DATO, VENICE B. I.T. 5PEAS, ALYSSA JOYCE B.PROF. E M TORRES

ACTIVITY 1QUESTIONSANSWERS

A. Archiving a record is an alternative to deleting a record? What is the benefit that can be derived from it?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.

B. Are large batch sizes preferable to small batch sizes when it comes to data processing? Explain.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 feedback.

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

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

E. Give at least one criteria that influence selection of data structure? What data structure is suited for that?The criteria that influence selection of data structures include the insertion of record into a file. This will need sequential structure so as the records will automatically be inserted into the right path.

F. How do backup procedures for files with a direct access structure differ from sequential files?In a direct access structure, each record is assigned in a unique disk location or address that is determined by its key value. Because only a single valid location exists for each record, 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 becomes damaged or corrupted, no backup version exist from which to reconstruct the file while sequential file update process produces new physical masters file. The new file contains all of the records from the original file, including those that were updated by transactions and those that were not updated. The original master continues to exist. If the current master file become lost, damaged, or corrupted by erroneous data, a new file can be created from the original master files and the corresponding transaction files.

G. How do you consider Microsoft Office Systems? Is it a turnkey, backbone or vendor supported system? Explain your answer.I think MS Office System is a backbone system because it consist the basic system structure in which to build. The primary processing logic is programmed, and the vendor then designs the user interfaces to suit the clients unique needs.

H. If a certain system in a business is centralized does it mean that the whole business is centralized? Explain your answer. (You are encouraged to give practical business cases)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.

I. If accountants are viewed as providers of information, then why are they consulted as system users in the system development process? Give a practical example to support your answer.Accountants as end users must provide a clear picture of their needs to the professionals who design their systems. Example, the accountant must specify accounting rules and techniques to be used, internal control requirements, and special algorithms such as depreciation models.

J. 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.Real time processing system process transactions individually at the moment the event occurs. Because records are not grouped into batches, there are no time lags between occurrence and recording compared with batch processing system.

K. 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. Explain it by giving a practical example of REA model (which is of course not on the book)REA treats the accounting system as a virtual representation of the actual business. In other words, it creates computer objects that directly represent real-world-business objects. For example, in the sales process, one event would be "sales"where goods are given upand the other would be "cash receipt", where cash is received. These two events are linked; a cash receipt occurs in exchange for a sale, and vice versa. The duality relationship can be more complex, e.g., in the manufacturing process, it would often involve more than two events.

L. What are the 3 general problems associated with data redundancy and give a practical example for each.The three general problem associated with data redundancy are Wasted Storage Space,More difficult Database Updates, A Possibility of Inconsistent data. Examples, Autonimous sysytem developments activities distributed throughout the firm can result in each user area reinventing the wheel. Another example customer data exist only once, but is shared by accounting, marketing, and product services users.

M. 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.g. Chief Executive Officer belongs to top management). Give examples of vertical flow and horizontal flow of information.The four levels are Top management, middle management, operation management and operation personnels. Example.,Operations manager, this individual is the leader for the operation and has overall responsibility for the financial success of the business. The operations manager handles external relations with lenders, community leaders and vendors.(horizontal) Frequently, this individual also is in charge of either production or marketing for the business. This person will set in motion the vision, strategic plan and goals for the business (vertical).

N. What are the three fundamental task of data management and give a practical example for each task.Three fundamental tasks of data management, storage, retrieval and deletion, storage, for assigning keys to a new records and stores them in their proper location in the database. Retrieval is the task of locating and extracting an existing record from the database for processing. Deletion is the task permanently removing obsolete or redundant records from the database.

O. What is feedback? Give a practical example of it and how is it beneficial to the system?Feedback is a form of output that is sent back to the system as a source of data. For example, an inventory have fallen to, or below, their minimum allowable levels. Internal feedback from the information will initiate the inventory ordering process to replenish the inventories. Similarly, external feedback about level of uncollected customer accounts can be used to adjust the organization's credit-granting policy.

P. What is meant by cardinality in E-R diagram? Provide an example based on a case record.Cardinality is the numeric mapping between entities instances. if we think of entities in the ER diagram as files of records, cardinality is the maximum number of records in one file that are related to a single record in the other file and vice versa. for example, each salesperson in the organization is assigned one automobile. If instead the organization's policy were to assign a single automobile to one or more persons who share it, this policy would be reflected by a 1:M relationship. Similarly, the M:M relationship between vendor and inventory implies that the organization buys the same type of products from one or more vendors. A company policy to buy particular items from a single vendor would be reflected by a 1:M cardinality.

Q. What processing requires considerable computer networking? Is it real-time or batch processing? Explain.It is real- time processing that is requires considerable computer networking, because records are not grouped into batches, there are no time lags between occurrence and recording.

R. Why is cost accounting also applicable in service - oriented business such as hospitals? Explain.Cost accounting encompasses a body of concepts and techniques that support the objectives of both financial accounting and managerial accounting. Activity - Based Costing can be applied in service industries other than those described here. It has become increasingly important for companies whose markets are becoming more competitive. Since ABC is really about cost management, using it allows service companies to reduce and control their costs in order to make correct pricing and other decisions, and to increase their profitability. It is likely to continue to become more prevalent in the service industry in the future.

S. Why is management report considered discretionary reporting?Management reporting is called discretionary reporting because the organization can choose what information to report and how to present it.

T. Why is transaction file called a temporary file?Transaction file is called temporary file because it used to change or update data in a master file.