4. Prepare an organization chart showing the management structure of Fizzy Cola Bottling Company of Georgia. Make up names for any individuals who are not referred to by name in the case and include other positions that you feel would be needed either at the corporate headquarters or at a sample distribution center. There is no need to include all of the distribution centers.
5. Prepare in good form flowchart of the sales order processing, production, and cost accounting systems used by FCBCG. Be sure to properly represent the various types of paperwork, file media, processing operations, and reports involved.
Figure: Transaction Cycle
Figure: Data Flow Diagram Sales Order Processing
Figure: Flowchart Showing Areas of Activity
6. Evaluate the adequacy of the existing computer system and processing technology.
The present accounting system works reasonably well, although there is increasing concern that it has not kept pace with the advances made in production and materials-handling technology. The batch processing system based on conventional files is cumbersome and slow, and communication with the distribution" centers is primitive. The manager of the computer center has recommended that a new computer system be installed and that new software be acquired that could interface with a data base management system.
There is another concern with regard to the standard cost system. With the large-scale automation of the company's production plant, the continued relevance of the standard cost system has been called into question more than once.
7. Comment on the extent to which the accounting information system (aside from its computer technology already discussed in Exercise 5) has kept pace with improvements in the production and materials handling systems. Is the accounting system seriously deficient?
Yes, it is. The manager of the computer center has recommended that a new computer system be installed and that new software be acquired that could interface with a data base management system. Control is required on a minute-by-minute basis. With the large-scale automation of the company's production plant, the continued relevance of the standard cost system recommendations for an Improved System.
The firm would be asked to develop an overall plan for the accounting system that would address the various concerns mentioned earlier; to evaluate the existing system; and to make appropriate recommend actions for an improved system. Some improvements might be relatively minor, such as providing additional management reports. Others might be more radical, such as replacing the present computer hardware and software with more modern technologies.
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