (RSR) form.
The document flowchart (and case description) indicate that a retail store prepares three
paperwork. One way to reduce it would be to allow the warehouse personnel to create the
computer record that indicates a disbursement to an individual store, thus eliminating the
The company could eliminate all copies of the RSR form by computerizing its
warehousing operations completely. In this new system, a retail store would create a
inventory file and eliminate the pending requisition record from the file of active
requisitions.
3. The company currently creates five copies of each purchase order. These copies are sent to:
(1) the vendor, (2) accounts payable, (3) inventory control, and (4) the warehouse. The
purchasing department retains the fifth copy. This seems excessive. It is obvious that the
company must send one copy of the purchase order to the vendor. In addition, it makes sense
for control purposes to send one copy of the purchase order to the receiving department (for
use in comparing against the subsequent bill of lading), and to retain one copy of the PO to
document the purchase itself.
It is less obvious that the company needs to create the other two copies of the purchase
order. In fact, the document flowchart indicates that both the inventory control
department and warehouse personnel perform the comparison function when goods arrive
- a duplication of effort. Similarly, the company can probably eliminate the copy it
currently prepares for accounts payable. Instead, warehouse personnel can attach its copy
to the receiving report, and the accounts payable department can use the warehouse copy
to prepare a check to the vendor.
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 5.19
A document flowchart for the Berridge Company’s inventory control system.
1
PO
Accounts Payable VendorPurchasing
5
PR
1
RSR
Purchase 1
Requisition
(PR)
Purchase 1
order
(PO)
Inventory
record
1
PR
File
Compare
Prepare
purchase
order
FileFile
Tires and
supplies
Tires and
supplies
Retail Store Inventory control Warehouse
2
RSR
2
2
3
4
PO
POPO
Retail Store 1
requisition
(RSR) 2
3
RSR
RSR
1
Invoice
(INV)
2
PO
PO
1
INV
File
Tires and
supplies
1
RR
2
PO
Compare
Check
2
INV
INV
RR
1
1
3
PO 4
PO
3
RR
Tires and
supplies
File
2
RR
Receiving 1
report
(RR)
4
PO
File
File
Compare
RR
4
2
3
4
RR
RR
RR
