Describe the key activities in the revenue, conversion, and expenditure cycles


Revenue cycle: Sales order processing involves preparation of sales orders, credit granting, shipment and billing. Cash receipts collects cash and makes bank deposits.

Conversion cycle: Production system involves planning, scheduling, and control of the manufacturing process. Cost accounting system monitors the flow of cost information related to production.

Expenditure cycle: Purchases/accounts payable involves the acquisition of physical inventory. Cash disbursements authorizes payment and disburses funds. Payroll monitors labor usage and disburses paychecks to employees.

Business

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