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You are a self-employed consultant who informs companies on design and development of their accounting information system. You currently made a presentation to a local chapter of Institute of Management Accountants. After presentation, Peter approached you with some questions. Peter is chief accountant for Top Notch T-Shirt Printing, a company that makes custom t-shirts for student clubs, professional organizations and other groups.
The process of producing t-shirts classically goes like this: (a) Receive an order in person, over phone or via e-mail. The order adds the number, sizes and color(s) of t-shirts as well as the artwork. (b) Design or adapt group's name and logo for t-shirts. (c) Finalize order with client and establish the price; receive a 50 percent deposit from client. (d) Purchase plain t-shirts. (e) Print t-shirts. (f) Deliver printed t-shirts and bill the client for the remaining 50 percent. (g) Receive payment due from the client.
Required:
1. Peter requires to assess the risks at Top Notch T-Shirts. In order to do so he needs to visualize the general ordering, production and sales process in the company. You are required to create a flowchart describing the general process and information flows at Top Notch T-Shirt Printing.
2. Peter is planning to buy software to handle the ordering process in the company (steps (a) through (c)). In order to help Peter formulate the needs for the new software you are requested to arrange a data flow diagram for the ordering process at Top Notch T-Shirt Printing
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