Managerial Decisions

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of the conversion process, an event that records the transfer of raw materials into work in process. Raw materials inventory For a manufacturing company, the inventory acquired for us in the manufacturing process. Work in process inventory For a manufacturing company, the value of raw materials, direct labor, and manufacturing overhead in production but not yet finished. Assurance Independent, professional opinions that reduce the risk of having incorrect information. Business intelligence A computer-based technique for accumulating and analyzing data from databases and data warehouses to support managerial decision making. Data mart A subset of the information from the data warehouse to serve a specific purpose. Data mining A process of using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously known. Data warehouse A collection of information gathered from an assortment of external and operational databases to facilitate reporting for decision making and business analysis. Decision support system(DSS) A computer-based information system that facilitates business decision-making activities. Digital dashboard A display to track the firm’s process or performance indicators or metrics to monitor critical performance. XBRL(eXtensible business reporting language) An open, global standard for exchanging financial reporting information. XBRL Global Ledger Taxonomy (XBRL GL) Serves as a ledger using the XBRL standard for internal purposes. XBRL instance documents A document containing XBRL elements. XBRL specification Provides the underlying technical details of what XBRL is and how it works. XBRL style sheet Adds presentation elements to XBRL instance documents to make them readable by people. XBRL taxonomy Defines and describes each key data elements XML(Extensible Markup Language) Open, global standard for exchanging information in a format that is both human- and machine-readable. | 3The purchases and payments process would link to the conversion process through the raw

material resource, since purchases increase the quantity of raw material on hand. The conversion process would link to the sales and cash receipts process through the finished goods inventory resource, since the conversion process increases and the sales process decreases finished goods quantities on hand. All three processes also share internal agents, employees. | Internal Databases might include the following: General Ledger Loan Portfolio (Including loan products) Customer Database (and related demographics) External Databases might include the following: General Economy Information (GDP, Interest Rates, etc.) Focal Customer Demographics Banking/Finance Industry Information Data warehouses are made for different purposes. The databases proposed above presume an interest in selling new loan products to existing and potential customers. We get profitability information of the various loan products from the internal databases. We also get information on potential customers, economic and industry trends from the external databases. In sum, these databases can spot trends and opportunities for a bank. | a. How is XBRL more efficient for the firm that reports its business performance?

Does the use XBRL GL in a firm’s accounting software make XBRL more or less efficient than when XBRL GL is not used? ?? XBRL in and of itself may not make the reporting company more efficient in how it codes the data. However, the ultimate ability of XBRL to put the XBRL database in one location and let others access it for their particular needs will make it more efficient. The use of XBRL GL makes it so the company will only have to code its information once directly into the XBRL GL package. | b. How is XBRL more efficient for those using its business reports for regulator,

investing or other purposes??? The users (such as regulators, investors, etc.) simply need to develop a style sheet to extract their reports from various companies via the GL. Developing one style sheet for multiple companies is much more efficient than inputting specific numbers from many company and then analyzing them separately | What are the basic requirements of a relational database? The approach of relational database imposes requirements on the structure of tables: • The Entity Integrity Rule: the primary key of a table must have data values (cannot be null). • The Referential Integrity Rule: the data value for a foreign key must either be null or match one of the data values that already exist in the corresponding table. • Each attribute in a table must have a unique name. • Values of a specific attribute must be of the same type. • Each attribute (column) of a record (row) must be single-valued. This requirement forces us to create a relationship table for each many-to-many relationship. • All other non-key attributes in a table must describe a characteristic of the class (table) identified by the primary key. | • XBRL Global Ledger is reporting independent. It collects general ledger and after-the-fact receivables, payables, inventory and other nonfinancial facts, and then permits the representation of that information using traditional summaries and through flexible links to XBRL for reporting. • XBRL Global Ledger is system independent. Any developer can create import and export routines to convert information to XBRL GL format. This means that accounting software developers need only consider one design for their XML import/export file formats. Application service providers can offer to supply XBRL import and output so end-users can more easily use their own data. Companies developing operational products, such as point of sale systems or job costing, or reporting tools can link with many accounting products without needing specialized links to each one.

• XBRL Global Ledger permits consolidation. Popular low-end products and mid-market solutions are not designed to facilitate consolidating data from multiple organizations. XBRL GL can help transfer the general ledger from one system to another, be used to combine the operations of multiple organizations, or bring data into tools that will do the consolidation. • XBRL Global Ledger provides flexibility, overcoming the limitations of other approaches such as electronic data interchange (EDI). It offers an extensible, flexible, multinational solution that can exchange the data required by internal finance, accountants, and