TBChap006

Chapter 06 Purchases and Payments Business Process

1.

The Purchase Orders table would have five foreign keys. True

False

6-1 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2.

The Cash Disbursements table would have three foreign keys. True

False

3.

The association between Purchase Orders and Products would be implemented with a linking table. True

False


4.

The association between Purchase Orders and Cash Disbursements would be implemented with a linking table. True

False

5.

The Purchase Orders table would contain two foreign keys to implement the associations with Employees. True

False


6.

The Purchases table would have four foreign keys. True

False

7.

The associate between Purchase Orders and Purchases would be implemented with a linking table. True

False


8.

The Purchase Orders table would have the same foreign keys as the Purchases table. True

False

9.

Each Purchase Order would be ultimately linked to one cash disbursement. True

False


10.

The Cash Disbursements table would have three foreign keys. True

False

11.

The Products table would include a foreign key to link it to Product Categories. True

False


12.

The association between Purchase Orders and Cash Disbursements could be implemented with a foreign key in either table but not both. True

False

13.

The linking table between Supplier Categories and Product Categories would contain the attribute summarizing summarizing year-to-date purchases for each supplier category and product category combination. True

False


14.

The linking table between Purchase Orders and Products would likely indicate the quantity of each product ordered and the quantity of each product received. True

False

15.

A query using Purchase Orders and Cash Disbursements could report accounts payable by showing records where the foreign key was NULL (blank). True

False


16. Many companies record both purchase orders and purchases; when would such a company recognize the purchase?

A. When the purchase order is issued. B. When the supplier receives the purchase order. C. When the products are received from the supplier and accepted. D. When the products are sold. 17. In a BPMN collaboration model of the purchase process, one pool describes the focal organization's activities and the other pool describes what?

A. The supplier's activities B. The customer's activities C. The sequence of steps in the process D. The message flows between the pools poo ls 18. In a BPMN collaboration model of the purchase process, which of the following f ollowing is the appropriate term for the message flows between pools?

A. Orchestration B. Choreography C. Collaboration D. Intermediate events


19. In a BPMN collaboration model of the purchase process, which of the following f ollowing best describes the purpose of swimlanes is which of the following?

A. Capturing the process complexity B. Clarifying the interaction between pools C. Showing the sequence of activities in a pool D. Showing different jobs in the purchase process 20. In a BPMN activity diagram, which of the following best describes the purpose of an intermediate timer event?

A. Represent a time delay B. Indicates a delay to a specific date/time C. Indicates a delay to a relative date, such as next Thursday D. All of the above 21. Which of the following least reflects the purpose of a business rule in the purchase process?

A. Ensure suppliers are paid on time B. Require segregation of order, receiving, and payment pay ment duties C. Ensure suppliers are satisfied D. Ensure an audit trail


22. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Purchases and Cash Disbursements classes?

A. Each supplier must be paid for the purchases from that supplier B. Disbursements are made after the purchases are recorded C. One purchase can result in multiple payments to the supplier D. Each check written to the supplier is for one specific purchase 23. Review the following diagram. Which answer provides the best interpretation o f the multiplicities for the association between the Purchases and Products classes?

A. Each purchase order specifies many products B. Each purchase is for one product C. Each purchase can include many products D. Checks are written after products p roducts are added to inventory


24. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Sunset Partners and Supplier Categories classes?

A. Each partner can be assigned to manage many supplier categories B. Each partner can only purchase products from one supplier category C. Each supplier category is managed by several partners D. Each supplier is linked to one partner


25. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Product Categories and Supplier Categories classes?

A. Each partner can only purchase products from one supplier category and for one pro duct category. B. Every supplier and product category can be managed by several partners, but no partner manages both. C. Some partners may manage several product categories, and some p artners may manage several supplier categories, but there is no direct link between supplier and product categories. D. Supplier and product category information can be used to calculate year-to-date sales for each product/supplier category combination.


26. La Jolla Management Company (LJMC) manages several apartment complexes and earns revenues by renting out the apartments in those complexes. LJMC assigns an agent/manager (employee) to each complex (one manager can manage several complexes) to handle day-to-day operations, such as maintaining the property, advertising, and signing rental contracts. This case describes the purchase of maintenance service process. Complexes and apartments. LJMC has acquired fifteen and built several more new apartment complexes over the last two years. It identifies complexes by unique name and apartments by the combination of the complex name and apartment ap artment #. LJMC categorizes each apartment according to the number of bedrooms and bathrooms, as well as other factors. There are more than 20 apartment categories at present, each identified by unique category #. Since each complex presents a unique set of luxury appointments and amenities, LJMC determines the standard monthly rental fee by considering both the apartment category and complex, for example 2 bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado Arms complex (where there is no view and the complex is close to a freeway) but the same category apartments rent for $2850 per month in the La Jolla Cove complex (where there is a view of the ocean from most apartments in the complex). Maintenance Jobs. LJMC keeps its apartments and complexes in top condition. The LJMC complex managers monitor the condition of the facilities. Whenever the condition falls below LJMC standards, the managers hire contractors to bring the apartment back up to specification. LJMC classifies each maintenance job by job type, and the managers match the job type to the contractor type that can best perform the job. The LJMC manager then selects one specific contractor for the job from that contractor type. Each contractor may belong to several contractor types. Each maintenance job involves either one apartment or the common areas of the complex. LJMC tracks the maintenance performed on apartments and complex co mplex common areas. LJMC pays its contractors in full at the end of the month for all jobs that the contractor performed during the month. Other Information. Agents, resources, and type images may be recorded in the database before they are linked to other oth er classes. LJMC tracks all its employees in one employee class. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, multiplicities, 2) prepare a listing of the tables necessary to support La Jolla Management Company's process using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes). 6-14 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Attributes


27. Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC's processes for leasing trucks, maintaining trucks, and purchasing plants. Inventories. PGC maintains an inventory of trucks of all sizes to support various landscaping requirements (the acquisition acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle identification numbers (VINs) and keeps meticulous records on each truck. For example, they track the mileage for each truck on each landscaping job. Additionally, Add itionally, they track the maintenance history history for each truck. Each type of truck has a different use and hauling capacity, but each truck in a particular truck type has the same use and hauling capacity. PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large trees, so they can address almost any landscaping requirement requirement on short notice. Since the common name of many plants vary by region, PGC tracks its plant inventory by scientific names (i.e., the Latin names). To manage the plant inventory and ensure that the best plants are applied to job conditions, Heather categorizes all plants by plant type. Truck Leases. PGC leases all its trucks from local dealers. PGC purchasing agents negotiate the leases. Each lease involves only one truck due to the state registration requirements. The dealers require a down payment at the time a lease is signed, and then PGC makes payments p ayments monthly over the life of the lease. Although PGC usually turns in the trucks at the end of the lease, occasionally, PGC will sign a new lease for an existing truck when that truck provides unusual capability or has relatively low mileage. Truck Maintenance. PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. Then, PGC takes its trucks to the contracted shops when maintenance is required. A PGC purchasing agent approves each maintenance invoice after carefully checking it against the contract terms and assigns a purchase number to track the purchase of maintenance. A PGC cashier pays the truck maintenance vendors monthly for all the maintenance invoices received during the month. Plant purchases. PGC buys its plants in bulk b ulk to keep its plant inventory well stocked. Because PGC has an excellent relationship with its plant vendors, it places informal orders by phone. When the plants are delivered and accepted, PGC assigns a purchase number to each receipt. PGC cashiers pay for plant purchases within 30 days of the delivery. PGC cashiers occasionally combine payments if there are multiple deliveries from the same vendor within a short period of time. 6-16 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Employees. PGC keeps all employee information together (your model should show one Employee class). They track each employee's qualifications according to category: purchasing agent, cashier, landscaping laborer, truck driver, supervisor, etc. An employee is considered qualified when he or she reaches the number of training hours required for that category. However, each employee can hold qualifications for several categories, for example an employee qualified as a purchasing agent could also be qualified as a truck driver. Vendors. PGC keeps all vendor information together (your model should show one Vendor class). However, they classify the vendors by type: truck dealer, truck repair shop, plant vendor, etc. Miscellaneous. You may assume that all agent, resource, and type image information is entered into the database before any process activity takes place. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, multiplicities, 2) prepare a listing of the tables necessary to support PGC's processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes). Attributes:



28. Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC's processes for maintaining trucks. PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. If the purchasing agent cannot negotiate satisfactory contract terms, the contracting process terminates. The process then starts over until contracts are in place. When trucks are due for maintenance or repair, a PGC truck driver takes its trucks to the contracted shops. A PGC purchasing agent approves each maintenance invoice after carefully checking it against the contract terms and to confirm that the required maintenance maintenance or repairs are made. If the maintenance complies and the repairs were satisfactorily performed, PGC assigns a purchase number to track the purchase of maintenance. A PGC cashier then pays the truck maintenance vendors. If the invoice does not comply with the terms of the contract, the PGC purchasing agent returns the invoice for correction. If the repairs are not satisfactory, the purchasing agent takes the truck back so the shop can perform the repairs or maintenance satisfactorily. : Using the description above, correct the following BPMN activity diagram to accurately depict the PGC truck contracting and maintenance process. process.


29. Integrated Case combining both sales and purchases processes. Background: When Arnold retired from politics after the state budget crises of 2008, 2009, and 2010 he found that the downturn in the overall economy had affected his retirement plans. Plus, he needs money for his divorce from Maria while his new movies are still in production. So, he decided to open a unique health spa that will cater to movie stars and other wealthy clients. Taking advantage of the historically low mortgage rates, he acquired an impressive estate in Rancho Palos Verdes overlooking the Pacific Ocean and converted it into an expensive spa. After some extensive market research and a number of personal visits to other spas (it was a tough job but someone had to do it), he opened

offering a variety of activities (such as golf, Pilates,

yoga, massage, mud baths, aerobics, weight lifting, dodge ball, etc.) so clients have the option of either 1) getting physically fit with the latest in exercise technology or 2) just relaxing in luxury. His spa quickly became extremely successful and he plans to expand to other cities. Arnold realizes that his business needs an accounting system, and he has asked yo u to analyze his requirements and help him design a system that can grow along with his business. Arnold's business requirements: requirements: During your interview with Arnold, he describes his business requirements for his purchasing and sales processes p rocesses as follows: Spa Packages. We offer our clients a selection of

that changes according to the time

of year and customer demand. For example, we might offer the Spring Getaway Package , the Relaxing Escape from the Economy Package , the Pure Indulgence Package , the Sports Package ,

and the Steroid-Free Bodybuilding Package . Each package includes several

, such as

weight lifting, aerobics, Pilates, mountain biking, yoga, tennis, golf, various skin care therapies, hydrotherapies, body therapies, and massage. The price of each spa package depends on the specific activities included in the package. For example, the Steroid-Free Bodybuilding Package includes includes weight lifting, yoga, dodge ball, and scientifically designed ice baths to restore the muscles. Each activity could ap pear multiple times in each spa package, for example we could include two rounds of golf in one package. Of course, each activity is included in multiple spa packages. We set the price of each spa package by first determining what we want to charge for each of the activities depending on the time of year, the products used in the activity, and expected popularity. We then add up the charges for each activity to form the overall price for the spa p ackage; however, the clients only see one single price for fo r the whole package. To monitor profitability, we track year-to-date sales information for each activity included in any spa package. Sales process (spa visits): Arnold's California Spa emphasizes customer service, of course. Each 6-20 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

client makes reservations in advance, and one reservation could schedule several future spa visits (each individual spa visit involves involves only one spa package, but the client could select a different spa package for each visit). When the client arrives for a spa visit, we assign one of our employees to be responsible for the client and direct all the client's activities for that visit. This respo nsibility only applies to the specific visit. Other employees will also be involved in the spa visit depending upon the activities included in the specific spa package that the client selected. For example, the visit director may conduct a golf lesson for the client while an assisting employee may provide a therapeutic massage massage for the client's guest (to maintain appropriate discretion, we don't track clients' guests). We expect our employees to provide the highest quality customer service and we plan to hold them accountable. Since all of our employees will be able to be visit directors, we want to track who directs and a nd who assists with each specific visit as well as the number of hours they spend with the client. Since most clients love their experience and want to return, we offer them an opportunity to become members of Arnold's Entourage . Entourage members earn membership rewards based on the number of visits and the amounts spent. Entourage members also get priority reservations and can pay for visits over time with regular monthly payments, where the number of p ayments depends on their membership group: bronze, silver, or gold. Since an Entourage member could visit several times while while also making payments for prior visits, each client payment could apply to several spa visits. Clients that are not Entourage members must pay for each spa visit in full at the time of the visit. To plan for future marketing, we track year-to-date spending for each combination of Entourage Group and activity, so we can see which activities appeal to which membership group. Product Inventory and purchasing. We maintain an inventory of products —such as sports gear, towels, robes, shampoos, golf balls, body-wrap material, seaweed, massage oils, bodybuilding supplements, raw fruit juices, and vitamins — that we use in the spa visits. We record the quantity and cost of each product used in a spa visit as well as the total costs for each visit to determine profitability. For planning, we also track which products are used in each ac tivity, although many products are used in multiple activities. We estimate the quantity and cost of each product used in each activity, which then allows us to estimate the overall cost of each activity, so we can decide what to charge for the activity when it is offered in any spa package. We buy our products from a number of vendors. We've already worked out agreements for them to deliver products on a regular basis. We record purchases by purchase number when they deliver the products. All our vendors require payment in full within 30 days after we receive the products, but depending on timing, we may issue one check to pay for multiple purchases from a vendor. 6-21 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Other information. We record information about activities before they are offered in any spa package, and we add new spa packages before any client purchases them. We have a payroll service that handles all our payroll needs, so you don't need to consider payroll in your analysis. We assign each employee an employee number and a job title, like "master masseuse", "yoga instructor supervisor", supervisor", "hair styling specialist" and "the guy who will pump you up." However, every employee can perform several different jobs at the spa, so we keep all the employee information in one set of records. We only use the title to impress our clients and not for any real business purpose (we don't categorize employees by employee types). typ es). We record information about all agents, resources, and type images before they are linked to other classes. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, multiplicities, 2) prepare a listing of the tables necessary to support Arnold's California Spa processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).


Chapter 06 Purchases and Payments Business Process Answer Key

1.

The Purchase Orders table would have five foreign keys.

AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-06 Implement a relational database from the UML class diagram of the purchase and payment process. Source: Origina Topic: Purchases and Payment


2.

The Cash Disbursements table would have three foreign keys.



3.

The association between Purchase Orders and Products would be implemented with a linking table.



4.

The association between Purchase Orders and Cash Disbursements would be implemented with a linking table.



5.

The Purchase Orders table would contain two foreign keys to implement the associations with Employees.

AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-06 Implement a relational database from the UML class diagram of the purchas e and payment process. Source: Origina Topic: Purchases and Payment


6.

The Purchases table would have four foreign keys.



7.

The associate between Purchase Orders and Purchases would be implemented with a linking table.



8.

The Purchase Orders table would have the same foreign keys as the Purchases table.


9.

Each Purchase Order would be ultimately linked to one cash disbursement.

AACSB: Analytic 6-30 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-06 Implement a relational database from the UML class diagram of the purchase and payment process. Source: Origina Topic: Purchases and Payment

10.

The Cash Disbursements table would have three foreign keys.



11.

The Products table would include a foreign key to link it to Product Categories.



12.

The association between Purchase Orders and Cash Disbursements could be implemented with a foreign key in either table but not both.



13.

The linking table between Supplier Categories and Product Categories would contain the attribute summarizing summarizing year-to-date purchases for each supplier category and product category combination.



14.

The linking table between Purchase Orders and Products would likely indicate the quantity of each product ordered and the quantity of each product received.



15.

A query using Purchase Orders and Cash Disbursements Disbursements could report accounts payable by showing records where the foreign key was NULL (blank).



16.

Many companies record both purchase orders and purchases; when would such a company recognize the purchase?

A. When the the purchase order is issued. B. When the the supplier receives the purchase purchase order. When the products are received from the supplier and accepted. D. When the the products are sold. AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-01 Describe the business activities that comprise the purchase and payment process. Source: Origina Topic: Purchases and Payment

17.

In a BPMN collaboration model of the purchase process, one pool describes the focal organization's activities and the other pool describes what?

The supplier's activities B. The customer's activities C. The sequence sequence of steps in the process D. The message message flows between the pools AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-02 Develop an activity model of the purchase and payment process using BPMN. Source: Origina Topic: Purchases and Payment


18.

In a BPMN collaboration model of the purchase process, which of the following is the appropriate term for the message flows between pools?

A. Orchestration A. Choreography C. Collaboration C. D. Intermediate events AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-03 Understand and apply different activity modeling options. Source: Origina Topic: Purchases and Payment

19.

In a BPMN collaboration model of the purchase process, which of the following best describes the purpose of swimlanes is which of the following?

A. Capturing the process process complexity B. Clarifying the interaction between pools C. Showing the sequence of activities in a pool Showing different jobs in the purchase process AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-03 Understand and apply different activity modeling options. Source: Origina Topic: Purchases and Payment


20.

In a BPMN activity diagram, which of the following best describes the purpose of an intermediate timer event?

A. Represent a time delay B. Indicates a delay to a specific date/time C. Indicates a delay to a relative date, such as next Thursday All of the above AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-03 Understand and apply different activity modeling options. Source: Origina Topic: Purchases and Payment

21.

Which of the following least reflects the purpose of a business rule in the purchase process?

A. Ensure suppliers are paid on time B. Require segregation segregation of order, order, receiving, and payment duties Ensure suppliers are satisfied D. Ensure an audit trail AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-04 Develop business rules to implement controls for the purchase and payment process. Source: Origina Topic: Purchases and Payment


22.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Purchases and Cash Disbursements classes?

A. Each supplier must must be paid for the the purchases from that supplier Disbursements Disbursements are made after the purchases are recorded C. One purchase can result in multiple payments payments to the supplier supplier D. Each check written written to the supplier supplier is for one specific specific purchase AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-05 Develop structure models for the purchase and payment process using UML class diagrams. Source: Origina Topic: Purchases and Payment


23.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Purchases and Products classes?

A. Each purchase purchase order specifies many products B. Each purchase is for one product Each purchase can include many products D. Checks are written written after products products are added to inventory inventory AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-05 Develop structure models for the purchase and payment process using UML class diagrams. Source: Origina Topic: Purchases and Payment


24.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Sunset Partners and Supplier Categories classes?

Each partner can be assigned to manage many supplier categories B. Each partner can only purchase purchase products from one supplier category C. Each supplier category is managed managed by several several partners D. Each supplier is linked to one partner partner AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-05 Develop structure models for the purchase and payment process using UML class diagrams. Source: Origina Topic: Purchases and Payment


25.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Product Categories and Supplier Categories classes?

A. Each partner can can only purchase products from one supplier category and and for one product category. B. Every supplier and and product category can be managed by several several partners, but no partner manages both. Some partners may manage several product categories, and some partners may manage several supplier categories, but there is no direct link between supplier and product categories. D. Supplier and product product category information information can be used to calculate calculate year-to-date sales for each product/supplier category combination. AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Understan Difficulty: 2 Medium Learning Objective: 06-05 Develop structure models for the purchase and payment process using UML class diagrams. Source: Origina Topic: Purchases and Payment


26.

La Jolla Management Company (LJMC) manages several apartment complexes and earns revenues by renting out the apartments in those complexes. LJMC assigns an agent/manager (employee) to each complex (one manager can manage several complexes) to handle day-today operations, such as maintaining the property, advertising, and signing rental contracts. This case describes the purchase of maintenance service process. Complexes and apartments. LJMC has acquired fifteen and built several more new apartment complexes over the last two years. y ears. It identifies complexes by unique name and apartments by the combination of the complex name and apartment #. LJMC categorizes each apartment according to the number of bedrooms and bathrooms, as well as other factors. There are more than 20 apartment categories at present, each identified by unique category #. Since each complex presents a unique set of luxury appointments and amenities, LJMC determines the standard monthly rental fee by considering both the apartment category and complex, for example 2 bedroom 1 bath apartments (category 21) rent for $1850 per month in the El Dorado Arms complex (where there is no view and the complex is close to a freeway) but the same category apartments rent for $2850 per month in the La Jolla Cove complex (where there is a view of the ocean from most apartments in the complex). Maintenance Jobs. LJMC keeps its apartments and complexes in top condition. The LJMC complex managers monitor the condition of the facilities. Whenever the condition falls below LJMC standards, the managers hire contractors to bring the apartment back up to specification. specifica tion. LJMC classifies each maintenance maintenance job by job type, and the managers match the job type to the contractor type that can best perform the job. The LJMC manager then selects one specific contractor for the job from that contractor type. Each contractor may belong to several contractor types. Each maintenance job involves either one apartment or the common areas of the complex. LJMC tracks the maintenance performed on apartments and complex common areas. LJMC pays its contractors in full at the end of the month for all jobs that the contractor performed during the month. Other Information. Agents, resources, and type images may be recorded in the database before they are linked to other classes. LJMC tracks all its employees in one employee class. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support La Jolla Management Company's process using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes). 6-44 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Attributes

Diagram:

Table listing: Resources Apartment Complex = apartment complex name (PK), address, date constructed, total square footage, employee # (manager) Apartments = complex name + apartment # (PK), apartment square footage, count of rooms in apartment, apartment category (FK) Cash = bank account # (PK), bank account balance Events


Maintenance Job = maintenance job # (PK), projected completion date of job, actual completion date of job, actual cost of this job, job type (FK), employee # (FK), contractor # (FK), complex name (FK), apartment # (FK), check # (FK) Cash disbursement = check # (PK), check date, check amount, bank account # (FK), employee # (FK), contractor # (FK) Agents Contractor = contractor # (PK), contractor name, contractor quality rating, phone Employee = employee # (PK), employee name, employee hire date Type Images Job Type = job type (PK), standard cost for this job type, YTD $ spent on this job type Contractor Type = contractor type (PK), count of this type of contractor Apartment Category = apartment category # (PK), number of bedrooms for apartments in this category, number of bathrooms for apartments in this category, count of available apartments in this category Linking Tables Job Type - Contractor Co ntractor Type = job type + contractor type (PK) Contractor Type - Contractor = contractor type + contractor # (PK) Apartment Category - Building = apt category # + complex name (PK) Job Type - Complex Co mplex = complex name + job type (PK), YTD $ spent on this job type in this complex

AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Appl Difficulty: 3 Har Learning Objective: 06-05 Develop structure models for the purchase and payment process using UML class diagrams. Source: Origina Topic: Purchases and Payment


27.

Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC's processes for leasing trucks, maintaining trucks, and purchasing plants. Inventories. PGC maintains an inventory of trucks of all sizes to support various landscaping requirements (the acquisition of trucks are outside the scope of this case). PGC tracks the trucks by vehicle identification numbers (VINs) and keeps meticulous records on each truck. For example, they track the mileage for each truck on each landscaping job. Additionally, they track the maintenance history for each truck. Each type of o f truck has a different use and hauling capacity, but each truck in a particular truck type has the same use and hauling capacity. PGC also maintains an extensive inventory of plants, ranging from colorful flowers to large trees, so they can address ad dress almost any landscaping requirement on short notice. Since the common name of many plants vary by region, PGC tracks its plant inventory by scientific names (i.e., the Latin names). To manage the plant inventory and ensure that the best plants are applied to job conditions, Heather categorizes all plants by plant type. Truck Leases. PGC leases all its trucks from local dealers. PGC purchasing p urchasing agents negotiate the leases. Each lease involves only one truck due to the state registration requirements. The dealers require a down payment at the time a lease is signed, and then PGC makes payments monthly over the life of the lease. Although PGC usually turns in the trucks at the end of the lease, occasionally, PGC will sign a new lease for an existing truck when that truck provides unusual capability or has relatively low mileage. Truck Maintenance. PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. Then, PGC takes its trucks to the contracted shops when maintenance is required. A PGC purchasing agent approves each maintenance invoice after carefully checking it against the contract terms and assigns a purchase number to track the purchase of maintenance. A PGC cashier pays the truck maintenance vendors monthly for all the maintenance invoices received during the month. Plant purchases. PGC buys its plants in bulk to keep its plant inventory well stocked. Because PGC has an excellent relationship with its plant vendors, it places informal orders by phone. When the plants are delivered and accepted, PGC assigns a purchase number to each receipt. PGC cashiers pay for plant purchases within 30 days of the delivery. PGC cashiers occasionally combine payments if there are multiple deliveries from the sam e vendor within a short period p eriod 6-47 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

of time. Employees. PGC keeps all employee information together (your model should show one Employee class). They track each employee's qualifications according to category: purchasing agent, cashier, landscaping laborer, truck driver, supervisor, etc. An employee is considered qualified when he or she reaches the number of training hours required for that category. However, each employee can hold qualifications for several categories, for example an employee qualified as a purchasing agent could also be qualified as a truck driver. Vendors. PGC keeps all vendor information together (your model should show one Vendor class). However, they classify the vendors by type: truck dealer, truck repair shop, plant p lant vendor, etc. Miscellaneous. You may assume that all agent, resource, and type image information is entered into the database before any process activity takes place. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support PGC's processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes). Attributes:


Diagram:


Table listing: Resources Cash = cash account # (PK), cash account balance Trucks = truck VIN (PK), truck make, truck acquired year, truck mileage to date, truck type (FK) Plants = plant scientific name (PK), plant common name, quantity on hand, plant category name (FK) Events Truck maintenance contracts = truck maintenance contract # (PK), truck maintenance contract start date, truck maintenance contract end date, vendor # (FK), employee # (FK), truck type (FK) Truck maintenance = truck maintenance purchase # (PK), truck maintenance vendor's invoice #, maintenance date, maintenance maintenance amount, vendor # (FK), employee # (FK), truck VIN (FK), check # (FK) Truck leases = truck lease # (PK), truck lease start date, truck lease end date, truck lease down payment amount, truck lease monthly payment amount, vendor # (FK), employee # (FK), truck VIN (FK) Plant purchases = plant purchase # (PK), plant purchase date, check # (FK), employee # (FK), vendor # (FK) Cash disbursements = check # (PK), check date, check amount, cash account # (FK), employee # (FK), vendor # (FK), truck lease # (FK) Agents Employee = employee # (PK), employee name, employee hire date Vendor = vendor # (PK), vendor name, vendor account payable amount Type Images Plant category = plant category name (PK), expected maximum size of plants in this category, light required for plants in this category, average cost of plants in this category Truck type = truck type (PK), truck type use, truck type hauling capacity, average daily cost to use trucks of this type Employee type = employee type (PK), number of training hours to qualify, number of employees qualified Vendor type = vendor type (PK), vendor type description, d escription, count of vendors of this type Linking tables Plant purchases - plants = plant p lant purchase # + plant scientific name (PK), quantity received, price Employee - employee type = employee # + employee type (PK), date this employee qualified


for this type



28.

Pacific Green Company (PGC) provides landscaping services to individual and corporate customers in southern California. Heather F originally founded PGC as a lawn mowing service while she attended graduate school. It became so successful that she delayed her teaching career to concentrate on building the company. This case describes PGC's processes for maintaining trucks. PGC contracts for truck maintenance with local truck repair shops. A purchasing agent will negotiate a truck maintenance contract for each type of truck with a truck repair shop that specializes in those types of trucks. If the purchasing agent cannot negotiate satisfactory satisfactory contract terms, the contracting process terminates. The process then starts over until contracts are in place. When trucks are due for maintenance or repair, a PGC truck driver takes its trucks to the contracted shops. A PGC purchasing pur chasing agent approves each maintenance invoice after carefully checking it against the contract terms and to confirm that the required maintenance or repairs are made. If the maintenance complies and the repairs were satisfactorily performed, PGC assigns a purchase number to track the purchase of maintenance. A PGC cashier then pays the truck maintenance vendors. If the invoice does not comply with the terms of the contract, the PGC purchasing agent returns the invoice for correction. If the repairs are no t satisfactory, the purchasing agent takes the truck back so the shop can perform the repairs or maintenance satisfactorily. : Using the description above, correct the following BPMN activity diagram to accurately depict the PGC truck contracting and maintenance process.


(it is possible that other solutions may also be correct)

AACSB: Analytic AICPA BB: Leveraging Technolog AICPA FN: Leveraging Technolog Blooms: Appl Difficulty: 3 Har Learning Objective: 06-02 Develop an activity model of the purchase and payment process using BPMN. Source: Origina Topic: Purchases and Payment


29.

Integrated Case combining both sales and purchases p urchases processes. processes. Background: When Arnold retired from politics after the state budget crises of 2008, 2009, and 2010 he found that the downturn in the overall economy had affected his retirement plans. Plus, he needs money for his divorce from Maria while his new movies are still in production. So, he decided to open a unique health spa that will cater to movie stars and other wealthy clients. Taking advantage of the historically low mortgage rates, he acquired an impressive estate in Rancho Palos Verdes overlooking the Pacific Ocean and converted it into an expensive spa. After some extensive market research and a number of personal visits to other spas (it was a tough job but someone had to do it), he opened

offering a variety of

activities (such as golf, Pilates, yoga, massage, mud baths, aerobics, weight weight lifting, dodge b all, etc.) so clients have the option of either 1) getting physically fit with the latest in exercise technology or 2) just relaxing in luxury. His spa quickly became extremely successful and he plans to expand to other cities. Arnold realizes that his business needs an accounting system, and he has asked you to analyze his requirements and help him design a system that can grow along with his business. Arnold's business requirements: During your interview with Arnold, he describes his business requirements for his purchasing and sales processes as follows: Spa Packages. We offer our clients a selection of

that changes according to the

time of year and customer demand. For example, we might offer the Spring Getaway Package , the Relaxing Escape from the Economy Package , the Pure Indulgence Package , the Sports Package , and the Steroid-Free Bodybuilding Package . Each package includes several

,

such as weight lifting, aerobics, Pilates, mountain biking, yoga, tennis, golf, various skin ca re therapies, hydrotherapies, body therapies, and massage. The price of each spa package depends on the specific activities included in the package. For example, the Steroid-Free Bodybuilding Package includes includes weight lifting, yoga, dodge ball, and scientifically designed ice baths to restore the muscles. Each activity could appear multiple times in each spa package, for example we could include two rounds of golf in one package. Of course, each activity is included in multiple spa packages. We set the price of each spa package p ackage by first determining what we want to charge for each of the activities depending on the time of year, the products used in the activity, and expected popularity. We then add up the charges for each activity to form the overall price f or the spa package; however, the clients only see one single price for the whole package. To monitor profitability, we track year-to-date sales information for each activity included in any spa package. 6-54 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Sales process (spa visits): Arnold's California Spa emphasizes customer service, of course. Each client makes reservations in advance, and one reservation could schedule several future spa visits (each individual spa visit involves involves only one spa package, but the client could select a different spa package for each visit). When the client arrives for a spa visit, we assign one of our employees to be responsible for the client and direct all the client's activities for that visit. This responsibility only applies to the specific visit. Other employees will also be involved in the spa visit depending upon the activities included in the specific spa package that the client selected. For example, the visit director may conduct a golf lesson for the client while an assisting employee may provide a therapeutic massage for the client's guest (to maintain appropriate discretion, we don't track clients' guests). We expect our employees to provide the highest quality customer service and we plan to hold them accountable. Since all of our employees will be able to be visit directors, we want to track who directs and who assists with each specific visit as well as the number of hours they spend with the client. Since most clients love their experience and want to return, we offer them an opportunity to become members of Arnold's Entourage . Entourage members earn membership rewards based on the number of visits and the amounts spent. Entourage members also get priority reservations and can pay for visits over time with regular monthly payments, where the number of payments depends on their membership group: bronze, silver, or gold. Since an Entourage member could visit several times while also making payments for prior visits, each client payment could apply to several spa visits. Clients that are not Entourage members must must pay pa y for each spa visit in full at the time of the visit. To plan for future marketing, we track year-to-date spending for each combination of Entourage Group and activity, so we can see which activities appeal to which membership group. Product Inventory and purchasing. We maintain an inventory of products —such as sports gear, towels, robes, shampoos, golf balls, body-wrap body -wrap material, seaweed, massage oils, bodybuilding supplements, raw fruit juices, and vitamins — that we use in the spa visits. We record the quantity and cost of each product used in a spa visit as well as the total costs for each visit to determine profitability. For planning, we also track which products are used in each activity, although many products are used in multiple activities. We esti mate the quantity and cost of each product used in each activity, which then allows us to estimate the overall cost of each activity, so we can decide what to charge for the activity when it is offered in any spa package. We buy our products from a number of vendors. We've already worked out agreements for them to deliver products on a regular basis. We record purchases by purchase number when they deliver the products. All our vendors require payment in full within 30 days after we 6-55 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

receive the products, but depending on timing, we may issue one check to pay for multiple purchases from a vendor. Other information. We record information about activities before they are offered in any spa package, and we add new spa packages before any client purchases them. We have a payroll service that handles all our payroll needs, so you don't need to consider payroll in your analysis. We assign each employee an employee number and a job title, like "master masseuse", "yoga instructor supervisor", "hair styling specialist" and "the guy who will pump you up." However, every employee can perform several different jobs at the spa, so we keep all the employee information in one set of records. We only use the title to impress our clients and not for any real business purpose (we don't categorize employees by employee types). We record information about all agents, resources, and type images before they are linked to other classes. : 1) use the information above and the list of attributes below to draw a UML class diagram showing the classes, associations, and multiplicities, 2) prepare a listing of the tables necessary to support Arnold's California Spa processes using all the attributes. Name each table and clearly identify primary keys with PK and foreign keys with FK. List your tables in the following order: RESOURCES, EVENTS, AGENTS, TYPE IMAGES, and LINKING. Use only the following list of attributes (remember that there should be no classes without attributes).

Diagram: 6-56 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Table listing: Resources Products = Product # (PK), Product description, standard cost, quantity on hand Cash = Cash account # (PK), Cash account balance Events Purchase = Purchase # (PK), Purchase date, Employee # (FK), Vendor # (FK), Check # (FK) Cash Receipt = Cash receipt # (PK), Cash receipt amount, Cash receipt date, Cash account # (FK), Employee # (FK), Client # (FK) Cash Disbursement = Check # (PK), Check amount, Check date, Employee # (FK), Vendor # (FK), Cash account # (FK) Spa Visit = Spa visit # (PK), Spa visit date, T otal labor hours for this spa visit, client contact hours for this employee in this spa visit, Employee # (director) (FK), Client # (FK), Spa Package Name (FK), Spa Reservation # Spa Reservation = Spa Reservation # (PK), Spa Reservation Date, Client # (FK), Employee # (FK) Agents Clients = Client # (PK), Client name, Year-to-Date (YTD) Sales $ For This Client, Entourage Group (FK) Employees = Employee # (PK), Employee name, Employee title Vendor = Vendor # (PK), Vendor name 6-57 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Type Images Activities = Activity name (PK), Activity description, Planned cost of this activity, Year-to-date (YTD) sales $ for this activity Spa package = Spa package name (PK), Spa package p ackage begin offering date, Spa package end offering date, Spa package price Entourage Group = Entourage Group (PK), Months to pay for members in this Entourage level, YTD Sales $ for clients in this Entourage Group Linking Tables Spa Package - Activities = Spa Package Name + Activity Name (PK), Price of this activity in this spa package Product - Vendor = Product # + Vendor # (PK), YTD purchases for this product with this vendor Spa Visit - Employee = Spa Visit # + Employee # (PK), client contact hours for this employee in this spa visit Product - Spa Visit = Product # + Spa Visit # (PK), Cost of this product pro duct used in this spa visit, Quantity of this product used in this spa visit Purchase - Product = Purchase #, Product #, Quantity of this product received on this purchase, Cost of this product received on this purchase Product - Activity = Product # + Activity A ctivity Name (PK), Quantity of this product planned for use in this activity Entourage Group - Activity = Entourage Group + Activity Name (PK), YTD Sales $ f or this Entourage Group and activity Spa Reservation - Spa Package = Spa Reservation # + Spa Package Name (PK) Spa Visit - Cash Receipt = Visit # + Cash Receipt # (PK), Amount of this cash receipt applied to this spa visit



TBChap006

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