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I.T. 5



A. Archiving a record is an
alternative to deleting a
record? What is the
benefit that can be
derived from it?
B. Are large batch sizes
preferable to small batch
sizes when it comes to
data processing? Explain.

C. Discuss the importance of
accounting independence
in accounting information
systems. Use an example
aside from inventory

D. Does banking system use
real/ on-line processing or
both real time and batch
processing. Provide a

Deleting means removing records or
information completely while Archiving means
moving the record or information in a
permanent storage to free up a space in the
system. The benefit of archiving a record is it
lets you retrieve your record when the need
of it arises.
No. Small batch sizes are preferable than
large batch sizes because small ones produce
fewer queues, give faster cycle time, increase
urgency, and decrease risk through faster
It is important because the information
reliability requires the use of accounting
independence. The accounting activities must
be separate and independent of the
functional areas maintaining resources.
Decisions makers in these functions require
that such vital information be supplied by an
independent source to ensure its integrity.
An example of accounting independence is
the payroll process. It organizes all the tasks
of employee payment and the filing of
employee taxes. These tasks include keeping
tracks of hours, calculating wages,
withholding taxes and deductions, printing
and delivering checks and paying
employment taxes to the government.
Banking system uses both real time and batch
processing. Real time is used when processing
transactions without delay like when the
customers deposit money in the bank or
withdraws money from the bank, the record of
the customers reflect their current status or
the transactions they made. Batch processing
is used by the bank in terms of payroll

I think MS Office System is a backbone system because it consist the basic system structure in which to build. . damaged. each record is assigned in a unique disk location or address that is determined by its key value. Give at least one criteria that influence selection of data structure? What data structure is suited for that? F. and the vendor then designs the user interfaces to suit the client’s unique needs. The primary processing logic is programmed. If a certain system in a business is centralized does it mean that the whole business is centralized? Explain your answer. The original master continues to exist. including those that were updated by transactions and those that were not updated. or corrupted by erroneous data. no backup version exist from which to reconstruct the file while sequential file update process produces new physical masters file. a new file can be created from the original master files and the corresponding transaction files. The criteria that influence selection of data structures include the insertion of record into a file. there is no need to keep track of how much an employee has earned every minute of the day and doing this every two weeks is likely sufficient. Yes. the whole business is centralized if a certain system is centralized because resources and data of the company are shared by the management and employees of the company. The new file contains all of the records from the original file. H. updating the record must occur in a place of a destructive update approach that leaves no backup copy of the original master file and only the current value is available to the user. If the current master file become lost. How do backup procedures for files with a direct access structure differ from sequential files? G. How do you consider Microsoft Office Systems? Is it a turnkey. backbone or vendor supported system? Explain your answer. Because only a single valid location exists for each record. (You are encouraged to give practical business cases) system.E. In a direct access structure. This will need sequential structure so as the records will automatically be inserted into the right path. If the current master becomes damaged or corrupted.

then why are they consulted as system users in the system development process? Give a practical example to support your answer. The REA model is based on the premise that business data must not be preformatted or artificially constrained and must reflect the all relevant aspects of the underlying economic events. a cash receipt occurs in exchange for a sale. where cash is received. Accountants as end users must provide a clear picture of their needs to the professionals who design their systems. J. A Possibility of Inconsistent data. and vice versa. The duality relationship can be more complex. REA treats the accounting system as a virtual representation of the actual business. In what scenario does real time processing advantageous over batch processing (Is it transactions that are dependent with one another or transactions that are independent with one another?) Justify your answer.” Explain it by giving a practical example of REA model (which is of course not on the book) L.g. there are no time lags between occurrence and recording compared with batch processing system. but is shared by accounting. the accountant must specify accounting rules and techniques to be used. in the manufacturing process. What are the 3 general problems associated with data redundancy and give a practical example for each. If accountants are viewed as providers of information. Another example customer data exist only once. Examples. internal control requirements. it creates computer objects that directly represent real-world-business objects. The three general problem associated with data redundancy are Wasted Storage Space. it would often involve more than two events. Real time processing system process transactions individually at the moment the event occurs. one event would be "sales"—where goods are given up— and the other would be "cash receipt". marketing. Because records are not grouped into batches. In other words. . Example.More difficult Database Updates.. and special algorithms such as depreciation models. e.I. Autonimous sysytem developments activities distributed throughout the firm can result in each user area reinventing the wheel. For example. and product services users. K. These two events are linked. in the sales process.

or below. What are the 4 levels of activity in the pyramid representing the hierarchy of management? Give at least one person involved in the four levels of organization (e. This person will set in motion the vision.Operations manager. external feedback about level of uncollected customer accounts can be used to adjust the organization's credit-granting policy. Give examples of vertical flow and horizontal flow of information.(horizontal) Frequently.. their minimum allowable levels. this individual also is in charge of either production or marketing for the business. Similarly. this individual is the leader for the operation and has overall responsibility for the financial success of the business. What are the three fundamental task of data management and give a practical example for each task. for assigning keys to a new records and stores them in their proper location in the database. For example. retrieval and deletion. What is feedback? Give a practical example of it and how is it beneficial to the system? The four levels are Top management. storage.M. Retrieval is the task of locating and extracting an existing record from the database for processing. O. storage. operation management and operation personnels. an inventory have fallen to. The operations manager handles external relations with lenders. . community leaders and vendors. Example. N. middle management. strategic plan and goals for the business (vertical). Internal feedback from the information will initiate the inventory ordering process to replenish the inventories. Deletion is the task permanently removing obsolete or redundant records from the database.g. Chief Executive Officer belongs to top management). Feedback is a form of output that is sent back to the system as a source of data. Three fundamental tasks of data management.

S. for example. and to increase their profitability. using it allows service companies to reduce and control their costs in order to make correct pricing and other decisions.time processing that is requires considerable computer networking. Management reporting is called discretionary reporting because the organization can choose what information to report and how to present it. Similarly. A company policy to buy particular items from a single vendor would be reflected by a 1:M cardinality. this policy would be reflected by a 1:M relationship. Q. cardinality is the maximum number of records in one file that are related to a single record in the other file and vice versa. because records are not grouped into batches. Cost accounting encompasses a body of concepts and techniques that support the objectives of both financial accounting and managerial accounting. Activity . R. If instead the organization's policy were to assign a single automobile to one or more persons who share it. Transaction file is called temporary file because it used to change or update data in a master file. the M:M relationship between vendor and inventory implies that the organization buys the same type of products from one or more vendors. there are no time lags between occurrence and recording. . It has become increasingly important for companies whose markets are becoming more competitive.P. What processing requires considerable computer networking? Is it real-time or batch processing? Explain. Why is transaction file called a temporary file? Cardinality is the numeric mapping between entities instances. Why is cost accounting also applicable in service oriented business such as hospitals? Explain. Why is management report considered discretionary reporting? T. each salesperson in the organization is assigned one automobile. It is likely to continue to become more prevalent in the service industry in the future. What is meant by cardinality in E-R diagram? Provide an example based on a case record.Based Costing can be applied in service industries other than those described here. It is real. if we think of entities in the ER diagram as files of records. Since ABC is really about cost management.