Citizens Gas Company
Question One
The president has already outlined the definite objectives that the planning director should meet within the specified periods. These therefore should be employed in the system creation in a bid to ensure that all elements are adequately addressed. The specified goals will serve as the features for the entailed system. Firstly, periodical tactics in monthly durations are mandated, with a rather comprehensive one for the initial year, as the basis for futuristic projections within the subsequent four periods (Romney, & Paul, 2010). This comprises of quantitative information as concerned with purchases and procurements as the chief determinants of the monetary inflows and outflows, and the assessment of demand and supply elements. This is in a bid to infuse an effectual system that will aid in ensuring that deficiencies and oversupply elements are eliminated within the company. Deficiencies act as a negative aspect as it leads to the loss of market shares as noted with the curtailments while oversupply enhances the outlay of tied-up principal as well as the opportunity costs.
The system has to be structured in an automated manner that supervises tangibles like procurements, purchases, deficiencies and unmet supply as sustained by an AIS structure. Secondly, the system is required to generate periodical reports and programs that will aid the corporate director as well as the other managers with the decision process (Hall, 2010). The documents will bear tangible data for the appraisal element as this will aid the company in assessing the effectuality of the recommended aspects. Early recognition of inefficiencies and issues arising from the execution phase as well as the problems encountered within the accomplishment stages are easily dealt with on a timely basis and therefore lessening the failure probability. Healthy choices and tactical projections with regard to the futuristic needs aid the company in the acquisition of a competitive edge for business persistence against rival institutions. The system should be fitted with checks like generation of charts for comparison purposes with the posited targets as a requirement for the appraisal element.
Question Two
The first item is the revenue cycle that generally details associations between the company and the consumers (Romney, & Paul, 2010). Data in this function will thereby reflect the purchases accorded within a given period. A modification in this function should be able to grant data on deficiencies within the company by infusing a database that documents all placed purchases and the status of met or unmet; the latter being the deficiency report. The second item would be the expenditure cycle that centers on the associations between the company and sellers. This affords vital information for the procurement element and this should document all met and unmet placements with the present suppliers. The unmet placements will aid the company in the supervision of unachieved supply. The third item is the financing cycle that documents the investment element within the company and therefore offers the capital base present to the institution within a given period (Romney, & Paul, 2010). All businesses are sustained by the turnovers and therefore it is an imperative element within the company. It will aid in the planning requirement by indicating the finances available for an expansion scheme.
Question Three
The revenue cycle is a crucial element in the company to aid with the elimination of the shortages that have been noted in previous periods. Present trading settings have enhanced competition in the adoption of the globalization aspect necessitating the efficacy of business practices in a bid to acquire and retain the consumer base (Gelinas, & Richard, 2009). Availability of alternate products with trivial levels of switching overheads has empowered the consumers in their spending patterns and inclinations. Deficiencies within the company are therefore a negative function that mandates immediate elimination for the retention need. The revenue cycle will thereby assist the corporation in quantifying the supplementary supply required to check the issue. The expenditure cycle will aid the company with monitoring the specific level of products sourced from the current ten suppliers as this will reflect the constant procurement levels that can be obtained within specified periods.
Additionally, the company will also be able to enumerate the unmet element arming the institution with the additional level mandated for the elimination of deficiencies. This item has a complementary association with the financing cycle that reveals the fiscal base present for any expansion requirements. Undeniably, as the present suppliers have proven to be inefficient in enhanced demand periods, then alternative sellers have to be contacted to cover the additional requirement (Gelinas, & Richard, 2009). With this, the company will attain an enhanced level of efficacy translating into elevated profit margins as attributable to the superior consumer retention and lessened opportunity overheads.
Question Four
The revenue cycle mandates highly detailed data necessitating the inclusion of any level of purchases even if it is only a single unit. This has to be extended for both afforded and unmet levels as microelements act as the foundation of the whole system. This precision standard is imperative within the cycle because of the accrual element that leads to a substantial issue once the small levels of purchases are combined (Hall, 2010). The same applies for the expenditure cycle as a corresponding associate element to purchases. This is evidenced by the fact that consumer fulfillment is only attained initially through the demand aspect. Both therefore have to balance for an optimal relationship and the elimination of colossal levels of surplus as this enhances the outlay of tied-up capital, a high contributor to losses. Lastly, the financing cycle also necessitates an equal level of precision to overcome misappropriations as this accords an unconstructive aspect in the company in terms of costs; enhanced overheads constitute to lessened profit margins.
References
Gelinas, U. J., & Richard, B. D. (2009). Accounting Information Systems. Stamford, CT: Cengage Learning.
Hall, J. A. (2010). Accounting Information Systems. Independence, KY: Cengage Learning.
Romney, M. B., & Paul, J. S. (2010). Accounting Information Systems. Upper Saddle River, NJ: Pearson.
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