Question

In expenditure, what would be the differences in the REA models for the purchase-payment of raw materials vs. the purchase-payment of services (e.g., building utilities, airline tickets for employees)?

In expenditure, the time difference between Request Inventory and Order Inventory is reflected by which of the 4 cardinality symbols connecting the two events?

Answer 1

Answer 1:- the purchase-payment of raw materials would include

Resources: inventory, cash

Events: order inventory, receive inventory, disburse cash

The purchase-payment of service would include

Resources: service, cash

Events: acquire services, disburse cash

Answer 2 :- the time difference is reflected by the 0 minimum associated with the order inventory event. Request are made before inventory is ordered, so there can be request with 0 associated orders.