Question

Difficulty: HardComputerized Data Processing and Business Records Management

A large-scale trading enterprise accumulates all customer sales receipts throughout the business day and runs a single automated computer program at midnight to update its main inventory records. Which computerized data processing method is the firm using, and what is its primary characteristic?

  1. Batch processing, where transaction records are collected over a period and processed together to update master files.Answer
  2. B
    Point of sale processing, where merchant payment terminals automatically dispense physical cash to update real-time stock levels.
  3. C
    Credit note processing, where home trade adjustment documents act as the central electronic storage media for transaction files.
  4. D
    Articles of association processing, where internal company governance rules dynamically organize database records.

Answer

Batch processing, where transaction records are collected over a period and processed together to update master files.
Batch processing involves collecting source documents or transaction data over a specified period (e.g., daily or weekly) and running them together as a batch to update master records. In the given scenario, accumulating sales receipts during the day and executing a single update program at midnight is the textbook application of batch data processing.

Step-by-Step Solution

1
Analyze the operational scenario
The firm accumulates data (sales receipts) throughout the day without immediate updating.
Identifying when and how transaction data is entered and processed determines the processing mode.
2
Evaluate the execution method
A single program runs at a scheduled time (midnight) to update master files at once.
Accumulating transaction records into a group to be processed in a single run is the defining feature of batch processing.
3
Select the matching computerized processing concept
Batch processing fits the described workflow exactly.
Unlike real-time processing which updates records instantly per transaction, batch processing delays updating until a gathered batch is processed together.

Key Concept

Batch Processing in Computerized Business Data Systems
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