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Accounting Information Technology Assignment Question
Make up a process of selecting an Accounting Information System to make informed decision for an investment in an accounting software.
Information Technology Assignment Solution on Accounting Information System
The business processes at ABC includes all the processes starting from receiving of orders to shipment of finished clothes. The entire business process for ABC, can be divided into three stages (Safiqul, 2011).
- Pre-production stage
- this stage, several activities take place, like, checking for quality, folding, packaging, and shipping, etc. After this stage is complete, and the shipments are done to individual stores, several kinds of data handling is done, in relation to sales orders handling, individual billing information, sales data for the stores, etc.(M. Bevilacqua, 2013).
The entire process flow for ABC Company illustrates the various processes which are indispensable for their business. The individual processes and their indispensable nature are explained below.
- Planning and Sampling: Planning forms a crucial process for the company. The amount of manpower, material and machinery requirements which would be needed for fulfilling the demand, should be known well in advance. There could be several implications of an un-planned project, for example: Shortage of required manpower, under production leading to sales loss, over production leading to increased inventory handling and obsolescence cost, etc.
- Procurement and Inspection: It is important to procure the right quantity of materials from the supplier and to have an inbuilt process to inspect the material to verify whether it qualifies for entering the production process. Under-quality material might need to be shipped back, while good quality moves ahead into production.
- Production: This is the most crucial stage in the business, when the finished goods are prepared from the raw materials. At any stage in this process, three kinds of materials are handled, namely, raw-material, ‘work-in-progress’ goods, and finally the finished goods.
- Lot sizing and Quality inspection: After the finished goods are ready, they need to be arranged in lots for shipping to the individual demand points (stores). This process also involves a quality inspection stage, where it is important to ensure that nay product with a manufacturing defect or error, is sent for repair and alteration, and only the suitable products are shipped to the stores.
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