Reading review problem.When I grew up in St. Louis, Missouri, my mom would often take me and my brothers to Dairy Queen if we’d been especially well behaved. (I’ll leave it to you to wonder how often that happened!) But, when I moved to southern California in 1983, I found that Dairy Queen stores were few and far between. So, you can probably imagine how happy I was to find one only a few miles from my home. As a boy, my only interest in visiting was the ice cream; I still enjoy the ice cream today, but I also think about how their accounting information system works whenever I visit.
Dairy Queen is a franchised operation; their Web site ( www.dairyqueen.com) outlines five steps to owning a franchise. They are
i. Complete a form to request information from the corporate office.
ii. Start the application process.
iii. Have the application reviewed; if approved, select a site for the store.
iv. Begin construction and participate in a management training program.
v. Open the new store.
The whole process, according to the Web site, takes less than a year in most cases. As you’ll learn in this chapter, most accounting information systems have five parts: inputs, processes, outputs, storage, and internal controls.
a. Does Dairy Queen need an accounting information system? Why, or why not?
b. Suggest one example of each generic AIS element within the context of Dairy Queen.
c. How might this case be incorporated in other accounting courses, such as financial accounting, cost accounting, and taxation?
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