Exam 12: Database Structure of Accounting Systems

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Data redundancy means storage of the same data in several different files. This condition causes a lack of data quality, data inconsistency, and inefficient use of resources. Lack of data quality results when the same data are stored in more than one location and a change to the data is not made in all locations. Data inconsistency results when, for example, data stored in more than one location is stored in different formats. A social security number could be stored in one file with a nine-digit numeric format but with a packed decimal format in another file. Inefficient use of resources results because secondary storage is wasted by storing the same data in multiple locations. Also, it is costly to input the same data in storage more than one time.