Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 5.20
5-25. Classic Photography Inc. (System Flowcharts)
Phone
Call if
Necessary
Check
Merchandise
vs PO
Prepare open
invoices for
payment
Check
Supplier
Invoices
Enter
Order
Merchandise
Arrives
Supplier
Purchase
Order
Supplier
Fax
to
Supplier
Purchase
Orders
Create
Purchase
Orders
Enter
Order
Employee
Requests
Purchase
Requisition
Open
PO
PO
Invoice
SM 5.22
2. Decision table
Rules
1
2
3
4
Conditions
Purchase is less than $100 by known customers in
good standing
Y
N
N
N
Purchase between $100 and $500
*
Y
N
N
Purchase over $500
*
*
Y
N
Credit purchase attempted by new customer not yet
approved for credit
*
*
*
Y
Credit purchase by customer not in good standing
*
*
*
Y
Actions
Approve purchase
X
Require approval of supervisor
X
Require approval of accounts receivable manager
X
Purchase denied
X
3. Decision Tree
4. Student preferences. This question asks for student preferences, which of course will vary
decision table.
5. One possible control issue here is the credit limit. The maximum of $500 might be too large
rules might not be followed by store personnel, even if they are the rules.
5-27. Stingy Upstate University (Process Maps, Decision Tables, and Decision
Trees)
SM 5.24
3. Decision Tree
4. Student preferences. This question asks for student preferences, which of course will vary
decision table.
5. Are these rules reasonable? The university’s travel office rules might be justifiable if the
institution saves more than the cost of its travel Nazi, Marsha Tightfist—her salary of $50,000
Another consideration is the ill will generated among faculty members by such stringent rules.
Faculty resentment might surface in unforeseen ways—for example, by making it harder to
Most businesses, and certainly most public accounting offices, understand all this and have more
generous reimbursement schedules. Many ignore individual meal costs and use the standard
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 5.25
5-28. The Dinteman Company (Document Analysis)
1. a) Data items which should be included on a repair/maintenance work order document are
as follows:
1. Job identification – department (or plant) for which work is to be done, machine or
b) The company requires at least four copies of the work order, with a possible fifth copy if
a work order summary is not prepared. The work order is prepared in the R & M
1. Copy 1 (original) – Once the job is completed and all data has been recorded on the
work order, this copy is forwarded to the Accounting Department for costing and then
An evaluation of the performance of the R & M Department would probably be done in
three departments as explained below:
The department that requests the work should compare the estimated charges indicated on
the Work Order Request with the actual charges and the timeliness of the work, (e.g., the
The supervisor of the R & M Department would conduct a self-evaluation by comparing
SM 5.26
comparison would be important for evaluating the staff in the department and also for
preparing future estimates.
The Accounting Department (or some other appropriate department) would probably
2. Document flowchart.
Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman
SM 5.27
ACCOUNTING
DEPARTMENT
Prepare cost
estimates for
materials and
labor. schedule
time for work
3
2
4
3
2
PRODUCTION
DEPARTMENT
REPAIR & MAINTENANCE
DEPARTMENT
File
Post
estimates
and
suggest
Time
1
Service
Request
1
Service
Request
3
2
File
File
2
Work
Order
2
Work Order
(completed)
Complete
detailed
costing
1
Work Order
Summary
2
1
Work Order
(completed)
File
1
Work Order
Summary
2
Work Order
Summary