1.

Prepare a statement of objectives for an accounting

information system relevant to FCBCG's requirements.

Accounting information systems collect information for various purposes in a

business. The existing Accounting information system of Fizzy Cola Bottling
Company was implemented on a mainframe computer installed at the Columbus
headquarters, but was intended to serve the needs of the whole organization.
The computer system supports multitasking, operating in a batch mode.

So, FCBC use this system to gather and organize financial and other information
from divisions (central information collection). And then as FCBC growing
popularity and began its horizon and set it sights on national and ater
international operation. An accounting system can also benefit for FCBC whic can
allows for the electronic transference of information from many sources into a
central location where accountants gather and process this data with several
national or international locations. Accounting System also help improve the work
flow in FCBC by creating a central location for financial information and forms
with all members using the same system.
1
3. What are the accounting implications, if any, of the just-in-time inventory and
flexible-manufacturing concepts?
The accounting implications of the just in time inventory concept is The adoption of JIT
manufacturing system will implicate all the organizations control system such as
accounting information system. All the systems have to be updated to follow the innovation
of changing manufacturing system. The implication of JIT manufacturing system in
accounting area are very significant because the new system will affect all the accounting
entries by the different type of accounting information measurement.

Accounting for a JIT system is often simpler than other systems. Most accounting systems
focus on determining product costs for inventory valuation. But JIT systems have minimal
inventories, so there is less benefit from an elaborate inventory costing system. In true JIT
systems, material, labor, and overhead costs can be directly to cost of goods sold because
inventories are small enough to be ignored. All costs of production are assumed to apply to
products that have already been sold. The FCBC has never achieved the ideal "just-in-
time" inventory system, but over a ten-year period it has managed to reduce its inventories
or syrup concentrate, carbon dioxide, containers, and labels from ten days' to every day's
supply. To accomplish this feat, the company entered into long-term relationships with a
small number of loyal vendors, guaranteeing demand for delivery goods and sharing with
them its long-run purchasing expectations. The vendors in return, guarantee consistent
quality and on-schedule delivery. Fast-moving items are delivered daily, or in some
instances even more than once per day.
2
A flexible manufacturing system (FMS) is a manufacturing system in which there is some
amount of flexibility that allows the system to react in case of changes, whether predicted
or unpredicted. This flexibility is generally considered to fall into two categories, which both
contain numerous subcategories.

The first category, machine flexibility, covers the system's ability to be changed to produce
new product types, and ability to change the order of operations executed on a part.

The second category is called routing flexibility, which consists of the ability to use
multiple machines to perform the same operation on a part, as well as the system's ability
to absorb large-scale changes, such as in volume, capacity, or capability. FCBCG has
invested over $50 million in automated processing, bottling, and handling equipment.
Production of each beverage product consists of mixing the syrup or concentrate with
water, pumping in carbon dioxide to create the effervescence, filling the can or bottle,
affixing the appropriate label, and packing the cans or bottles into cases or crates.
Advantages of this systems are :Reduced manufacturing cost, Lower cost per unit
produced, Greater labor productivity, Greater machine efficiency, Improved quality,
Increased system reliability, Reduced parts inventories, horter lead times, Improved
efficiency, Increase production rate

3
 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?

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 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 4
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.

Take the file specifications presented in Exhibits 1-3 draw E-R Model (diagram) and
design a set of relational data base tables.
A Relational Database management System(RDBMS) is a database management system based on
relational model introduced by E.F Cod. RDBMS is used to manage Relational database. Relational
database is a collection of organized set of tables from which data can be accessed easily. Relational
Database is most commonly used database. It consists of number of tables and each table has its
own primary key. In relational model, data is represented in terms of tuples(rows).

RDBMSs use for the storage of information in new databases used for financial records,
manufacturing and logistical information, personnel data, and other applications. Relational databases
have often replaced legacy hierarchical databases and network databases because they are easier to
understand and use. In Relational database, a table is a collection of data elements organized in
terms of rows and columns. A table is also considered as convenient representation of relations. But a
table can have duplicate tuples while a true relation cannot have duplicate tuples. A single entry in a
table is called a Record or Row. A Record in a table represents set of related data. A table consists of
several records(row), each record can be broken into several smaller entities known as Fields. a
column is a set of value of a particular type. The term Attribute is also used to represent a column.