The accounting cycle I have chosen is the production cycle. The production cycle covers all related
activities which change raw materials into a finished product. This cycle generally has four main
components which are design, product timelining, manufacturing, and cost accounting feedback loop.
Each of these four areas is covered by its own department. These are generally engineering, material
management, production, and the accounting department. The need for an Accounting Information
Systems is critical for this cycle as it will help track progress and the completion of the products before
they go out to the clients or consumer. With a good system in place, it will also allow management to
be able to track when they need to purchase additional resources or be able to give a good timetable
on project completion. The influence of controls in this cycle would to be make sure materials are being
used properly which will add in the manufacturing process.
Reference:
Bragg, S. (2022, May 7). Production cycle definition. AccountingTools. Retrieved January 8, 2023, from
https://www.accountingtools.com/articles/production-
cycle#:~:text=The%20production%20cycle%20is%20comprised,a%20cost%20accounting%20feedba
ck%20loop.
