Anderson Ltd has a new CEO who is keen on improving process cycle times. She has reviewed

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Anderson Ltd has a new CEO who is keen on improving process cycle times. She has reviewed the process documentation for the expenditure cycle and is asking you to stop accumulating purchase requests before determining the demand for goods as it appears to be slowing the process down.

(a) Should you agree to stop accumulating the purchase requests? Why or why not? (LOL LOs;"205)

(b) If you would not agree to stop accumulating purchase requests, how would you explain this decision to the CEO? (LO1, LO5)

(c) If you would agree to stop accumulating purchase requests how would you justify this change to the purchasing manager? (LO1, LO5)

(d) If you stop accumulating purchase requests would you need to measure the cycle performance differently? (LO1, LO6)

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Accounting Information Systems Understanding Business Processes

ISBN: 9781742165554

3rd Edition

Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer

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