Consider the Business Processes Described Below

question 36

Essay

Consider the business processes described below.For each one, indicate which level of the capability maturity model most clearly applies.Circle the phrase that led you to your choice.
a.Joe tried various ways to process purchase orders to see which one would work best.
b.Marie, an independent consultant, was trying to develop a better way for her client to monitor inventory.She interviewed several employees and looked at the company's historical records for guidance.
c.Mark led monthly discussion groups focused on how to improve various business processes throughout the company.
d.Mark prepared a list of common documents used in his job as an accounts receivable clerk; the list also indicated how many copies of each document were normally required.Mark kept the list in his desk.
e.The CEO of Marie's client explained to her that the new inventory monitoring system could cost no more than $500 per month to use.

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Definitions:

Debits and Credits

Accounting entries that either increase or decrease accounts on a company's balance sheet and income statement.

Posting Process

The act of transferring entries from a journal to the corresponding accounts in the ledger as part of the accounting cycle.

Journal

A detailed record of all financial transactions, used as the primary source for all accounting entries.

Ledger

A comprehensive collection of a company's financial accounts, transactions, and balances over a period.