1.

USERS OF INFORMATION
Classify the following users of information as either:
I—internal user
T—external user: trading partner
S—external user: stakeholder
a. Internal Revenue Service- I
b. Inventory control manager-I
c. Board of directors-S
d. Customers-T
e. Lending institutions-S
f. Securities and Exchange Commission-S
g. Stockholders-S
h. Chief executive officer-I
i. Suppliers-T
j. Bondholders-S
2. SUBSYSTEMS
Use the human body system to illustrate the concepts
of system decomposition and subsystem interdepen-
dency. Draw a hierarchical chart similar to the one in
Figure 1-2 and discuss the interdependencies.

HUMAN BODY SYSTEMS

CARDIOVASCULAR NERVOUS SYSTEMS MUSCULUSKETAL SYSTEMS HUMAN BODY

SYSTEM SYSTEMS
MOUTH
BRAIN BONES
HEART NOSE

SPINAL CORD MUSCLES

THOAT
BLOOD VESSELS
LEGAMENTS
LUNGS

VEINS
VEINS TENDONS AND JOINTS

ARTERIES

CAPILLIARES

3. ACCOUNTING INFORMATION
SYSTEM MODEL
Examine the diagram below and determine what essen-
tial mechanism is missing. Once you have identified the
missing element, discuss its importance

 In the diagram given, 3 essential mechanism were missing which is the external source of
data, the ecternal end users and the feedback. For me the most important element that is
missing is feedback because the overall gathering of information maybe all be useless
since there were no feedback given at all meaning the internal users were not able to
generate accurate data and that the management itself cannot function properly in
decision making because the information gathered does not have any feedback at all.
Decision making is one the most important role of internal users which includes the
managers of the business.
 4. ACCOUNTING INFORMATION
SYSTEM & MANAGEMENT
INFORMATION SYSTEM FEATURES.
-Salespeople may benefit from AIS information in historical sales data by customer and
product line, gross margin,profit, sales,sales return etc. With MIS it would include
complaints, delivery time, and reasons of returning the products, how to market the
product line, sales forecast and so on. To integrate these information would have an
effiecient outcome especially that AIS and MIS is directed towards, financial and
nonfinancial transactions.

5. INFORMATION SYSTEM
CATEGORIZATION
Classify the following items as either:
TPS—transaction processing system
FRS—financial reporting system
MRS—management reporting system
a. Variance reports-MRS
b. Sales order capture-TPS
c. Balance sheet-FRS
d. Budgets-TPS
e. Purchase order preparation-TPS
f. Tax returns-FRS
g. Sales summary by product line-FRS
h. Cash disbursements preparation-FRS
i. Annual report preparation-MRS
j. Invoice preparation-TPS
k. Cost-volume-profit analysis-FRS

6. FLAT-FILE VERSUS DATABASE

MODEL
Outline the traditional problems associated with the flat-
file model that are resolved by the database model.
 Elimination of data redundancy- In flat-file model the data is only used by a single
person, which implies that if other persons would want to access the data then we have to
make another set of process for that data but in database model more can access a single
data and it is being shared by lots of people.
 Single update
Because each data element exists in only one place, it requires only a single update
procedure. This reduces the time and cost of keeping the database current.
 Current values
A single change to a database attribute is automatically made available to all users
of the attribute. For example, a customer address change is immediately reflected in the
marketing
and product services views when the billing clerk enters it.
 7. ORGANIZATION FUNCTIONS
Based on Figure 1-8, draw a diagram of functional
segments for an oil company that has the following
operations:
a. A head office in New York City responsible for
international and national marketing, acquisition of
leases and contracts, and corporate reporting.
b. Two autonomous regional facilities in Tulsa, Okla-
homa, and New Orleans, Louisiana. These facilities
are responsible for oil exploration, drilling, refining,
storage, and the distribution of petroleum products
to corporate service stations throughout the country
and abroad

NYC BRANCH PRESIDENT

NYC National and

Regional Facilities
Intenational dept.

MARKETING Legal Production Distribution

Accounting
MANAGEMEN Management
T
Inventory Control
PRODUCT Acquisition
PROMOTION STORAGE
of Leases

Cost Accounting Maunfacturing

ADVERTISING
SHIPPING
Payroll
Acquisition Oil
RESEARCH of contracts exploration
AND
DEVELOPME Accounts Payable
NT
Drilling
Accounts
Receivable

SALES Refining

Billing

General Ledger
 8. ORGANIZATION FUNCTIONS
Based on Figure 1-8, draw a diagram of functional segments for a manufacturer of
diversified products. The general characteristics of the firm are as follows:
a. The organization produces three unrelated products:lawn and garden furniture for sale
in home im-provement centers and department stores; plastic packaging products for the
electronics and medical supply industries; and paper products (for example,plates, cups,
and napkins) for the fast food industry.
b. Although the manufacturing facilities are located within a single complex, none of the
three products shares the same suppliers, customers, or physical
production lines.
c. The organization’s functional activities include design, production, distribution,
marketing, finance, human resources, and accounting.

NYC BRANCH PRESIDENT

NYC National and

Regional Facilities
Intenational dept.

MARKETING Legal Production Distribution

Accounting
MANAGEMEN Management
T
Inventory Control
PRODUCT Acquisition
PROMOTION STORAGE
of Leases

Cost Accounting Maunfacturing

ADVERTISING
SHIPPING
Payroll
Acquisition Oil
RESEARCH of contracts exploration
AND
DEVELOPME Accounts Payable
NT
Drilling
Accounts
Receivable

SALES Refining

Billing

General Ledger

9. FUNCTIONAL SEGMENTATION
 The current organization structure of Blue Sky Company,a manufacturer of small sailboats, is presented
below.
Required
a. What operational problems (for example, inefficiency, errors, fraud) do you think Blue Sky could
experience because of this structure?
b. Draw a new diagram reflecting an improved structure that solves the problems you identified. If nec-
essary, you may add up to two new positions.

a. Base on the given diagram, I can see that there is a possibility of fraud to happen in blue
sky Company because of their organizational structure. In my own point of view the Cost
Accounting as well as the preparation of payroll should be under the financial manager.
To avoid misrepresentation and fraud the handling of transactions that involves money
shall be in the hands of the finance department for a better control in the system.

PRESIDENT

VP PRODUCTION VP MARKETING

Production Sales Financial

Inventory
Foreman Manager Manager
Management

Cash
Manufacturing Receipts
Inventory
Warehouse

Product Accounts
Assembly Sales Payable

Purchasing
Accounts
Inventory Control Credit Receivable
Approval
Inventory
ControL Cash
Disbursements
Customer
Billing
Cost Accountng
Timekeeping

Payroll processing

10. COMMUNICATIONS
-Before the mid-1970s, systems programmers and businesspeople (including accountants) did
not communicate well with one another. The programmers were criticized for using too much
jargon, and the business-people were criticized for not adequately expressing their needs. Efforts
have been made to overcome this communication gap, but room for improvement still exists.
What problems do you think resulted from this communication gap? What do you think you can
do to help close the gap even more when you enter the workforce?
-The problems that business people experienced because of this communication gap is the slow
processing of data and information which in return gives access to limited people and the data
that were given are used only once. If another entity makes a request for them to have access in
the business’s data then the management needs to conduct another process to come up with the
data being requested. I do believe that in everything there is still lapses and there are still things
that needs to be improved. When the time comes and I will be working I would strongly
advocate for a system that is highly protected in which the management will no longer worry that
the private data may be hacked because in today’s time hacking a company’s sytem is really a
very easy task for those hackers.

11. Record Type  Primary Key

Accounts Receivable  Customer Number
Accounts Payable  Vendor Number
Inventory Part Number
Customer Sales Order  Sales Order Number
Purchase Orders to vendors  Purchase Order Number
Cash Receipts from customers  Official Receipt Number
Cash Disbursements to vendors  Check Number
Employee Payroll Earnings records  Employee Number

12.Accounts Payable record-Vendor Number, date expected to be paid, amount to be paid, date
due, signature of the person responsible.
Inventory record-Description, physical amount ,unit price, order quantity, reorder level
Customer Sales Orders record-sales order number,customer number,item number,unit
price,quantity,discount,date billed,date due,ship date.
Purchase Orders to vendors-order number,vendor number, vendor’s part number, part number
(our’s) quantity, date ordered, date required
Cash Receipts (checks) from customers-cash receipt number,customer number,invoice
number,customer’s check number,amount received, date,

13. DISTRIBUTED DATA PROCESSING

Explain why an organization would choose to install a
distributed instead of a centralized computer environment.
-Advantages of DDP. The most commonly cited advantages of DDP are related to cost savings,
increased user satisfaction, and improved operational efficiency. It is saving cost in a way that
less processes were made which implies less expenses. It increases users satisfaction because of
faster process of data and much more convenient in a way that it is organized and sorted out very
well.