Question

Explain the following sub-systems of Accounting Information System: Purchase and Accounts payable sub-system Costing sub-system.

Accepted Answer

(a) Purchase and Accounts payable Sub-system: It deals with the purchase and payments to the creditors. It provides for ordering of goods, sorting of purchase expenses and payment to the creditors. It also generates periodic reports about the performance of suppliers, payment schedule and position of the creditors. (b) Costing Sub-System It deals with the ascertainment of cost of goods produced. It has linkages with other accounting sub-systems for obtaining the necessary information about cost of material, labour and other expenses. this system generates information about changes in the cost that takes place during the period under review.

Explain the following sub-systems of Accounting Information System : (a) Purchase and Accounts payable sub-system (b) Costing sub-system.

Marking-scheme solution

More from Overview of Computerised Accounting System