Accounting

HA 2042 – Accounting Information System

Assignment – 2 (Marks: 20)

Due date: Week 10

Tasteless Tea Company: A Comprehensive Revenue Transaction Cycle Case Study

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The case study involves analysing three different types of revenue cycle transactions-sales by a direct sales force, retail store sales, and e-commerce website sales.

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(Each group also submits a written report containing their system recommendations, including responses to a list of case study questions and requirements).

THE CASE

The Tasteless Tea Company (hereafter, Tasteless) is a market leader in the expanding U.S. market for tea (processed tea leaves), tea-related consumer beverage products, and tea-related desserts. Tasteless produces and sells tea bags, tea leaves, iced tea drinks, and a line of premium tea-based ice creams, as well as an innovative combination of premium tea product lines. Tasteless maintains its corporate headquarters in Danbury, Connecticut.

The company's business model is to market its products directly to retailers, including supermarkets and restaurants, and to individuals using a direct field sales force. For supermarket and restaurant chains, the sale typically is made to the purchasing department/buying division of the retailer. These sales often involve a significant amount of field testing by the direct sales force, giving Tasteless a competitive advantage. Tasteless heavily advertises its products in trade magazines and attracts individual sales through advertising in media such as health care magazines. Individual clients include CEOs of Fortune 1000 companies, as well as individuals from coast-to-coast. Management's objective is to establish Tasteless as the most recognized and respected...