Reference no: EM132004893

Question - Elite publishing Company has established Business Book Club, Inc. (BBC) a subsidiary that operates as follows: BBC's editors select from among recently published business books those they believe will be most interesting to business people. BBC will purchase these books in large quantities at approximately 40% of list price and then sell them to their club members at approximately 75% of the list price.

Both direct mail and advertisements in selected publication are used to solicit new customers. The advertisements offer an introductory membership bonus whereby new members who purchase one book will receive four free titles. Each month, club members receive a list of new selections and a book order form. For every four books purchase, members earn one free book.

You have been called upon to design a computerized billing and book inventory system for BBC. The advertising manager want to know which advertising media are most effective, the credit manager wants to know which accounts are more than 90 days past due, and the editors want to know which books are best-sellers for the club.

Required:

• Identify the input transactions that this system must process and the output documents and reports that the system should b designed to produce.

• Describe how information technology (IT) can be used to maximize efficiency of sales order entry, shipping, billing, and cash collections.

• Describe the control procedures that should be included in this system.