CASE ANALYSIS

A Case Analysis Presented to the Faculty of Ateneo de Davao University

In Partial Fulfillment for the Requirements in

Accounting Information System

Submitted by:
Calunsag, Aubrey John
Casinillo, Darene
Chen, May Ann
Cordero, Jessa Kris
Cequiña, Danielle May N.
Demadara, Prize Reina
Doncilla, Katherine Ann
Rivas, Clyde Jade

Submitted to:
Sir John Karlo S. Dalangin, CPA

December 2019
L6-23 The Berridge Company Case Analysis

REQUIREMENTS

1.​ ​Draw a document flowchart for the Berridge Company using the symbols found in Figure 6-7.

2. Could the company eliminate one or more copies of its RSR form? Use your flowchart to explain
why or why or not?

It is illustrated in the flowchart that three copies of RSR forms are prepared by the retail store.
Among those three copies prepared, one is retained in the retail store file for reference and the other two
are sent to the warehouse. Sequentially, this creates three to four numbers of purchase order copies,
purchase requisition forms, receipt report forms and inventory report forms for its own department which
is also sent to other departments.

The scenario above multiplies the use of paper in the current system of the company; and for it to
trim the cost of paperwork, a computerized system can be utilized. One of the advantages of a
computerized system is a smoother flow of communicating orders and receipts. It is both beneficial for
the company and its external parties like its customers and suppliers. Therefore, with the aid of a
computerized system, the company can eliminate one or more copies of RSR form.

3. Do you think that the company creates too many copies of its purchase orders? Why or why not?

Yes, Berridge Company has created too many copies of its purchase orders. Five copies of
purchase orders are sent to the vendor, accounts payable department, inventory control department, and
the warehouse. The last copy, the fifth one, is filed for reference by the purchasing department.

It is unnecessary to produce numerous copies since the process of checking the goods only takes
place when it has already been sent to the company. The goods are then forwarded to the warehouse and
inventory control department after the receiving clerk has thoroughly verified the products.

It is, however, reasonable for the purchasing department to retain a copy of the purchase order for
verification and the issuing of receipt or invoice for the payment of the goods. Further, having fewer
copies helps the company keep track of what has been ordered and from whom to protect the products
from loss and theft. Moreover, producing a lot of purchase order copies serves only as a second
verification process and are considered redundant for the part of the warehouse and inventory control
department, and this can be avoided by reducing the number of purchase orders copies prepared by the
purchasing department. The company does not need to produce a lot of copies since the warehouse
personnel can attach its copy to the receiving department through a receiving report, and the accounts
payable can use the warehouse copy to prepare payment to the vendor.
6-24 Classic Photography Inc. Case Analysis

Requirements

1. Create a systems flowchart for the purchase and payment processes.

2. Comment on the value, if any, that having a systems flowchart describing this process would
have to Jenny.

System Flowchart, according to Romney, shows the relationship among the input, processing, and output
in an information system. Basically, this flowchart is a framework of a complete process, or actions to be
undertaken by an entity, organization, or group of people . In Jenny’s situation, a visual representation
will be of great help to easily identify the series of steps and processes need to be done. This graph would
then serve as an aid to the narrative version of the process, helping the tasks and duties to be organized
and completed, chronologically and accordingly. Moreover, having Jenny or her assistant do the whole
job, may be cumbersome and confusing, hence, having the steps/tasks drawn or illustrated will help in
finishing all the transactions efficiently.

Jenny employed few employees but she smoothly managed their business process. Moreover, system
flowchart is very essential to small businesses because it helps them to trace their daily activities such as
purchasing, ordering, and payments. The flowchart can avoid redundancy or other information which is
unnecessary to company. Furthermore, it also gives support to company to reduce the risks and mishaps.
Thus, system flowchart is considered as an accessory that improves company's organizational structure
more efficiently and effectively.