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ACC564 Case 20-1 Citizen's Gas

ACC564 Case 20-1 Citizen's Gas - Assignment#3 Case 20-1...

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Assignment #3 Case 20-1 Citizen’s Gas Company Toni L. Grimes Accounting Information Systems – ACC564 Dr. Elias Konwufine June 12, 2011
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Discuss the criteria that must be considered in specifying the basic structure and features of Citizen’s Gas Company’s new system to assist in planning its natural gas needs. The criteria which must be considered in specifying the basic structure and features of Citizens' Gas Company's new system to assist in planning its natural gas needs include the following: Need for market information The factors which affect the demand and supply for gas must be isolated, their relative importance determined, and their effect quantified. Need for accuracy The accuracy requirement of the system determines the required level of detail, quality of the input data, and sophistication of the system logic. While the system must be designed to provide accuracy which matches the need, care must be taken to ensure that excessive effort is not spent in being overly accurate in specific areas when the overall accuracy is inherently less due to the planning environment. Frequency of use The frequency of use of the system provides direction as to the level of mechanization. If the system will be used only once each month to project the effect of the most recent actual data, it may be sufficient to develop a system which is a combination of mechanized and manual procedures. If it is likely that a variety of alternatives will be evaluated each month, a fully mechanized system will be more desirable.
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