K Cannon, Inc., is a manufacturer of portable MP3 players. The company purchases
ID: 2599206 • Letter: K
Question
K Cannon, Inc., is a manufacturer of portable MP3 players. The company purchases raw materials such as plastics and computer chips for its conversion cycle. The following describes K Cannon’s purchases and payment procedures.
John, the purchasing department clerk, monitors raw material inventory levels and prepares purchase requisitions when purchases are necessary. Purchase requisitions are sent to the purchasing agent, who prepares six copies of a purchase order. Two copies are sent directly to the vendor. One is placed in an open purchase order file in the purchasing department, and one is used to post to the purchases journal. Each week, the purchasing department clerk prepares a journal voucher from the purchase journal and sends it to the general ledger department for posting.
Upon receiving the raw materials, the receiving department clerk creates five copies of the receiving report. One copy is sent to the AP department. Two copies are sent to the purchasing department, where one is filed and one is used to update the inventory records. The final copy is filed in the receiving department with the purchase order and packing slip. Suppliers send their invoices to the AP department, where they are used to update the AP subsidiary ledger.
In the cash disbursements department, Larry receives the information from the AP department, such as the purchase requisition, purchase order, receiving report, and invoice. He then prepares and signs the checks for the suppliers. After preparation of the checks, the supporting documents are sent back to the AP department. Each week, Larry prepares a journal voucher and sends it to the general ledger department for posting.
Prepare the context diagram and the level 0 DFD to document K Cannon’s expenditure cycle. Hint: refer to Figure 13-2 on page 380.
My Question: What is the context diagram and the level 0 DFD?
Explanation / Answer
DFD TEXT DIAGRAM
A context diagram is a top level (also known as "Level 0") data flow diagram. It only contains one process node ("Process 0") that generalizes the function of the entire system in relationship to external entities. DFD Layers. ... Draw the context diagram first, followed by various layers of data flow diagrams. DFD Levels
EXAMPLE OF DFD
CONTEXT DIAGRAM AND LEVEL 0 DFD IN CANNON'S EXPENDITURE CYLCE (cannot paste the flowchart)
John, the purchasing clerk generates the purchase requisition
Sent to purchasing agent who prepares 6 copies of PO
2 copies sent to vendor
*One copy sent to AP dept
Purchase Invoice sent to AP which updates AP subs ledger
Posts the purchase Journal every week from purchase orders
2 copies sent to Purchasing dept
· One placed in file, Posts the General Ledger from purchase journal
· Other used to update inventory records
Receiving clerk, receives goods and prepares GRN 5 copies.
Final filed with PO and Packing slip
Larry in cash disbursements pays AP
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