Stans Southern Barbeque Supply Store orders mass-produced barbecue products from various suppliers. Stans maintains information about a

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Stan’s Southern Barbeque Supply Store orders mass-produced barbecue products from various suppliers. Stan’s maintains information about a contact person at each supplier along with all required address information. Each purchase order has the order number, date, tax, and total. Purchase orders also contain the following information for each product ordered: stock number, description, and price. The manager of Stan’s places orders by fax several times a day, whenever he notices that an item is running low. Some suppliers fill each individual order separately. Others, however, consolidate orders and fill all of them in one weekly delivery. Stan's suppliers never make partial shipments; if they are out of stock of a certain item, they wait until they obtain that item and then ship the entire order. Some suppliers require payment at the time of delivery, but others send Stan’s a monthly statement detailing all purchases during the current period. Two suppliers allow Stan’s to make installment payments for any individual purchase orders that exceed $20,000.

Draw an REA diagram with cardinalities for the expenditure cycle of Stan’s Southern Barbeque Supply Store.


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Accounting Information Systems

ISBN: 978-0133428537

13th edition

Authors: Marshall B. Romney, Paul J. Steinbart

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