Fizzy Cola Bottling Company Case

Group Assignment -
Accounting Information
System

- AISYAH MAHMUD (1910533016)

- DINDA PUTRI NOVANTI (1910533004)
- MIFTAHUL JANNAH (1910533028)
- MUTIARA IZZATI DIVA (1910533027)
- NURUL FADHILLAH (1910533005)
QUESTION 1

PREPARE A STATEMENT OF OBJECTIVES FOR AN

ACCOUNTING INFORMATION SYSTEM RELEVANT
TO FCBCG'S REQUIREMENTS
ANSWER :
The existing accounting information system on the proposed FCBCG to serve the
needs of the whole organization. The computer system supports multitasking,
operating in a batch mode. A printer terminal serves as the system console, and
eight interactive terminals provide for online data entry and file maintenance. Two
60-MB hard disk drives and a 1,600 b.p.i. (bits per inch) tape drive provide for
secondary and tertiary data storage. Communication between the distribution
centers and Columbus is restricted to remote job entry and very limited remote
output that can be accommodated on teletype machines. Each distribution center
has two teletype machines which communicate with the mainframe through
multiplexing modems and the telephone lines.
 QUESTION 2
DOES FCBCG'S STRONGLY CENTRALIZED MANAGEMENT
STYLE AFFECT THE TYPE OF ACCOUNTING SYSTEM THE
COMPANY NEEDS? WOULD IT MAKE ANY DIFFERENCE IF
(A) MIDDLE MANAGERS AT THE COLUMBUS
HEADQUARTERS?
(B) DISTRIBUTION-CENTER MANAGERS, HAD MORE
AUTONOMY?
ANSWER :
The management style of FC BCG does not affect the type of the company's accounting
system because centralized organizational structures do not give any effect to
accounting system because the centralized is only used for making decisions for the
company. If distribution center managers had more autonomy, it will make the sales is
un-controlled. Because distribution center can send more product to the area that they
want without any survey or discussion with sales manager, Sales manager doesn't have
responsibility to bear the situation. Managers at Columbus headquarters are responsible
for purchasing, production, sales, and shipping, and managers of local distribution
centers nominally have autonomy in their area of responsibility

• Middle manager at Columbus headquarters : who are in charge of purchasing,

production, sales, and shipping. (a)
• Distribution-center managers : have autonomy in their area of responsibility. However,
their autonomy was largely ceremonial and top-level management threatened them. (b)
QUESTION 3

WHAT ARE THE ACCOUNTING IMPLICATIONS, IF

ANY, OF THE JUST-IN-TIME INVENTORY AND
FLEXIBLEMANUFACTURING CONCEPTS?
ANSWER :
a. Accounting supports the movement towards JIT manufacturing by monitoring,
identifying and communicating the sources of delays, errors and waste in the
manufacturing system to decision makers. The basic concept of JIT in the
production process or fabrication manufacturing system is in principle the
factory only produces the types of goods requested, the amount needed, when
needed. There are four basic concepts in implementing JIT, namely : 
a. JIT production
b. Autonomy 
c. Flexible labor 
d. Creative thinking
ANSWER :
b. Accounting is one of the important information subsystems where the impact of
FMS is greatest. This is because, in most organizations, the accounting
information system measures and reports short-term information on tangible
costs and benefits that are easy to quantify. Traditional accounting practices are
often ill-suited to measuring the intangible and long-term benefits of FMS,
which are subject to a high degree of uncertainty and variability. These
measurement issues are exacerbated because FMS increases the level of
automation and changes the factory layout.
 QUESTION 4

PREPARE AN ORGANIZATION CHART SHOWING THE

MANAGEMENT STRUCTURE OF FIZZY COLA
BOTTLING COMPANY OF GEORGIA
ANSWER :
In Fizzy cola bottling company have president the name is miss molly, and she have
4 vice president. For vice president of marketing the name is Aice T. Hayes, For vice
president of operations the name is Rod L. Bunion ,for vice president for finance the
name is Alan C. Williams. And the vice president of marketing also have several
managers. There are manager for purchasing who is Edward. For production is Sinta,
the manager for sales is Devi, the manager for shipping is Devan, the manager for
local distribution centres is Suci. And then the other position that will be needed is
vice president of human resources, John Berg, because human resources manager has
close related test in managing the role relationship between workers in the company.
He has 2 managers, which are Ami who is responsible for Diklat, and also Ryan who
is responsible for performance appraisal. Therefore, they can work together to
support the company system and infrastructure as a whole. The work will be more
systematic.
ANSWER :
QUESTION 5

PREPARE IN GOOD FORM FLOWCHART OF THE

SALES ORDER PROCESSING, PRODUCTION, AND
COST ACCOUNTING SYSTEMS USED BY FCBCG.
ANSWER :
Sales Ordering Purchasing
The first step is we begin the process. And then blend raw materials to form syrup
concentrate for specific beverage, then is this a diet beverage? If Yes, we add artificial
sweetener to syrup concentrate, next we package syrup concentrate to shipment. If No, we
directly pack syrup concentrate and shipping it. And then, we receive syrup concentrate, is
this a diet beverage? . If Yes, the next step is Add water, carbonate, and bottle in appropriate
container, and then packing it for shipment. If No, the next step is add sugar / HFCS to
syrup, then Add water, carbonate, and bottle in appropriate container, and then package for
shipment and ship, next step is ship direct to merchant?. If Yes, we receive the product,
make available to consumer and then finish the step. If no, we receive product, then
repackage if necessary, then send to merchant or final customer, next we receive product,
then make available to consumer, and finish the procedure.
Producing
Cost Accounting
There are two part the first one is manage the period end, and the second is manage
inventory valuation, and then they are issued records, audit, review cost accounting and
the last from the data they are analyze product cost.
 QUESTION 6

EVALUATE THE ADEQUACY OF THE EXISTING

COMPUTER SYSTEM AND PROCESSING TECHNOLOGY
ANSWER :
The existing computer system works reasonably well. The computer system
supports multitasking, operating in a batch mode. A printer terminal serves as
the system console, and eight interactive terminals provide for online data
entry and file maintenance. When a single sales order calls for multiple
deliveries, it is broken up into multiple orders, each with a different sales
order number. Thus, each sales order number corresponds to a single delivery
to the particular customer; however, a cross reference is made to related sales
order numbers. The records in the master sales file are divided into two sub-
records, designated as types A and B.
QUESTION 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?
ANSWER :
Yes, it is. 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 database 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 is recommended for
an improved system.
 QUESTION 8

PREPARE AN OVERALL STRATEGY FOR MAKING

FCBCG'S ACCOUNTING INFORMATION SYSTEM MORE
RESPONSIVE TO THE COMPANY'S NEEDS.
ANSWER :
The strategy for making FCBCG’S accounting information system more
responsive to the company’s needs is by increasing concern that it has
not kept pace with the advances made in production and materials-
handling technology. Another strategy is to make the company have the
best accounting information system by; evaluating the existing system;
and by making appropriate recommended actions for an improved
system.
QUESTION 9
EXHIBITS 4 AND 5 SHOW DETAILED REPORTS-FOR
EACH PRODUCT AND PROCESS-OF STANDARD
PRODUCTION COSTS AND VARIANCES FROM
STANDARD. THESE REPORTS WOULD BE SUITABLE
FOR ROUTINE DISTRIBUTION TO FIRSTLEVEL
MANAGEMENT. DESIGN SUMMARY REPORTS,
SHOWING THE CORRESPONDING TOTALS FOR
EACH PROCESS AND FOR THE COMPANY AS A
WHOLE, THAT WOULD BE DISTRIBUTED TO A
HIGHER LEVEL OF MANAGEMENT.
ANSWER :
 QUESTION 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.
ANSWER :
Relational database management system is more accurately than conventional
file system is because : 
• The values of a column are all from the same domain 
• Each column has a distrinct name 
• The table has a name that is distinct from all other tables in database
• Each record is distinct,there are no duplicate records 
• Each cell of the table contains exactly one value 
• The order of columns has no significance
QUESTION 11

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.
ANSWER :
With send a memo to MR. Bunion about the difference,advantages and disadvantages between
using EDI system and manual system. So Mr. Bunion will be consider to choose EDI system.
EDI system is the electronic interchange of business information using a standardized format; a
process which allows one company to send information to another company electronically
rather than with paper.

Example of memo for Mr. Bunion

MEMO
To : Mr. Bunion
From : Hadi PT. Diamond
Subject : Recruitment of New Employees
Recruit immediately for the position of the warehouse development project manager in Jakarta.
Jakarta, 25 April 2021
Hadi, MM
ANSWER :
Positive and negative impacts of the EDI system :
• The positive impact is that we get many benefits and also we can easily access
various information from the internet.
• While the negative impacts such as financial fraud through the internet, e-mail
spamming, e-mail eavesdropping, sabotage of data belonging to others, and others.
This results in huge losses and the amount of the loss cannot be assessed with
certainty. 

The recommendation is to continue using this system because with this we can do
anything quickly and to anticipate the negative impact, namely by improving quality
such as HR because the better the EDI System is implemented the higher the quality of
its services and can reduce the risk of its negative impacts.
THANK YOU