TAILIEUCHUNG - Lecture Accounting information and reporting systems: Chapter 15 - A. Aseervatham, D. Ariandarajah

Chapter 15: The conversion cycle. After studying this chapter you will be able to: To learn what the conversion cycle business activities are, to learn how to flow chart the conversion cycle business activities, to understand the processing of conversion cycle transactions using a computer, to know the control practices and procedures required in the conversion cycle. | The conversion cycle Learning objectives To learn what the conversion cycle business activities are. To learn how to flow chart the conversion cycle business activities. To understand the processing of conversion cycle transactions using a computer. To know the control practices and procedures required in the conversion cycle. key terms direct labour cost direct material cost job order costing just-in-time inventory system material requirements planning overhead cost process costing work in process Conversion cycle business activities Transactions in the conversion process: acquisition of materials acquisition of labour transfer of materials, labour and overheads into production transfer of finished goods to inventory sale of inventory Major groups in the conversion cycle Inventory Payroll Cost accounting Inventory Main activity is to keep records of inventory levels: raw materials finished goods Valuation methods used: periodic inventory method perpetual inventory method Inventory processing Payroll system Records labour transactions Payroll system interfaces with conversion cycle providing information on labour transactions Cost accounting Records transactions of conversion cycle classifying three major elements: Direct material costs Direct labour costs Overhead costs These are recorded in a ‘Work in process account’ Non-accounting systems Systems necessary to the conversion cycle: Product design Production planning and scheduling systems Material requirements planning Just-in-time systems Computer-aided manufacturing Internal control procedures for the conversion cycle Material requisitions properly authorised Approved production schedules Finished goods transferred to storeperson’s care Inventory records checked for accuracy Physically verify stocks to check for losses and accuracy of records Investigate differences in physical and accounting records and take appropriate action Monitor defective production Investigate customer .

• Kế toán - Kiểm toán
• Accounting Information
• Reporting Systems
• Accounting information system
• AIS super system
• Conversion cycle
• Inventory processing
• Accounting information systems
• Lecture Accounting information systems
• Hệ thống thông tin kế toán
• Control information
• Information systems controls
• Financial Accounting
• Principles of financial accounting
• Accounting information systems
• Fundamental system principles
• Accounting systems
• Lecture Accounting information systems
• Production cycle
• Accounting system
• Human resources management
• General ledger
• Systems development life cycle
• AIS development strategies
• Systems design
• Using financial accounting information
• The annual report
• Processing accounting information
• Internal control
• Computer accounting
• System security
• Value of information
• Business process
• Business process cycles
• The accountant
• Information technology
• Documenting accounting information systems
• Data modeling
• Controls for information security
• Information security
• Trust services framework
• System reliability
• Report Accounting information system
• E Commerce business
• E commerce enterprise
• Risks in payment
• Security of customer information
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Technology based accounting systems
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Accounting terminology
• Accounting cycle
• Cash collections
• Revenue cycle
• Expenditure cycle
• Cash disbursements
• Value chain
• Supply chain
• Decision structure
• Control frameworks
• Internal controls
• COBIT framework
• Information systems
• Transaction processing