- 10 Marks
Question
The management of Marine Services Ltd intends to convert the existing manual accounting systems to an accounting information system to achieve its operational efficiency.
Required:
Explain FIVE (5) accounting information systems that could be used to enhance the operational efficiency of Marine Services Ltd.
Answer
Accounting Information Systems for Operational Efficiency:
- Order Processing System:
This application records and processes customer orders and produces data for inventory control and accounts receivables. It helps in streamlining the order fulfillment process, ensuring accuracy and efficiency. - Inventory Control System:
This system processes data reflecting changes in inventory as well as shipping and re-order information. It helps in maintaining optimal inventory levels, reducing waste, and ensuring timely replenishment. - Accounts Receivable System:
This application records the amounts owed by customers and produces invoices and monthly information for them. It also provides monthly accounting transactions for customers, ensuring timely collection of receivables and improving cash flow management. - Accounts Payable System:
This system captures all purchases made by a company and tracks amounts owed to suppliers. It provides periodic statements to appropriate users, helping in managing payables and maintaining good supplier relationships. - Payroll Administration System:
This application facilitates the recording of employees’ outputs and other financial benefits, and provides periodic pay slips to them. It also generates periodic reports for management, ensuring accurate and timely payment of salaries and benefits to employees.
- Uploader: Kwame Aikins