Group Assignment

group 2 :Abdi Fakhruddin R 1210534023M.Alvicky Satyawardana 1210534006Mushlihatud Dina1210534017Sasqia Arisca1210534024

Determination of System Objectives

Prepare a statement of objectives for an accounting information system relevant to FCBCS's requirements

Accounting information system is important in processing data and information to the user because accounting information system is a system of collection, storage and processing of financial and accounting data that is used by decision makers Accounting information system is responsible forprovidingtimely andaccuratefinancialand statisticalreports for internalmanagementdecision making, and for externalpartiessuch ascreditors,investors, and regulatory andtaxationauthorities.

An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources and almost of all company use it, just a little bit doesnt. The computer system supports multitasking, operating in a batch mode. The system on batch program is run that automatically assigns order numbers and writes the sales records to the master sales file. The reader will note that some of esc files should more accurately be referred to as transaction files.

In Fizzy Cola Bottling Company, accounting information system is a media to record all of company purchasing, production, sales order processing, and related inventory control functions. Accounting information system also becomes a media to repair information and existing system.

Does FCBCS's strongly centralized management style affect the type of accounting system the company needs? Would it make any difference if middle managers at the Payakumbuh headquarters? distribution-center managers, had more autonomy?

Yes, because the management is highly centralize and its affect the type of accounting system the company needs. The type of accounting system is choosen by the decision of center management because all policies and decision is taken first by center management and its also to the system.

Yes, it would make any difference if middle managers at the Payakumbuh headquarters. I think if the company just have small management it is good toa the company who in a large of sales. And even, the management hold by central management and sometime their autonomy is just ceremonial and the upper management keep them on a short leash and they less their responsibility and authority. If middle managers at the Payakumbuh headquarters it wouldnt be like that.

Would it make any difference if distribution-center managers had more autonomy. If the distribution-center managers had more autonomy it has two possibility. The first, the managers run their task well because they have more autonomy, they can extend the business because they have authority to make it more wide and be resposible. The second, they job not running well because the area that they handle is more wide and sometimes they cant handle it all. And also if they not responsible with the job that more wide as before, but it depend on the managers human resource

What are the accounting implications, if any, of the just-in-time inventory and flexible-manufacturing concepts ?

The company has never achieved the ideal just in time inventory system, but over a ten-year period it has The company has never achieved the ideal just in time inventory system, but over a ten-year period it has managed to reduce its inventories or syrup concentrate, carbon dioxide, containers, and labels from ten days to every days supply. To accomplish this feat the company entered into long term relationships with a small number of loyal vendors, guaranteeing demand for delivery goods and sharing with them its long run purchasing expectations. The vendors in return, guarantee consistent quality and on schedule delivery.

Fast moving items are delivered daily, or in some instances even more than once per day. To meet production needs. Although restricting purchases to just a few vendors reduced competition and may have resulted in some what higher raw materials prices, FCBCS has benefited from the relationship with its vendors through lower inventories and fewer rejects. For example, ten years ago, nearly one percent of the cans received from vendors were rejected today, the rejection rate is less than one hundredth of one percent. Reducing finished goods inventory to such low levels is relatively easy if demand can be predicted accurately or better still, controlled. Demand for soft drink products is seasonal. However, fifty years data are available, both from industry and company sources, documenting demand fluctuations from month to month, and even from week to week.

Prepare an organization chart showing the management structure of Fizzy Cola Bottling Company of Sumatera. 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.

The managament structure in beginning operetion (2001)thjThe managament structure in beginning operetion (2001)

Flow chart

Flow chart

Evaluate the adequacy of the existing computer system and processing technology.

The present accounting system works reasonably well, although there is increasing concern that is has not kept pace with the advantages made in production and materials handling technology

The purchasing, production, sales order processing and related inventory control functions were computerized. The cost accounting, billing and collections, general ledger and payroll applications were completed.

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?

The company have the good Accounting system. Because the present accounting system was instituted in the early 2010. It was designed by a project team composed targety or personnel from the CPA firm that performed FCBS external audit. One of the major accounting applications is a standard process costing system. The consulting firm that designed the accounting system stressed the attractiveness of standard costing because of the continuos production of standadized products.

Prepare an overall strategy for making FCBCS's accounting information system more responsive to the company's needs.

Exhibits 4 and 5 show detailed reports-for each product and process-of standard production costs and variances from standard. These reports would be suitable for routine distribution to first-level management. Design summary reports, showing the corresponding totals for each process and for the company as a whole, that would be distributed to a higher level of management.

You agree with the computer-center manager that the present conventional file system should be replaced with a relational data base management system. In order to implement such a system, the present files are replaced by suitable tables. These tables must be concise, properly keyed, and free from redundancy.

Take the file specifications presented in Exhibits 1-3 draw E-R Model (diagram) and design a set of relational data base tables

CustomerCompanyProduceProductOFProductionOrderE-R Model (diagram)

In order to further reduce inventory levels and improve the timing of deliveries, an electronic data interchange (EDI) system could be implemented, providing on-line communications with suppliers. To order a raw material, a designated employee would key in the supplier's code number and the catalog number and quantity of the material needed. An electronic purchase order would then be transmitted to the supplier. Rod Bunion has read about this concept in a trade journal, but is not sure whether it would be worthwhile for FCBCS. Investigate the feasibility of an EDI system and write a memo to Mr. Bunion, detailing both its positive and negative features. Conclude with a recommendation to proceed or not to proceed with the design of such a system..

thank you.

******