Categorize each of the following activities into the expenditure, conversion or revenue cycles and identify the applicable subsystem.
a. Preparing the weekly payroll for manufacturing personnel.b. Releasing raw materials for use in the manufacturing cycle.c. Recording the receipt of payment for goods sold.d. Recording the order placed by a customer.e. Ordering raw materials.f. Determining the amount of raw materials to order.
What will be an ideal response?
a. Expenditure cycle-payroll subsystem.
b. Conversion cycle-production system subsystem.
c. Revenue cycle-cash receipts subsystem.
d. Revenue cycle-sales order processing subsystem.
e. Expenditure cycle-purchases subsystem.
f. Conversion cycle-production subsystem.
PTS: 1
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