explain the expenditure cycle.
Expenditure cycle refers to the various stages involved in buying a particular good. It involves decision regarding purchase, ordering,receiving the order, approval of the order, storage and payment. The expenditure cycle begins at deciding to purchase a material and ends at the payment of the material deducting the payment for the unapproved material.
First looking at the expenditure cycle from personal perspective. You need to buy say a laptop. So, for this first you had an idea to make a purchase, you will look for various available options of different companies, compare features etc. , So as a first step you make a purchase decision to buy the laptop from a particular company. After that you will make a puraches order, say you have ordered online, now you will receive the delivery and check the invoice and the product details. After satisfaction and preliminary check you pay for the laptop. So, all these steps make your expenditure cycle.
In the similar way, expenditure cycle is a very common for businesses. The purchase of materials is the most frequent domain where concept of expenditure cycle works. In businesses the purchase department is involved in making purchases. In order to make purchase decision the purchasing department will compare the various suppliers/vendors, the price being offered by them and then decides to purchase from a particular supplier. After placing the order, the purchase department receives the order and check the invoices and the material so that defective or unapproved items could be returned. Then these items are stored or given to manufacturing department and finally payment is made for the approved items. Thus this constitutes an expenditure cycle for a business organisation.
Explain relationship between production, income, and expenditure in a mechanism of business cycle.
Explain the diagram (REA diagram of the Computer Warehouse’s Expenditure Cycle) by including the following: Identify relevant events Identify resources and agents Determine cardinalities of relationships Inventory Order Inventory Employee H Vendor Receive Inventory H HI Employee Cash th Disburse Cash H Vendor
Describe the weaknesses, threats, and controls of revenue cycle, payrol cycle, conversion cycle n expenditure cycle in proper detail?
Explain relationship between production, income, and expenditure in a mechanism of business cycle. What are “virtuous” and “vicious” business cycles? Discuss the current situation of Japan’s economy in terms of such business cycles, compare with the past pattern, and/or show your own projection or desirable path of Japanese economy. *This is an essay question, so please write this in detail and at length please. *I'm looking for other opinions so DO NOT answer this question if you already did.
Explain relationship between production, income, and expenditure in a mechanism of business cycle. What are “virtuous” and “vicious” business cycles? Discuss the current situation of Japan’s economy in terms of such business cycles, compare with the past pattern, and/or show your own projection or desirable path of Japanese economy. *This is an essay question, so please write this in detail and at length please. *I'm looking for other opinions so DO NOT answer this question if you already did.
Explain relationship between production, income, and expenditure in a mechanism of business cycle. What are “virtuous” and “vicious” business cycles? Discuss the current situation of Japan’s economy in terms of such business cycles, compare with the past pattern, and/or show your own projection or desirable path of Japanese economy. *This is an essay question, so please write this in detail and at length please. *I'm looking for other opinions so DO NOT answer this question if you already did.
why is it improtant that auditors familiarize themselves with the acquistion and expenditure cycle?
For the Expenditure Cycle REA diagram in Figure 2, there is just one supplier per inventory item. What are the business advantages & disadvantages of that? Special Topics in REA Modeling Calenueu nCA Diagram Supplier for Expenditure Cycle Request Inventory Red + Employee (Inventory Control) Employee (Supervisor) Order Inventory Employee (Purchasing Clerk) Inventory Supplier Warehouse Receive Employee
เล. SYSTEM DOCIENTATON--EXPENDITURE CYCLE (MANUAL PROCEDURES) The folowing describes the expenditure cycle manual procedures for a hypothetical company. The inventory control clerk examines the inventory records for items that must be replenished and prepares a two- part purchase requisition Copy 1 of the requisition is sent to the purchasing department, and Copy 2 is fied. Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference fie) and prepares a three part purchase order...
explain HRMs and payroll cycle, report systems and GL cycle, and the production cycle