Question

Q1- Discuss the difference between batch and online processing. For the below scenarios identify which data processing method would be appropriate and why?

c. Prepare biweekly payroll checks

d. Process and order through an e-commerce website

e. Prepare a daily bank deposit

f. Preparation of customer bills by a local utility

Q2- Identify which of the following actions will update a master file and which one will be recorded in a transaction file?

a. Record daily sales

b. Record sales commissions

c. Change customer credit limit

d. Update accounts payable balance

e. Record purchases

Answer 1

Hi,

Q1- Discuss the difference between batch and online processing.

Batch and Online Processing, both are the data processing method.

Batch Processing : Data is collected and processed in groups or batches in batch processing system. This system is typically used for large amounts of data that must be processed on a routine schedule, such as pay checks or credit card transactions. Batch programs requires no user involvement and requires significantly fewer network resources than online systems.

Online Processing: An online processing system handles transactions as and when they occur and provide output directly to users. Because this system is interactive, online processing avoids delays and allows a constant dialog between the user and the system.

For the below scenarios identify which data processing method would be appropriate and why?

c. Prepare biweekly payroll checks- Batch Processing.

Reason :It is because preparation of payroll checks are routine activity and does not required one to one interaction. Also we do not require to update the data frequently. Thus data can be processed in batches at fixed intervals.

d. Process and order through an e-commerce website : Online Processing

Reason : Every customer have different requirements and instructions attached with the order, whether it is delivery instructions or product related instruction.Thus, we do not have fixed data to process and hence online processing is more appropiate.

e. Prepare a daily bank deposit: Batch Processing

Reason : It is a routine activity and can process all the transactions in groups and batches on the basis of data prepared.

f. Preparation of customer bills by a local utility : Batch Processing

Reason : It is a routine activity and can process all the transactions in groups and batches on the basis of data prepared.

Q2- Identify which of the following actions will update a master file and which one will be recorded in a transaction file?

a. Record daily sales -                                 Record in Transaction File

b. Record sales commissions - Record in Transaction File

c. Change customer credit limit- Update in Master File

d. Update accounts payable balance - Update in Master File

e. Record purchases-     Record in Transaction File

Thank You.