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Unformatted text preview: Accounting Information Systems, 8e 1 SOLUTIONS FOR CHAPTER 12 Discussion Questions DQ12-1 Refer to operations process (effectiveness) goals shown in the control matrix (goals A and B in Figure 12.13). For the two activities (purchasing and receiving) describe a goal other than the one discussed in the chapter. ANS. Purchasing operations goals (sample): (Contained in Figure 12.13.) Select a vendor who will provide the best quality at the lowest price by the promised delivery date. Support other organizational units through a prompt purchasing process and through the timely notice of purchases placed. Maintain an adequate stock of vendors to provide a continuous, reliable source of supply. Minimize purchase returns and allowances. Facilitate cash planning. Facilitate logistical (e.g., warehouse, receiving) planning. Insure timely receipt of ordered goods and services. Minimize ordering costs and the costs of the goods purchased. Receiving operations goals (sample): (Contained in Figure 12.13.) Ensure that the right goods in the correct amount are received in acceptable condition in a timely manner. Process only authorized receipts. Promptly notify other organizational units of receipts. Forward goods to the warehouse or other requester in a timely manner. Minimize material handling costs. Promptly return or otherwise dispose of defective goods or goods not in conformity with purchasing specifications. DQ12-2 Explain why ambiguities and conflicts exist among operations process goals, and discuss some potential ambiguities and conflicts relative to the effectiveness goals you described in Discussion Question 12-1. 2 Solutions for Chapter 12 ANS. Conflicts exist because each organizational unit wants to do its best (or at least be seen as doing its best). However, many (perhaps any) individual units cannot perform at their best because trade-offs must be made so that the organization as a whole can do its best. Ambiguities may exist when it is not clear when a goal has been reached, which could happen, for example, when goals have subgoals. For example, which vendor is the best may not be clear. It may be that the purchasing office cannot find a vendor that can offer price, quality, and delivery date. In addition, some effectiveness goals may conflict with the other operation process goals: efficient employment of resources and security of resources. Conflicts that may exist relative to the processes goals in DQ 12-1 include the following: Adequate research may not precede a quickly prepared purchase order. To insure authorized receipts, we may provide the receiving department with complete copies of the purchase order. Without a blind copy of the purchase order, receiving clerks may not pay attention to counting the goods....
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- Spring '10