ABC Florist Revenue Cycle: Understanding the Business Process
What are the key components of ABC Florist's revenue cycle?
1. Resources: - Floral Arrangement - Bank Account
2. Events: - Customer Order - Floral Arrangement Preparation - Customer Pick-Up
3. Agents: - Customer - ABC Florist
Key Components of ABC Florist's Revenue Cycle:
ABC Florist operates a revenue cycle that involves various components to facilitate the sale of floral arrangements. These components include:
1. Resources: - Floral Arrangement: This represents the product being sold by ABC Florist. Each floral arrangement is a key resource in the revenue cycle, varying in design and price.
- Bank Account: ABC Florist maintains multiple bank accounts, but consolidates all customer receipts into its primary checking account. This helps streamline the financial management of customer payments.
The Floral Arrangement resource is essential for the business as it is the primary product offered to customers. Each floral arrangement is unique and contributes to the revenue generated by ABC Florist. By maintaining several bank accounts but depositing all customer receipts into the main checking account, the company ensures efficient tracking of financial transactions and revenue collection.
2. Events: - Customer Order: This event occurs when a customer contacts ABC Florist to place an order for a floral arrangement. It marks the beginning of the sales process and initiates the preparation of the requested arrangement.
- Floral Arrangement Preparation: This event represents the creation and assembly of the floral arrangement based on the customer's order specifications. It involves sourcing the necessary flowers and materials, arranging them aesthetically, and ensuring quality control.
- Customer Pick-Up: This event occurs when the customer visits the store to collect the completed floral arrangement. It signifies the final stage of the revenue cycle, where the customer receives and pays for the product.