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Unfortunately, management failed to update their purchasing system to account for the following two changes: CHANGE #1: Minimum order quantity to receive a 10% discount
Unfortunately, management failed to update their purchasing system to account for the following two changes: CHANGE \#1: Minimum order quantity to receive a 10% discount is 900 units for Raw Material A (used to be 500 for old supplier). Monufocturoo Ltd usually purchases between 400 and 1100 units of Raw Material A per month. Raw Material A does not spoil or become obsolete. Q3.1 3 Points Would this be considered a systematic or random error? Explain why. Enter your answer here Q3.2 3 Points How could this data problem affect reports generated during the GL\&FR cycle, including the information quality of the financial statements? Q3.3 6 Points CHANGE \#2: While prices per unit of Raw Material B are the same as those charged by the old supplier, Raw Material B is packaged differently: it comes in boxes containing one hundred (100) units as opposed to fifty (50) units (old supplier). Manufacturoo Ltd's purchasing system automatically generates a purchase requisition for 30 boxes once the reorder point of 5 boxes has been reached. Raw Material B does not spoil or become obsolete but is expensive to store - due to its large size. How could this data problem, if not detected, affect the performance of the purchasing cycle if the purchase requisition is automatically converted to a purchase order and sent to the supplier? In your answer discuss the implications on financial and managerial reports and related information quality goals
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