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 Cannons 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 Cannons expenditure cycle. Hint: refer to Figure 13-2 on page 380.

My Question: What is the context diagram and the level 0 DFD?