core concepts of accounting information system

13.13-the Goochland Company manufactures various types of clothing products for women. To accumulate the costs of manufacturing these products, the company’s accountants have established a computerized cost accounting system. Every Monday morning, the prior week’s production cost data are batched together and processed. One of the outputs of this processing function is a production cost report for management focuses on the significant variances as the basis for analyzing production performance.

Errors sometimes occur in processing a week’s production cost of the reprocessing work on a week’s production cost data is estimated to average about $12,000. The company’s management is currently considering the addition of a data validation control procedure within its cost accounting system that is estimated to reduce the risk of the data errors from 16% to 2% and this procedure is projected to cost $800/week.

a.Using these data perform a cost benefit analysis of the data validation control procedure that management is considering for its cost accounting system.

     b. based on your analysis, make a recommendation to management to management regarding the data validation control procedure.

Show more >
  • wahidhaq
    wahidhaq
    28 orders completed
    $5.00
    ANSWER
    Tutor has posted answer for $5.00. See answer's preview

    *********

    *

    Cost-benefit

    **********

    ******* Control **********

    ****

    ********

    **********

    *** Expected

    ***********

    ****

    **

    reproducing

    **********

    cost *****

    *******

    $12000

    Risk

    ** ****

    *******

    ****

    ***

    ************ **** ******** ******* * ******

    *

    *****

    $

    ****

    $1680

    ****

    of

    ********** control procedure ************

    cost)

    *

    *

    800

    ($

    800)

    Net

    ********* ******* **** validation control **********

    *

    **** *

    **********

    ****** *********

    ***

    data

    **********

    ******* procedure ******* ** the **** net

    *********

    ******* ****

    **

    ********* ****

    this

    *********

    Click here to download attached files:

    Core concepts of accounting information system.doc

    Buy

Learn more effectively and get better grades!

Do my homework