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Difficulty: EasyData Processing Methods in Accounting

A manufacturing firm accumulates all employee job time-sheets throughout the week and computes the total payroll expenses in a single execution run at the end of every Friday. Which accounting data processing method is described in this scenario?

  1. Batch processingAnswer
  2. B
    Real-time processing
  3. C
    Online processing
  4. D
    Manual bookkeeping

Answer

Batch processing
Batch processing is the data processing method where transactions are collected into groups over a given period and processed together as a single batch. Payroll calculation at the end of a weekly or monthly period is a classic application of batch data processing.

Step-by-Step Solution

1
Identify the key operational characteristic in the scenario
Transaction data (time-sheets) is collected over time and processed together in a single run at periodic intervals (weekly).
Analyzing how and when data enters the processing stage determines the processing method.
2
Match the characteristic with accounting data processing methods
Accumulating transactions into groups (batches) for periodic execution defines batch processing.
Batch processing is cost-effective for non-urgent tasks like payroll, where immediate ledger updates are not required for every single hour logged.

Key Concept

Batch Processing vs Real-time Processing in Accounting
Estimated Time:45s
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Topics

Data Processing Methods in Accounting

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