Consider the Following Short Case as You Respond to the Next

question 45

Multiple Choice

Consider the following short case as you respond to the next question: ELM Corporation sells durable medical equipment, such as wheelchairs and hospital beds; each salesperson at ELM specializes in a specific type of medical equipment. When a prospective client comes into their store, a greeter does a preliminary needs assessment to determine what type(s) of equipment the client requires. Based on that preliminary assessment, the greeter will match the client with a member of the sales staff. The staff specialist does a more detailed needs assessment, the results of which go into a computerized database along with the client's name, address, phone number and other related information. After the needs assessment, the staff specialist determines the client's budget, as well as whether the client has insurance coverage for the desired equipment; clients without insurance coverage receive a 10% discount on all equipment purchased up to $1,000, and a 20% discount for any sales over $1,000. The staff specialist makes recommendations based on the client's needs and budget. If the client chooses to purchase from ELM, the store fills out any necessary insurance paperwork and collects the client's portion of the bill. For example, if an insured client purchases a wheelchair with a price of $2,000 and the insurance covers 80%, ELM collects $400 from the client at the time of the sale. ELM accepts cash, checks and major credit cards from clients. Insurance payments go directly to ELM's bank account and normally arrive within 60 days of the sale. If the client needs more than one type of durable medical equipment, the first staff specialist introduces the client to a subsequent staff specialist, who repeats the process until all the client's equipment needs are met.Which of the following statements about documentation for ELM's sales / collection process is most true?

• A)Agents in a REA model are likely to be column headings in a systems flowchart.
• B)A leveled set of data flow diagrams will likely include one level for each agent in a REA model.
• C)Both A and B
• D)Neither A nor B

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Definitions:

Psychosocial Stages

A theory proposed by Erik Erikson, which posits that individuals go through eight developmental stages, each involving a specific conflict that must be resolved.

Erikson

A developmental psychologist known for his theory on the psychosocial development across eight stages from infancy to adulthood.

Industry

The production of goods or related services within an economy, or a specific sector of production or trade.

Irreversibility

The cognitive incapacity in early childhood to understand that actions, once performed, can be undone to return to the original state.