Accounting Information Systems
9th Edition
ISBN: 9781133934400
Author: James A. Hall
Publisher: Cengage Learning
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Question
Chapter 5, Problem 3ICC
a.
To determine
Prepare a data flow diagram of the current system.
b.
To determine
Prepare the system flowchart of the existing system.
c.
To determine
Explain the physical internal control weaknesses in the system.
d.
To determine
Create a system flowchart of a redesigned computer-based system that resolves the control weaknesses identified.
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Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income.
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Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income.
The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480.
The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details:
Â
Voltage Regulator
Direct materials ($150 per unit x 320 units)
$480,000
Direct manufacturing labour ($60 per unit x 3,200 units)
192,000
Variable manufacturing overhead costs ($30 per unit Ă— 3,200 units)
96,000
Fixed manufacturing overhead costs
$624,000
All the frames division’s…
Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income.
The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480.
The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details:
Â
Voltage Regulator
Direct materials ($150 per unit x 320 units)
$480,000
Direct manufacturing labour ($60 per unit x 3,200 units)
192,000
Variable manufacturing overhead costs ($30 per unit Ă— 3,200 units)
96,000
Fixed manufacturing overhead costs
$624,000
All the frames division’s…
Chapter 5 Solutions
Accounting Information Systems
Ch. 5 - Prob. 1RQCh. 5 - What purpose does a purchasing department serve?Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Some organizations do not use an AP subsidiary...
Ch. 5 - What is the purpose of the blind copy of a PO?Ch. 5 - Prob. 12RQCh. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - The level of day-to-day department activity in...Ch. 5 - Prob. 5DQCh. 5 - What is central to a successful EDI...Ch. 5 - Discuss the objective of eliminating the receiving...Ch. 5 - What purpose does multilevel security control play...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQCh. 5 - Prob. 1PCh. 5 - INVENTORY ORDERING ALTERNATIVES The flowchart for...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - Prob. 11PCh. 5 - SMITHS MARKET (SMALL BUSINESS ACCOUNTING SYSTEM)...Ch. 5 - Prob. 2ICCCh. 5 - Prob. 3ICCCh. 5 - Prob. 4ICCCh. 5 - Prob. 5ICCCh. 5 - GREEN POND NURSERY (STANDALONE PC-BASED ACCOUNTING...Ch. 5 - Prob. 7ICCCh. 5 - Prob. 8ICC
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