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Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127

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BuyFindarrow_forward

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127
Textbook Problem

Examine the responsibility accounting performance reporting illustration shown in Figure 16.2 (pg. 623).

  1. a. Design a data-coding scheme that will facilitate the aggregation of data as the data “filter” upward. Use the specific facts that appear in Figure 16.2. Make and state any assumptions you think are necessary.
  2. b. In no more than two paragraphs, explain how your coding scheme works. Include a discussion of positions in the organization other than those in the production function.
  3. c. In no more than three paragraphs, explain how your scheme might be handled in a centralized database environment without the codes.

a)

Summary Introduction

To design: A coding scheme that will facilitate the aggregation of data as the data “filter” upward.

Introduction:

General ledger/business reporting process (GL/BR):

General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.

Explanation

A coding scheme that will facilitate the aggregation of data as the data “filter” upward:

02 04 26 12 43208 B0589 A0589

02 – stands for the functional area, for instance, the vice president.

04 – stands for the division, for instance, the superintendent.

26 – stands for the department, for instance, might be the subassembly department.

12 – stands for the category, for instance, might be overhead, materials, labor, and others...

b)

Summary Introduction

To explain: The working of a coding scheme.

Introduction:

General ledger/business reporting process (GL/BR):

General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.

c)

Summary Introduction

To explain: The handling of the coding scheme in a centralized database environment.

Introduction:

General ledger/business reporting process (GL/BR):

General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.

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