Discuss the fundamentals risk and control issues associated with fixed assets that are different from raw materials and finished goodsTrainor (2007) outlines that, due to the high capital invested in the acquisition of the fixed asset and their extended timeframe of usage, they have greater risks of purchase and usage in the attempts to increase the efficacy of the organization. Some of the risks involved include inaccuracy in periodic reporting; scrapped fixed assets remain in the book, and the inefficacies in matching capital to the financial records. On the other hand, raw material and finished goods are fast moving products, which are easy to trace and assess. The risks call for different control measures when making investment decision about fixed assets.

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The control measures include authorization, supervision, and independent verification checks. The procedure ensures that an organization makes a comprehensive analysis of the merits and demerits involved when purchasing fixed assets. In a big group, fixed assets acquisition follows a preset system. Supervision and verification increase the accuracy in the appraisal of future investment ideas and depreciation and appreciation of the fixed assets.

Explain why traditional cost allocation methods fail in a computer-integrated manufacturing environment
The traditional cost allocation methods fail in Computer-Integrated Manufacturing (CIM) due to the differences in production approaches employed. According to Mishra and Vaysman (2001), the traditional cost allocation systems matched the phase production with segmented value and returns evaluation for the produced goods. The major aspect of traditional costs allocation methods is their focus on the distribution of overhead costs to the products manufactured. In the end, the total cost of good production included all the indirect costs. However, with the CIM production, the organization seeks to achieve full efficiency thus calling for costs analysis of an entire production cycle. The method makes the costs of production vulnerable to other significant factors including the production scale, products mobility. The traditional cost allocation focused primarily on machine and human capital hours. Therefore, when using the CIM environment, the traditional methods of cost allocation would be insufficient.

Describe the role of the journal voucher in both batch and real-time GL system
Journal Vouchers are documents used by organizations to allow information to be included in the books of accounting (Supple, 2009). In other cases, organizations use vouchers to authorize actual transactions, which later appear in the accounting books. However, due to the difference in the operation methods, the usage of vouchers differs, in the attempt to meet the immediate need of the nature of the transactions. In Batch data processing, the use of journal vouchers to fill in the data from general, accurate, and one-direction vouchers which increase the accuracy of the results produced by the batch systems. A high accuracy of the transaction data increases economic competence in an organization. While most organization use Batch information processing, it is vital to have Real-Time GL systems that track immediate data and offers insights on the necessary changes. The inclusion of journal vouchers in the development of the systems increase its accuracy in Complex Event Processing (CEP), and Operational Intelligence (OI).

How are OLTP and OLAP different? Provide some examples and explain
Online Transaction Processing (OLTP) systems focus on the transaction of a particular department. The system often has a higher traffic of inline transactions mostly with insert, update, and delete format. The design of the OLTP seeks to ensure data integrity in multiple transaction systems as well as provide efficiency and transactions speed (Olavsrud, 2016). An automated teller machine is a perfect example of the OLTP processes that keep current real time data for future retrieval and offer immediate responses to requests.

On the other hand, Online Analytical Processing (OLAP) is a more complicated system that focuses on Multi-Dimensional Analysis using a thread of data. AN example of an OLAP system is an internal sales strategy where the marketing team uses annual sales to predict the sales trend. In this case, the organization does not rely on the current data but make a correlation from previous data.

    References
  • Mishra, B., & Vaysman, I. (2001). Cost-System Choice and Incentives–Traditional vs. Activity-Based Costing. Journal Of Accounting Research, 39(3), 619-641.
  • Olavsrud, T. (2016). SnappyData brings together OLTP, OLAP and Spark. Cio (13284045), 1.
  • Supple, K. F. (2009). Tips for Effective Management. School Business Affairs, 75(10), 34-37.
  • Trainor, C. K. (2007). Fixed Assets: Are Yours Broken?. American School Board Journal, 194(4), 62.