Chapter 05

Sales and Collections Business Process

True / False Questions

1. Type images can be used to allow process information to be summarized by category.

True False

2. BPMN models can describe the collaboration between two organizations using pools.

True False

3. A BPMN process flow can start in one pool and end in the collaborating pool.

True False

4. In a collaboration model using BPMN, the interaction between participants is called orchestration.

True False

5. A pool in a BPMN model does not actually have to display any activities.

True False

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6. An intermediate error event can be used to model process exceptions.

True False

7. Application controls limit who can change records in a system.

True False

8. Segregation of duties is an example of a COSO control activity.

True False

9. Business rules are unrelated to COSO control activities, although they serve an important purpose.

True False

10. One-to-many relationships are implemented by posting a foreign key.

True False

11. Many-to-many relationships are implemented by posting a foreign key.

True False

12. One-to-one relationships are implemented by creating a linking table.

True False

Multiple Choice Questions

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13. Which of the following best describes the purpose of a BPMN collapsed sub-process?

A. Show the interchange between two pools.

B. Depict the sequence of activities in one pool.

C. Contain a series of activities that are hidden from view.

D. Illustrate process flow when an exception occurs.

14. Which of the following best describes the purpose of an intermediate error event?

A. Show the interchange between two pools.

B. Depict the sequence of activities in one pool.

C. Contain a series of activities that are hidden from view.

D. Illustrate process flow when an exception occurs.

15. Which of the following best describes the difference between access controls and application

controls?

A. Access controls limit who can change records and application controls provide an audit trail of
any changes.

B. Access controls implement business rules and application controls do not.

C. Access controls are "prohibited" business rules and application controls are "allowed" business
rules.

D. There is no difference between access and application controls.

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16. Review the following diagram. Which answer provides the best interpretation of the multiplicities

for the association between the Quote class and the Order class?

A. Quotes and orders are entered into the system at the same time.

B. Each quote may result in many future Orders.

C. One Sunset Partner both prepares quotes and records orders.

D. Each order must result from a prior quote.

17. Refer to the following diagram. Which of the following answers provides the best interpretation of

the multiplicities for the association between the Order class and the Products class?

A. Each order must specify the same products as the previous quote.

B. Each product has been ordered at least once.

C. An order does not have to include a product.

D. An order may include many products.

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18. Refer to the following diagram. Which of the following answers provides the best interpretation of

the multiplicities for the association between the Cash Receipt and Cash classes?

A. Each cash receipt is deposited into one bank account.

B. Each order increases accounts receivable.

C. The company only has one bank account.

D. Some cash receipts are not deposited into a bank account.

19. Refer to the following diagram. Which of the following answers provides the best interpretation of

the multiplicities for the association between the Orders and Cash Receipt classes?

A. Some customers pay for their orders in advance.

B. Some orders result in several payments from the customers.

C. Each cash receipt pays for at least one order, but it could pay for many orders.

D. Each cash receipt pays for a minimum of 0 orders and a maximum of 1 order.

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20. Refer to the following diagram. Which of the following answers does not provide a valid

interpretation of the multiplicities for the association between the Employees and the Product
Categories classes?

A. Employees are assigned to manage product categories.

B. Each product category has one manager.

C. Each product category can have no managers or multiple managers.

D. Each employee can manage only one product category.

21. Refer to the following diagram. Which of the following answers does not provide a valid

interpretation of the multiplicities for the association between the Employees and the Sales
classes?

A. Only one employee participates in each sale.

B. Several employees participate in each sale.

C. Some employees do not participate in sales.

D. Some employees participate in several sales.

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22. Refer to the following diagram. Which of the following answers does not provide a valid

interpretation of the multiplicities for the association between the Inventory and the Product
Category classes?

A. Every inventory item is in at least one product category.

B. Every product category includes at least one inventory item.

C. Some product categories do not include inventory items.

D. Every inventory item is in at most one product category.

Essay Questions

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23. La Jolla Management Company (LJMC) manages several apartment complexes and earns revenues

by renting out the apartments in those complexes. LJMC assigns an agent/manager (employee) to
each complex (one manager can manage several complexes) to handle day-to-day operations,
such as maintaining the property, advertising, and signing rental contracts. This case describes the

rental (sales) process.

Complexes and apartments. LJMC has acquired fifteen and built several more new apartment
complexes over the last two years. It identifies complexes by unique name and apartments by the
combination of the complex name and apartment#. LJMC categorizes each apartment according
to the number of bedrooms and bathrooms, as well as other factors. There are more than 20

apartment categories at present, each identified by unique category #. Since each complex

presents a unique set of luxury appointments and amenities, LJMC determines the standard

monthly rental fee by considering both the apartment category and complex, for example 2
bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado Arms
complex (where there is no view and the complex is close to a freeway) but the same category

apartments rent for $2850 per month in the La Jolla Cove complex (where there is a view of the
ocean from most apartments in the complex).

Rentals. LJMC managers negotiate rental contracts with tenants. Rental contract duration is 12
months from the designated apartment availability date (the date the apartment is available to the
tenants). Although there is a standard monthly rental fee for each apartment in each building,

agents may negotiate higher or lower rents if they see the need to do so. It is important to have a

full record of the actual rent for all apartments. When there is more than one tenant per
apartment, LJMC requires every tenant to sign the rental contract. LJMC assigns a unique tenant

ID# to each tenant and issues them ID cards to control access.

Cash Receipts. LJMC collects the first month rent in advance from the tenants when the rental

contract is signed and then collects payments monthly for the life of the contract. Assume that
LJMC does not receive cash from other sources.

Other Information. Agents, resources, and type images may be recorded in the database before
they are linked to other entities. LJMC tracks all its employees in one employee class.

REQUIRED: 1) use the information above and the list of attributes below to draw a UML class

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 diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables

necessary to support La Jolla Management Company's process using all the attributes. Name each
table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the
following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the

following list of attributes (remember that there should be no entities without attributes).

Attributes

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24. Pacific Green Company (PGC) provides landscaping services to individual and corporate customers

in southern California. Heather F originally founded PGC as a lawn mowing service while she
attended graduate school. It became so successful that she delayed her teaching career to
concentrate on building the company. This case describes PGC's landscaping jobs (sales) process.

PGC maintains an inventory of trucks of all sizes to support various landscaping requirements (the

acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle
identification numbers (VINs) and keeps meticulous records on each truck. For example, they track
the mileage for each truck on each landscaping job. Additionally, they track the maintenance
history for each truck (maintenance is outside the scope of this case). Each type of truck has a

different use and hauling capacity, but each truck in a particular truck type has the same use and

hauling capacity.

PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large trees,
so they can address almost any landscaping requirement on short notice. Since the common name
of many plants vary by region, PGC tracks its plant inventory by scientific names (i.e., the Latin

names). To manage the plant inventory and ensure that the best plants are applied to job

conditions, Heather categorizes all plants by plant type.

PGC performs landscaping jobs for individual and corporate customers. Before performing any

job, Heather prepares a quote describing the scope of service and the price. Sometimes, the
customer will elect to perform pieces of the overall quote, so one quote may result in several
landscaping jobs. The landscaping quote presents a price estimate based on the types of plants

and types of trucks required and the overall time involved. Each quote involves at least one truck
type and one plant type.

PGC tracks landscaping jobs by job #. Each landscaping job may require many plants and several
trucks. PGC typically assigns multiple employees to each job as follows: (1) one supervisor, (2) one

truck drivers per truck, and (3) landscaping laborers. PGC specifically tracks which employees
perform which of these functions on specific jobs, since they pay employees according to the work
performed on each landscaping job. Customers must pay a 10% deposit when the job begins,
another 50% when the job is half completed, and the final 40% within two weeks after the job is
fully completed. Customer payments are made by check or credit card and processed for daily

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 deposit by a PGC cashier.

PGC keeps all employee information together (your model should show one Employee class). They
track each employee's qualifications according to category: purchasing agent, cashier, landscaping
laborer, truck driver, supervisor, etc. An employee is considered qualified when he or she reaches
the number of training hours required for that category. However, each employee can hold

qualifications for several categories, for example an employee qualified as a purchasing agent
could also be qualified as a truck driver.

You may assume that all agent, resource, and type image information is entered into the database
before any process activity takes place. You may also assume that PGC only receives cash from
landscaping jobs.

REQUIRED: 1) use the information above and the list of attributes below to draw a UML class
diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables

necessary to support PGC's process using all the attributes. Name each table and clearly identify
primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES,
EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember

that there should be no entities without attributes).

Attributes:

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 5-12
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25. Pacific Green Company (PGC) provides landscaping services to individual and corporate customers

in southern California. Heather F originally founded PGC as a lawn mowing service while she
attended graduate school. It became so successful that she delayed her teaching career to
concentrate on building the company. This case describes PGC's landscaping jobs (sales) process.

After the customer contacts PGC about a landscaping project, a PGC manager prepares a quote

describing the scope of service and the price. After reviewing the quote and comparing PGC's
quote to other landscapers, customers may 1) accept the quote, 2) notify PGC that they did not get
the job, or 3) request that the quote be modified. If the customer accepts the quote, they
sometimes request that the project be completed in a series of jobs. Each job is handled

separately. Jobs are then performed according to an agreed upon schedule until the overall

project is complete.

Each landscaping job generally proceeds as follows after the contract for the job is signed. The
PGC manager responsible for the quote assigns the trucks and selects the plants for the job. Then,
the manager assigns the job team: the job supervisor, truck drivers, and landscaping laborers, to

the job. At that point, the PGC job team performs the job. Customers must pay a 10% deposit

when the job begins (that payment is made when they sign the job contract) and the final 90% is

due when the job is completed. Customer payments are made by check or credit card and
processed for daily deposit by a PGC cashier. After PGC starts the job, the cashier bills the
customer for remaining 90% due. Customers either make the final payment or demand rework to

bring the job up to the contract requirements. When the job is completed satisfactorily, the

customers then pay the amount due. Occasionally, some deadbeat customers withhold further
payment for unknown reasons. In that case, PGC either refers the debt to a collection agency or

writes off the remainder of the amount due. Of course, PGC does not perform the remainder of
the jobs in the project when the customer fails to pay.

REQUIRED: Using the description above, prepare a BPMN activity diagram with pools (customer
and PGC) and swimlanes that accurately depicts the PGC sales process.

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 Chapter 05 Sales and Collections Business Process Answer Key

True / False Questions

1. Type images can be used to allow process information to be summarized by category.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

2. BPMN models can describe the collaboration between two organizations using pools.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

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3. A BPMN process flow can start in one pool and end in the collaborating pool.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

4. In a collaboration model using BPMN, the interaction between participants is called

orchestration.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

5. A pool in a BPMN model does not actually have to display any activities.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Understand and apply different activity modeling options.

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 Source: Original
Topic: Sales and Collections

6. An intermediate error event can be used to model process exceptions.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

7. Application controls limit who can change records in a system.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Develop business rules to implement controls for the sales and collection process.
Source: Original
Topic: Sales and Collections

8. Segregation of duties is an example of a COSO control activity.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember

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 Difficulty: 1 Easy
Learning Objective: 05-04 Develop business rules to implement controls for the sales and collection process.
Source: Original
Topic: Sales and Collections

9. Business rules are unrelated to COSO control activities, although they serve an important
purpose.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Develop business rules to implement controls for the sales and collection process.
Source: Original
Topic: Sales and Collections

10. One-to-many relationships are implemented by posting a foreign key.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-06 Use multiplicities to implement foreign keys in relational tables.
Source: Original
Topic: Sales and Collections

11. Many-to-many relationships are implemented by posting a foreign key.

FALSE

AACSB: Analytic

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McGraw-Hill Education.
 AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-06 Use multiplicities to implement foreign keys in relational tables.
Source: Original
Topic: Sales and Collections

12. One-to-one relationships are implemented by creating a linking table.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-06 Use multiplicities to implement foreign keys in relational tables.
Source: Original
Topic: Sales and Collections

Multiple Choice Questions

13. Which of the following best describes the purpose of a BPMN collapsed sub-process?

A. Show the interchange between two pools.

B. Depict the sequence of activities in one pool.

C. Contain a series of activities that are hidden from view.

D. Illustrate process flow when an exception occurs.

AACSB: Analytic
AICPA BB: Leveraging Technology

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McGraw-Hill Education.
 AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Develop an activity model of the sales and collection process.
Source: Original
Topic: Sales and Collections

14. Which of the following best describes the purpose of an intermediate error event?

A. Show the interchange between two pools.

B. Depict the sequence of activities in one pool.

C. Contain a series of activities that are hidden from view.

D. Illustrate process flow when an exception occurs.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Develop an activity model of the sales and collection process.
Source: Original
Topic: Sales and Collections

15. Which of the following best describes the difference between access controls and application
controls?

A. Access controls limit who can change records and application controls provide an audit trail

of any changes.

B. Access controls implement business rules and application controls do not.

C. Access controls are "prohibited" business rules and application controls are "allowed"

business rules.

D. There is no difference between access and application controls.

AACSB: Analytic

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McGraw-Hill Education.
 AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

16. Review the following diagram. Which answer provides the best interpretation of the

multiplicities for the association between the Quote class and the Order class?

A. Quotes and orders are entered into the system at the same time.

B. Each quote may result in many future Orders.

C. One Sunset Partner both prepares quotes and records orders.

D. Each order must result from a prior quote.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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17. Refer to the following diagram. Which of the following answers provides the best interpretation
of the multiplicities for the association between the Order class and the Products class?

A. Each order must specify the same products as the previous quote.

B. Each product has been ordered at least once.

C. An order does not have to include a product.

D. An order may include many products.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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18. Refer to the following diagram. Which of the following answers provides the best interpretation
of the multiplicities for the association between the Cash Receipt and Cash classes?

A. Each cash receipt is deposited into one bank account.

B. Each order increases accounts receivable.

C. The company only has one bank account.

D. Some cash receipts are not deposited into a bank account.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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19. Refer to the following diagram. Which of the following answers provides the best interpretation
of the multiplicities for the association between the Orders and Cash Receipt classes?

A. Some customers pay for their orders in advance.

B. Some orders result in several payments from the customers.

C. Each cash receipt pays for at least one order, but it could pay for many orders.

D. Each cash receipt pays for a minimum of 0 orders and a maximum of 1 order.

AICPA BB: Leveraging Technology

AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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20. Refer to the following diagram. Which of the following answers does not provide a valid
interpretation of the multiplicities for the association between the Employees and the Product
Categories classes?

A. Employees are assigned to manage product categories.

B. Each product category has one manager.

kj x

C. Each product category can have no managers or multiple managers.

D. Each employee can manage only one product category.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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21. Refer to the following diagram. Which of the following answers does not provide a valid
interpretation of the multiplicities for the association between the Employees and the Sales
classes?

A. Only one employee participates in each sale.

B. Several employees participate in each sale.

C. Some employees do not participate in sales.

D. Some employees participate in several sales.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

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22. Refer to the following diagram. Which of the following answers does not provide a valid
interpretation of the multiplicities for the association between the Inventory and the Product
Category classes?

A. Every inventory item is in at least one product category.

B. Every product category includes at least one inventory item.

C. Some product categories do not include inventory items.

D. Every inventory item is in at most one product category.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

Essay Questions

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23. La Jolla Management Company (LJMC) manages several apartment complexes and earns

revenues by renting out the apartments in those complexes. LJMC assigns an agent/manager
(employee) to each complex (one manager can manage several complexes) to handle day-to-
day operations, such as maintaining the property, advertising, and signing rental contracts. This

case describes the rental (sales) process.

Complexes and apartments. LJMC has acquired fifteen and built several more new apartment
complexes over the last two years. It identifies complexes by unique name and apartments by
the combination of the complex name and apartment#. LJMC categorizes each apartment
according to the number of bedrooms and bathrooms, as well as other factors. There are more

than 20 apartment categories at present, each identified by unique category #. Since each

complex presents a unique set of luxury appointments and amenities, LJMC determines the

standard monthly rental fee by considering both the apartment category and complex, for
example 2 bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado
Arms complex (where there is no view and the complex is close to a freeway) but the same

category apartments rent for $2850 per month in the La Jolla Cove complex (where there is a
view of the ocean from most apartments in the complex).

Rentals. LJMC managers negotiate rental contracts with tenants. Rental contract duration is 12
months from the designated apartment availability date (the date the apartment is available to
the tenants). Although there is a standard monthly rental fee for each apartment in each

building, agents may negotiate higher or lower rents if they see the need to do so. It is

important to have a full record of the actual rent for all apartments. When there is more than
one tenant per apartment, LJMC requires every tenant to sign the rental contract. LJMC assigns

a unique tenant ID# to each tenant and issues them ID cards to control access.

Cash Receipts. LJMC collects the first month rent in advance from the tenants when the rental

contract is signed and then collects payments monthly for the life of the contract. Assume that
LJMC does not receive cash from other sources.

Other Information. Agents, resources, and type images may be recorded in the database before
they are linked to other entities. LJMC tracks all its employees in one employee class.

REQUIRED: 1) use the information above and the list of attributes below to draw a UML class

5-27
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McGraw-Hill Education.
 diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables

necessary to support La Jolla Management Company's process using all the attributes. Name
each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in
the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the

following list of attributes (remember that there should be no entities without attributes).

Attributes

Diagram:

Table listing:

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 Resources
Apartment Complex = apartment complex name (PK), apartment complex address, date
constructed, total square footage, count of apartments in this complex, employee# (FK)
(agent/manager)
Apartments = complex name + apartment# (PK), apartment square footage, count of rooms in

apartment, apartment category (FK)

Cash = bank account# (PK), bank account balance)

Events
Rental Contract = rental contract# (PK), actual monthly rent, rental contract date, employee #
(FK), complex address + apt # (FK)
Cash Receipt = cash receipt# (PK), cash receipt date, bank account# (FK), employee# (FK),

tenant ID# (FK), rental contract# (FK)

Agents
Employee = employee# (PK), employee name, employee monthly salary
Tenant = tenant ID# (PK), tenant name, tenant credit rating

Type Images
Apartment Category = apartment category# (PK), number of bedrooms for apartments in this

category, number of bathrooms for apartments in this category, count of available apartments
in this category

Linking
Rental Contract-Tenants = rental contract# + tenant# (PK)
Apartment Category - Complex = apartment category# + complex name (PK), standard

monthly rent)

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard

5-29
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McGraw-Hill Education.
 Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

24. Pacific Green Company (PGC) provides landscaping services to individual and corporate

customers in southern California. Heather F originally founded PGC as a lawn mowing service
while she attended graduate school. It became so successful that she delayed her teaching
career to concentrate on building the company. This case describes PGC's landscaping jobs
(sales) process.

PGC maintains an inventory of trucks of all sizes to support various landscaping requirements
(the acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle

identification numbers (VINs) and keeps meticulous records on each truck. For example, they
track the mileage for each truck on each landscaping job. Additionally, they track the

maintenance history for each truck (maintenance is outside the scope of this case). Each type of
truck has a different use and hauling capacity, but each truck in a particular truck type has the

same use and hauling capacity.

PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large
trees, so they can address almost any landscaping requirement on short notice. Since the

common name of many plants vary by region, PGC tracks its plant inventory by scientific names
(i.e., the Latin names). To manage the plant inventory and ensure that the best plants are

applied to job conditions, Heather categorizes all plants by plant type.

PGC performs landscaping jobs for individual and corporate customers. Before performing any
job, Heather prepares a quote describing the scope of service and the price. Sometimes, the

customer will elect to perform pieces of the overall quote, so one quote may result in several
landscaping jobs. The landscaping quote presents a price estimate based on the types of plants

and types of trucks required and the overall time involved. Each quote involves at least one
truck type and one plant type.

PGC tracks landscaping jobs by job #. Each landscaping job may require many plants and

several trucks. PGC typically assigns multiple employees to each job as follows: (1) one
supervisor, (2) one truck drivers per truck, and (3) landscaping laborers. PGC specifically tracks

5-30
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 which employees perform which of these functions on specific jobs, since they pay employees

according to the work performed on each landscaping job. Customers must pay a 10% deposit
when the job begins, another 50% when the job is half completed, and the final 40% within two
weeks after the job is fully completed. Customer payments are made by check or credit card

and processed for daily deposit by a PGC cashier.

PGC keeps all employee information together (your model should show one Employee class).
They track each employee's qualifications according to category: purchasing agent, cashier,
landscaping laborer, truck driver, supervisor, etc. An employee is considered qualified when he
or she reaches the number of training hours required for that category. However, each

employee can hold qualifications for several categories, for example an employee qualified as a

purchasing agent could also be qualified as a truck driver.

You may assume that all agent, resource, and type image information is entered into the
database before any process activity takes place. You may also assume that PGC only receives
cash from landscaping jobs.

REQUIRED: 1) use the information above and the list of attributes below to draw a UML class

diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables
necessary to support PGC's process using all the attributes. Name each table and clearly

identify primary keys with PK and foreign keys with FK. List your tables in the following order:
RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of
attributes (remember that there should be no entities without attributes).

Attributes:

5-31
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McGraw-Hill Education.
 Diagram:

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McGraw-Hill Education.
 Table listing:

Resources
Cash = cash account # (PK), cash account balance
Plants = plant scientific name (PK), plant common name, quantity on hand, plant category
name (FK)

Trucks = truck VIN (PK), truck make, truck acquired year, truck mileage to date, truck type (FK)

Events

Cash receipt = cash receipt # (PK), cash receipt date, cash receipt amount, cash account # (FK)
employee # (FK), customer # (FK), landscaping job # (FK)
Landscaping job = landscaping job # (PK), start date, price, customer#, landscaping quote #
(FK), employee # (supervisor) (FK)

Landscaping quote = landscaping quote # (PK), quote date, quote expiration date, quote
amount, customer # (FK), employee # (FK)

Agents
Employee = employee # (PK), employee name, employee hire date

Customer = customer # (PK), customer name, YTD sales $ to this customer

Type Images

Employee type = employee type (PK), number of training hours to qualify, number of
employees qualified
Plant category = plant category name (PK), expected maximum size of plants in this category,
light required for plants in this category, average cost of plants in this category
Truck type = truck type (PK), truck type use, truck type hauling capacity, average daily cost to

use trucks of this type

Linking Tables

Quote - Plant Categories = landscaping quote # + plant category name (PK), number of plants
in this category bid on this quote

Quote - Truck Types = landscaping quote # + truck type (PK), number of trucks of this type bid
on this quote
Job - Trucks = landscaping job # + truck VIN (PK), hours this truck used on this job

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 Job - Plants = landscaping job # + plant scientific name (PK), count of this plant used on this

job
Truck Drivers = landscaping job # + employee # (PK), hours this truck driver worked on this job
Landscape Laborers = landscaping job # + employee # (PK), hours this landscape laborer

worked on this job

Employee - Employee Types = employee # + employee type (PK), date this employee qualified
for this type

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-05 Develop UML Class Diagrams for the sales and collection process.
Source: Original
Topic: Sales and Collections

5-34
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McGraw-Hill Education.
25. Pacific Green Company (PGC) provides landscaping services to individual and corporate
customers in southern California. Heather F originally founded PGC as a lawn mowing service
while she attended graduate school. It became so successful that she delayed her teaching

career to concentrate on building the company. This case describes PGC's landscaping jobs
(sales) process.

After the customer contacts PGC about a landscaping project, a PGC manager prepares a
quote describing the scope of service and the price. After reviewing the quote and comparing
PGC's quote to other landscapers, customers may 1) accept the quote, 2) notify PGC that they

did not get the job, or 3) request that the quote be modified. If the customer accepts the quote,
they sometimes request that the project be completed in a series of jobs. Each job is handled
separately. Jobs are then performed according to an agreed upon schedule until the overall

project is complete.

Each landscaping job generally proceeds as follows after the contract for the job is signed. The

PGC manager responsible for the quote assigns the trucks and selects the plants for the job.
Then, the manager assigns the job team: the job supervisor, truck drivers, and landscaping

laborers, to the job. At that point, the PGC job team performs the job. Customers must pay a
10% deposit when the job begins (that payment is made when they sign the job contract) and
the final 90% is due when the job is completed. Customer payments are made by check or

credit card and processed for daily deposit by a PGC cashier. After PGC starts the job, the
cashier bills the customer for remaining 90% due. Customers either make the final payment or
demand rework to bring the job up to the contract requirements. When the job is completed

satisfactorily, the customers then pay the amount due. Occasionally, some deadbeat customers
withhold further payment for unknown reasons. In that case, PGC either refers the debt to a
collection agency or writes off the remainder of the amount due. Of course, PGC does not

perform the remainder of the jobs in the project when the customer fails to pay.

REQUIRED: Using the description above, prepare a BPMN activity diagram with pools (customer
and PGC) and swimlanes that accurately depicts the PGC sales process.

The activity is a slightly more complicated version of the diagrams shown for Sunset in chapter

5-35
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 6. Here is a simple activity diagram with the basic steps.

The use of pools and addition of different paths make the solution more complicated. The
solution should look something like this, although a variety of solutions are possible.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Understand and apply different activity modeling options.
Source: Original
Topic: Sales and Collections

5-36
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