ACCT3313 assignment




GCO rents DVDs and DVD players (players) on a
short term basis to airline passengers through locations at every large commercial airport
throughout the world. A passenger can
rent a DVD in any one of 50 popular languages and/or player at one location and
return it at any other GCO location
anywhere in the world. GCO rents a
player containing special batteries which provide up to 24 hours of continuous viewing
operation without recharging. This is
very convenient on long international flights. The DVDs are unique in that the
customer specifies the movie and the language in which he/she prefers the dialogue
to be recorded. The GCO system copies the movie with the dialogue in
that language to a blank DVD.

Before a customer can rent a DVD or player,
he/she must register with GCO. Registration costs $25 and each customer must
hold a valid major credit card in his or her own name to be eligible to join,
as all payments must be made by credit card. To register, a customer enters the
following information into the system at
a terminal which is available at all GCO locations:

First name

Last name

Date of birth

Current date

Street address


State (or equivalent

Zip code (or equivalent)


Phone number

Major credit card type

Credit card number

Drivers license number (or equivalent)

Language in which the customer wants

information to be provided to him/her

The central GCO system in Miami, FL verifies the credit card and the customer
information through the accessing of a number of online databases. If approved, the customer is directed to sign
a digital signature pad. The system then
prints out a laminated GCO registration
card for the customer. The account
information becomes available online at all GCO locations throughout the world through the
central information system at corporate headquarters in GCO. Now the customer may check out and return DVDs
and players at any GCO location in the
world. If the registration is disapproved for any reason, a message informs the
customer of this fact through a message on the terminal screen.

Customers are
limited to a total of four DVDs being outstanding at any one time. To rent a DVD, the customer browses the movie
list at a GCO location. The customer
inserts the membership card into the terminal at the GCO location.
A screen is pulled up containing that customer’s information, including any
balance due. If there are any late
charges, they must be paid before any additional DVDs may be checked out. The screen also prompts for the serial
numbers of up to four DVDs to be checked
out, along with the language that the customer wants the dialogue to be in for
each movie. As indicated earlier, the maximum number of DVDs that can be outstanding
to any customer at any one time is four from
all GCO locations. The system keeps
track of the number of outstanding DVDs per customer. The system computes the balance due,
including any outstanding late charges. The customer inserts his or her credit
card into the terminal, enters any required codes (such as PIN) and authorizes
the transaction. Once the transaction is
approved for the credit card, the system copies the movie(s) to blank DVD(s) in
the language(s) specified by the customer.
When the copying process is complete, a message appears on the
attendant’s terminal directing him/her to remove the DVDs from the DVD
copier. The attendant then places each
DVD in a jewel case and delivers them to the customer.

When the
customer returns the DVDs at any location, he/she places them in a return bin. At
a convenient time, the attendant removes them from the return bin and enters
them into the computer system as returned so the customer will not be charged
for additional time. If the DVDs are late, a late charge is computed and added
to the customer’s account balance.
Later, the attendant erases the movie recorded on the DVD so the now
blank DVD can be reused.

The checkout
procedure for players is similar to that for renting DVDs, except that the
customer has to sign a contract (because of the high value of the player). The customer inserts his/her registration
card into the terminal, and the customer record is pulled up. The amount due is generated by the system. Then
the attendant enters the number of the player and a contract is generated. The customer signs a contract via an
electronic signature pad. The electronic contract is maintained online in an
active contract file. The player is
retrieved from storageby the attendant and given to the customer along with a
copy of the contract. When the player is
returned, the contract is accessed electronically, the return is annotated on
the contract and a copy is provided to the customer. The annotated electronic
copy of the contract is moved electronically from the active contract file to an
inactive contract file. The customer
account is updated with the return information, and any late charges are added
to the customer balance. The payment by
credit card is handled just as with the rental of DVDs.

GCO uses an online real time processing system. As each transaction is entered, from any
location in the world, the master files are updated instantaneously at the
central computer system located at the GCO corporate headquarters in Tulsa.

The corporate information
system generates 4 reports for management each week. The first report lists all
the unreturned DVDs and players alphabetically by customer name. One copy of this report is sent to the
President and another copy to the Controller. The Controller department uses
this report to manually prepare letters and send them to customers who have not
returned items. The letter urges them to return the items to any GCO location
as soon as possible and spells out current and future charges and actions. If the items have not been returned after two
weeks from the date of the letter, the account is forwarded to a collection
agency, the customer is dropped as a member, and notification is provided to the
credit bureau (this affects the customer’s credit record).

The second
report shows profitability by each airport location, geographic region and
system-wide. One copy of this complete report
is sent to the President, the Controller and the Vice President of Marketing. A
report for each region and airport within the region is sent to the regional
manager for the respective region.

The third
report lists the revenue generated by each movie title for the week, by
language, airport location, region and
system-wide. One copy of this complete report is sent to the President, the
Controller and the Vice President of Marketing. A report for each region is sent to the
regional manager for the respective region.


1. Prepare a 3 column table, with the columns
labeled from left to right as follows:

Processes and Outputs. Identify each of
the processes involved in the GCO system along with the inputs and outputs
associated with each process.

2. Prepare a system flowchart, following good flowcharting
practices including annotations, documenting the GCO system as described above. Use VISIO or another flowcharting tool of
your choice.

3. Included in the system description are a
number of items which are illogical, represent inefficient operations, violate good internal control procedures or just violate
good business practices. I want you to
identify these items and make recommendations for modifying the system to correct
them. This may include, but is not
limited to, recommending system design changes or additional reports for
management to improve decision-making.
Be sure to justify your recommended changes.

4. Provide a modified 3 column table and system
flowchart (items 1 and 2 above) reflecting your recommended changes from item

5. If you have to make any assumptions (you
will), be sure to document them and justify why you made them.

6. Prepare a
title page with the class number & name along with your name and staple the
package in the upper left hand corner. A
cover is not required nor desired.


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