Examining software and hardware - Essay Example

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If we look at the accounting system, one of the important parts of accounting system is that they produce information in the specific cycle and hence the firms are required to prepare a report that reflects the financial situation of the company…
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Examining software and hardware
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If we look at the accounting system, one of the important parts of accounting system is that they produce information in the specific cycle and hence the firms are required to prepare a report that reflects the financial situation of the company As far as inventory cycle is concerned, it requires the information that is associated with the inventory value, quantity ant timing. The information related with the quantity in hand, quantity on order, quantity on receiving department along with location and time is needed to be shared between other accounting cycles (Deshmukh, 2006).Some of the selected cost accounts and general ledger account are also need to be updated and shared between other accounting cycles. Information elated with inventory valuation using moving average price or standard cost can share for financial reporting purposes. Inventories can be divided into two parts standard inventory and special inventory. The inventory in standard category is an inventory that is ready to use, reserved for special uses and the inventories that are undergoing quality control. So all the information related with the standard inventory system must be shared between inventory cycle and financial reporting. The special category includes inventory that has been valued and has been owned and managed under different criteria like consignment inventory, inventory embarked for subcontractors and packaging materials that has to be returned by the customers after receipt of orders in these conditions special inventory cycle information becomes important for the payroll cycle. Read More
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