Group Assignment of Accounting Information System

“Fizzy Cola Bottling Company”

by

AnggunDinanbana 1810533009

NettaHandikaLeswari 1810531016

Nabila Haifa Andrianti 1810533008

Tiara Wahyuni 1810533002

International Accounting

Economics Faculty

Andalas University

2020

1. Prepare a statement of objectives for an accounting information system relevant to

FCBCG's requirements.
In this case have 3 objectives for an accounting information system:
 a). Work Flow
In this case there was work flow that give information how the production, sales
department do. The information or data from one department will be expose to the
other company, so they can make good decision for the next period.
b). Reporting
the company do the reporting when the supply on hand or do the delivery and
Production cost reports are prepared on a monthly basis for the mixing bottling, and
packing operations.
c). Track Spending and Income
The primary objective of an accounting system is to help you track the income and
spending of your company. Comparing the two gives you a snapshot of the company's
profit or losses, although there are often other factors the determine whether your
company i successful.

2. Does FCBCG's strongly centralized management style affect the type of accounting
system the company needs?
Centralized organizational structures rely on one individual to make decisions and
provide direction for the company. but centralized don't give any affect to accounting
system, because the centralized only for make decision for the company.
Would it make any difference if middle managers at the Columbus headquarters?
Distribution center managers, had more autonomy?
If distribution center had more autonomy, it will make the sales not control yet.
Because distribution center can send more product to the area that they want without
any survey or discussion with sales manager . But the impact if the product not sold
out or expired because take a long time and there is no customers to buy it will take by
the sales manager. Sales manager doesn't have responsibility to bearing the situation.

3. What are the accounting implications, if any, of the just-in-time inventory and flexible-
manufacturing concepts?
Just In time
If in this company use just in time inventory , the supply for small seller or the seller
that buy product when hey want. The seller can’t get the product at that time. Its
makes reducing in selling product.
But , just in time system can decrease the finished good inventory on the warehouse
and decrease in transportation cost , because the supplier will not supplies or raw
materials everyday
So , JIT will impact to transportation cost, warehouse cost, labor cost, sales income
Flexible Manufacturing Concept
 Flexible Manufacturing concept can be used in this company , because its so flexible
in produce types of product or order processing. But this concept is costing , because
need the new machine with high ability, and good computer network. Its easily to
controlling by computerized system.
So, Flexible Manufacturing Concept will impact to manufacturing cost, quality, labor
cost, maintenance cost, production Rate, and cost per unit.

4. Prepare an organization chart showing the management structure of Fizzy Cola

Bottling Company of Georgia. Make up names for any individuals who are not referred to
by name in the case and include other positions that you feel would be needed either at the
corporate headquarters or at a sample distribution center. There is no need to include all of
the distribution centers.

Board of
Director
Ms. Molly

President
Ms. Molly

VP VP
Operations Marketing VPFinance
Rod L. Bunion Alice T. Hayes Alan C. W.

Manager
Manager
Promotion
Purchasing Controller
Ms. Molly Ms. Molly
Ms. Molly
Manager Manager Trade
Production Marketing
Treasurer
Ms. Molly Ms. Molly
Ms. Molly
Manager Public
Manager Sales
Relations Internal
Auditor
Ms. Molly Ms. Molly
Ms. Molly
Manager
Shipping
Rod L. Bunion
5. Prepare in good form flowchart of the sales order processing, production, and cost
accounting systems used by FCBCG. Be sure to properly represent the various types of
paperwork, file media, processing operations, and reports involved.

Sales Order Processing

In this stage we must pay attention to what departments are in it. Starting from the
sales department that serves every customer needs. Here the customer will make an
order that will be handled by the workers in this department. They will record each
order and give a invoices to the customer. The memorandum usually contains several
attachments and will be given to the production department. In the production order
section the customer will be checked and recorded in its entirety. Then some
attachments of the memorandum will be directed to the warehouse to prepare any
items ordered. And finally, shipping will record all data and deliver the goods to the
customer.
Production
 In the production phase, the process of creating a product is clearly described to be
ready for sale. The product will be made with several specifications. Then the
packaging will be made as attractive as possible. Finally, items will be sold to be
given to customers.

Cost Accounting

Cost accounting will record every cost involved in the production process. The recording
will be assisted by the accountant. After that at the end of the period there will be an
analysis of product improvements.

6. Evaluate the adequacy of the existing computer system and processing technology.
 The present accounting system works reasonably well, although there is increasing
concern that it has not kept pace with the advances made in production and
materials-handling technology. The batch processing system based on conventional
files is cumbersome and slow, and communication with the distribution" centers is
primitive. The manager of the computer center has recommended that a new
computer system be installed and that new software be acquired that could interface
witha data base management system.
There is another concern with regard to the standard cost system. With the large-
scale automation of the company's production plant, the continued relevance of the
standard cost system has been called into question more than once.

Most organizations produce information only if its value exceeds its cost. However,
there are twosituations where information may be produced even if its cost exceeds
its value.a.
 
It is often difficult to estimate accurately the value of information and the cost of
producingit. Therefore, organizations may produce information that they expect
will produce benefitsin excess of its costs, only to be disappointed after the fact. b.
 
Production of the information may be mandated by either a government agency or
a privateorganization. Examples include the tax reports required by the IRS and
disclosurerequirements for financial reporting.

7. Comment on the extent to which the accounting information system (aside from its
computer technology already discussed in Exercise 5) has kept pace with improvements in
the production and materials handling systems. Is the accounting system seriously
deficient?

Yes, it is.

A significant deficiency is a deficiency, or a combination of deficiencies, in

internal control over financial reporting that is less severe than a material
weakness, yet important enough to merit attention by those responsible for
oversight of the company's financial reporting.
 A control deficiency exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis.
The manager of the computer center has recommended that a new computer system
be installed and that new software be acquired that could interface with a data base
management system. Control is required on a minute-by-minute basis. With the
 large-scale automation of the company's production plant, the continued relevance
of the standard cost system recommendations for an Improved System.
The firm would be asked to develop an overall plan for the accounting system that
would address the various concerns mentioned earlier; to evaluate the existing
system; and to make appropriate recommend actions for an improved system. Some
improvements might be relatively minor, such as providing additional management
reports. Others might be more radical, such as replacing the present computer
hardware and software with more modern technologies.

8. Prepare an overall strategy for making FCBCG's accounting information system more
responsive to the company's needs.
To prepare all, the strategy for making FCBCG’S accounting information system more
responsive to the company’s needs with increasing concern that it has not kept pace
with the advances made in production and materials-handling technology. The batch
processing system based on conventional files is cumbersome and slow, and
communication with the distribution" centers is primitive. The manager of the
computer center has recommended that a new computer system be installed and that
new software be acquired that could interface with a data base management
system.There is another concern with regard to the standard cost system. With the
large-scale automation of the company's production plant, the continued relevance of
the standard cost system has been called into question more than once. Control is
required on a minute-by-minute basis, and variance reports, which may not be
available until several weeks after something goes wrong, are obviously useless. One
of the external auditors inform the controller that many firms had abandoned standard
costing systems after their factories had been automated.
The another strategies to make the company have the best accounting information
system with; to evaluate the existing system; and to make appropriate recommend
actions for an improved system. Some improvements might be relatively minor, such
as providing additional management reports. Others might be more radical, such as
replacing the present computer hardware and software with more modern
technologies.

10. You agree with the computer-center manager that the present conventional file system
should be replaced with a relational data base management system. In order to
implement such a system, the present files are replaced by suitable tables. These tables
must be concise, properly keyed, and free from redundancy.

because in RDBMS :
  Sublanguages, Relational DBMS (RDBMS) including Data Definition
Language (DDL) for establishing database structures, Data Control Language
(DCL) for establishing security / access control, and Data Manipulation
Language (DML) for doubt and data updating,
 Interface drivers, these drives are library codes that provide methods for
preparing statements, executing statements, fetching results and so on.
Example: ODBC, JBDC, MySQL / PHP, Firebird / Python.
 SQL engine, this component defines and executes DDL, DCL and DML
statements (including three main components (compiler, optimizer, and
executor),
 Transaction engine, ensuring that multiple SQL statements succeed or fail as a
group, based on the diktat application,
 Relational engines, relational objects such as tables, indexes, and referential
integrity constraints have been implemented on this component,
 Storage engine, this component stores and retrieves data from the second
storage, as well as managing transactions that occur and the entry, backup and
recovery

Take the file specifications presented in Exhibits 1-3 draw E-R Model (diagram)
and design a set of relational data base tables.

Sales Master File Master Production File

Type A Type B Type A Type B

1.Requested delivery date 1.Product no. 1.Production order no. 1.Production no.

2.Sales order no.(Primary 2.Quantity 2.Sales order no. 2.Description

Key)
3.Unit of measure 3.Production order date 3.Material unit of
3.Prevrelated sales order measure
no. 4.Requested delivery
date 4.Syrup/conc. material
4.Next related sales order no.
no.
5.Syrup/conc. quantity
5.Customer no.

Customer Sales
Inventory
Order

RE DIAGRAM Processing
Order

Customer Sales
Shipping
Order

11. In order to further reduce inventory levels and improve the timing of deliveries, an
electronic data interchange (EDI) system could be implemented, providing on-line
communications with suppliers. To order a raw material, a designated employee would
key in the supplier's code number and the catalog number and quantity of the material
needed. An electronic purchase order would then be transmitted to the supplier. Rod
Bunion has read about this concept in a trade journal, but is not sure whether it would
be worthwhile for FCBCG. Investigate the feasibility of an EDI system and write a memo
to Mr. Bunion, detailing both its positive and negative features. Conclude with a
recommendation to proceed or not to proceed with the design of such a system.
 EDI (Electronic Data Interchange) is one method of business exchange that refers to
a highly commercial business field by using a standard format that has been
determined and mutually agreed upon by most existing organizations.
By send a memo to Mr. Bunion about the difference, advantages and
disadvantages between using the EDI system and manual system. So Mr. Bunion
will consider that company to choose EDI system.

Advantages

• The new Revenue Stream

• Increase market (exposure)

• Lowering operational costs

• Shortening time, automatic

• Reducing information that expands data

• Improve supplier management

• Widen millionaires (global reach)

• Increase customer loyalty (customer service)

• Increase the value chain

Disadvantages

•Expensive

•Various Standard

•Limit for small business

•Data Error or virusses