Chapter 12 - The expenditure cycle: Purchasing and cash disbursements. This chapter describe the basic business activities and related data processing operations performed in the expenditure cycle; Discuss the key decisions to be made in the expenditure cycle, and identify the information needed to make those decisions; Document an understanding of the expenditure cycle activities;. | Accounting Information Systems 9th Edition Marshall B. Romney Paul John Steinbart The Expenditure Cycle: Purchasing and Cash Disbursements Chapter 12 Learning Objectives Describe the basic business activities and related data processing operations performed in the expenditure cycle. Discuss the key decisions to be made in the expenditure cycle, and identify the information needed to make those decisions. Document an understanding of the expenditure cycle activities. 12- Learning Objectives Identify major threats in the expenditure cycle, and evaluate the adequacy of various control procedures for dealing with those threats. Read and understand a data model (REA diagram) of the expenditure cycle. 12- Introduction Linda Spurgeon, Alpha Omega Electronics’ (AOE) president, asked Elizabeth Venko, the controller, to address the following issues: What must be done to ensure that AOE’s inventory records are current and accurate? What can be done to ensure timely delivery of quality | Accounting Information Systems 9th Edition Marshall B. Romney Paul John Steinbart The Expenditure Cycle: Purchasing and Cash Disbursements Chapter 12 Learning Objectives Describe the basic business activities and related data processing operations performed in the expenditure cycle. Discuss the key decisions to be made in the expenditure cycle, and identify the information needed to make those decisions. Document an understanding of the expenditure cycle activities. 12- Learning Objectives Identify major threats in the expenditure cycle, and evaluate the adequacy of various control procedures for dealing with those threats. Read and understand a data model (REA diagram) of the expenditure cycle. 12- Introduction Linda Spurgeon, Alpha Omega Electronics’ (AOE) president, asked Elizabeth Venko, the controller, to address the following issues: What must be done to ensure that AOE’s inventory records are current and accurate? What can be done to ensure timely delivery of quality components? 12- Introduction Is it possible to reduce AOE’s investment in materials inventories? What must be done to ensure that available discounts are taken? How could the information system provide better information to guide planning and production? How could IT be used to reengineer expenditure cycle activities? 12- Learning Objective 1 Describe the basic business activities and related data processing operations performed in the expenditure cycle. 12- Expenditure Cycle: Main Objective The expenditure cycle is a recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services. The primary objective of the expenditure cycle is to minimize the total cost of acquiring and maintaining inventories, supplies, and the various services necessary for the organization to function. 12- Expenditure Cycle: Key Decisions What is the optimal level of inventory and supplies to carry? Which suppliers .
