A car dealer lets customers use a loaner for free when the service will take more...
A car dealer lets customers use a loaner for free when the service will take more than one day to complete. For just the loaner operation, what would be the event(s) in the REA diagram? What would be the resource(s)?
Why is depreciation not represented as an event in an REA data model?
Homework Answers
Answer:
Depreciation is not modeled as an event in the REA diagram because it is an accounting concept that arbitrarily allocates the cost of an acquired resource to different fiscal periods. Periodic depreciation is simply a calculation based on a formula (depreciation method) and a set of assumptions (estimated useful life, salvage value, etc.). Information about the formula and assumptions is stored in the resource entity for use in calculating periodic depreciation charges, but the calculation process itself is not an event, just as the processes of calculating the total amount of a particular sales transaction or the amount of an employee’s paycheck are not modeled as events.
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A car dealer lets customers use a loaner for free when the
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In five years, Kent Duncan will retire. He is explorong the possibility of opening a self-service car wash. The car wash...
In
five years, Kent Duncan will retire. He is explorong the
possibility of opening a self-service car wash. The car wash could
be managed in the free time he has available from his regular
occupation, and it could be closed easily when he retires. After
careful study, Mr. Duncan determined the following:
a. A building in which a car wash could be installed is available under a five-year lease at a cost of $5,700 per month b. Purchase and installation...
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In
five years, Kent Duncan will retire. He is explorong the
possibility of opening a self-service car wash. The car wash could
be managed in the free time he has available from his regular
occupation, and it could be closed easily when he retires. After
careful study, Mr. Duncan determined the following:
a. A building in which a car wash could be installed is available under a five-year lease at a cost of $5,700 per month b. Purchase and installation...
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This case is in the book, Operations and Supply Chain
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