1. Do you think transaction processing systems differ significantly between service and
manufacturing industries? Are they equally important to both sectors?
The Transaction Processing System is a sub-system of the accounting information system which
manages and records mass transactions of the firm’s daily operations and activities. It collects and
records all financial information of the firm and ensures its flow to all operations staff. Service
industries and manufacturing industries have different nature of transaction. For an instance, there is a
specific product for manufacturing while in service, there is no actual tangible product. Whilst in the
processing of a product, manufacturing industries go from raw materials to work-in-process to
finished product and service industries roots from customers wants and desires and don’t have actual
product on-hand. Also, manufacturing industries invest more on equipment and machineries to
produce a product while service industries invest more on human power or human labor to render
services. Therefore, there are significant difference between the transaction processing systems of
service industry to transaction processing systems of manufacturing industry.
Yes, they are equally important to both sectors. The transaction processing systems follows a step
of collecting and recording financial information and financial effects of the firm’s transaction based
on the industry the firm belongs to. Since there are significant difference in the transaction processing
systems of the industries.
2. If accountants are viewed as providers of information, then why are they consulted as system
users in the systems development process?
The accountants are consulted as system users in the system development process to achieve an
effective internal system, and the needs of the accounting information users. The accountants are not
only involved in one stage of developing the system but in all stages of system development. Since
each stage has its own specificity which is unlikely to other stages. They are also needed so the
implementation of accounting information system will be easy. And most importantly, the
accurateness and ensuring reliability in financial reporting of accounting information.
3. Why is it important to organizationally separate accounting function from other functions of the
organization?
It is important to organizationally separate accounting function from other functions of the firm
because accounting departments keep record of daily activities of each department and its effects to
the firm’s financial position. The accounting department should keep their integrity in keeping all the
records of the firm’s monetary resources. And accounting information are very crucial to the firm, the
records and all the document must remain confidential to other departments.