BAS6434 Advanced Accounting Information Systems Assessment Questions | MMU

Introduction

Yahama Bike Sdn. Bhd. is a successful bicycle company that manufactures and sells bicycles to retail stores and directly to the public. It has a manufacturing plant and head office located in Bukit Bintang, KL, and a series of regional offices for dealers and agents located throughout all states and territories of Malaysia. The main clients of Yahama Bike include professional cyclists and the Malaysian Olympic team. Yahama Bike also supplies bicycles to retail stores, which then sell to the public, and also offers a direct-to-the-customer sales avenue as well.

The sales system, as it relates to retail stores purchasing from Yahama Bike, will be the focus of this description. Generally, retail stores order standard products and do not opt for customization since experience has shown that standardized products sell quicker in a retail environment. Recognizing this, Yahama Bike operates its inventory on the basis that it has one month’s safety stock available. Traditionally, this has meant virtually no stock-outs when
handling retail store’s orders.

The sales process commences when a retail store sends a purchase order to its local Yahama Bike sales representative. These purchase orders contain details of the quantity and type of bicycle the store requires, as well as delivery details and deadlines for delivery. Yahama Bike provides its retail store customers with bundles of preformatted purchase order forms that retail stores can complete and either fax or mail to their local dealer. Since Yahama Bike prides itself on excellent levels of customer service and satisfaction, it always strives to meet customer deadlines for delivery and has, in the past, had a 95 percent success rate in doing so.

Upon receipt of the purchase order form from the retail store, the regional dealer will scan the purchase order to ensure that all required fields on the form are complete. If any details are missing, the retail store will be called up, enabling the regional dealer to obtain the details missing from the form. Once checked for completeness, a copy of the purchase order is faxed off to both the sales head office and the accounts department at Yahama Bike’s head office in Bukit Bintang. The regional dealer files the original purchase order in a pending order file.

The accounts clerk, who works in the accounts office, will receive the faxed purchase order and run a check on the retail store’s credit history. Assuming there are no problems or excessive amounts outstanding, the accounts clerk then issues a credit approval for the transaction to proceed. A copy of the approval is faxed back to the regional dealer, while a second copy is sent to the sales head office in Bangsar. The faxed copy of the purchase order is then filed away by the accounts clerk in chronological order.

Once the sales head office receives the approval and a copy of the purchase order from the regional dealer, the two documents are matched up. The data entry clerk then keys the details of the order into the central sales system. Details entered include the client’s unique ID number, the date the order was received, the expected delivery date, the quantity and description of items ordered, and the reference number for the credit approval from the accounts department. The data entry clerk’s staff number is also recorded to enable tracking of who enters transactions into the system. These details are stored in the sales file.

The computer then processes these details and runs a check of stock levels. If the products ordered by the retail store are currently available, the order is confirmed, and a picking slip is prepared and sent to the warehouse, while four copies of an invoice are also generated. One copy of the invoice is held in the sales head office. The remaining three copies are sent by the sales clerk to accounts and the regional office as follows: one copy goes to the accounts department, where it is matched up with the invoice number, and the remaining two copies are sent to the regional dealer. When the two invoices reach the regional dealer, one copy is forwarded to the customer, and the second copy is filed away by customer name.

If the goods are not available when the order is keyed in by the data entry, a request for production is automatically generated by the computer and sent electronically to the manufacturing department. Upon receipt of the request for production, manufacturing will produce the required goods. Once complete, a production confirmation will be sent back to the data entry clerk to enable invoices to be generated.

Question 1 [CLO2]

Based on your understanding of the narrative for sales system and procedure of Yahama Bike Sdn Bhd, prepare the following:

a. Context diagram for Yahama Bike Order Process

b. Logical data flow diagrams (DFD) for Level-0 and Level-1 for one of the process

c. System flowchart for the system and procedure of ordering products from Yahama Bike Sdn Bhd. 

Question 2 [CLO2]

Your team is hired by the owner of Yahama Bike Sdn Bhd to improve its ordering system and procedure. Considering the current trends of information technology, prepare the following as part of the proposal to be presented to the owner for approval:

a. The narrative of the proposed system

b. Context diagram of the proposed system

c. Leveled DFD (Level-0 and Level-1 for one of the processes). 

Question 3 [CLO4]

As the management would like to conduct a detailed systems development for the case, briefly explain the key activities of SDLC that need to be conducted. Your key activities must include controls necessary to regulate systems development and maintenance activities. 

Question 4 [CLO4]

Select ONE of the following development strategies and discuss whether it is suitable for the Yahama Bike Sdn Bhd sales system. Justify your answer by discussing the pros and cons of the method for the company.

1. Outsourcing

2. Purchase pre-written software

3. In-house development.

Important notes:

• If you use the works of other authors, you must cite the authors’ names in the report and the reference list.
• Please use the American Psychological Association (APA) Style when citing references in the text and when developing the reference list.
• Please submit your complete report in the MMLS or Google Classroom as specified by your tutor.
• All items for submission must be professionally presented (no handwriting allowed).
• Table of contents should be included.
• An evaluation form MUST be included with the assignment. Place it after the front cover of your documentation.
• No marks will be awarded for late work.
• Colluded or plagiarised work shall receive no marks.
• All parties involved in any cheating or collusion shall receive no marks.

Recommended readings:

1. Romney, M. B., and Steinbart, P. J. (2017). Accounting Information Systems. 14th edition. Prentice Hall International, New Jersey, USA.

2. Hall, J. A. (2015). Accounting Information Systems. 9th ed. Cengage Learning, USA.

Reminders:

• Plagiarism is a serious offense.
• Plagiarism includes the following behaviours (but is not limited to):
  o copy another student’s work, o fail to properly cite other people’s work or give proper credit to the source, or hire or ask another individual to complete the assignment for you, o copy too many words or ideas from one or two sources, that makes up a significant portion of your work, even with proper citation.
• The lecturer has the right not to accept submissions of plagiarised or duplicated work.