The production cycle is a recurring set of business activities with
correlating information processing operations associated with the
manufacture of products. The four basic activities in the production
cycle are product design, planning and scheduling, production
operations, and cost accounting (Romney, 2020). A managerial
accountant can look at the production cycle to evaluate how the
production processes can improve.
Costs of materials, overhead, and labor are some of the components
involved in the production cycle. The results of Calculations and
analyses involving these costs and inputted into accounting
information systems such as the general ledger. An extremely useful
report that could be generated using this info is a detailed cost-
benefit report (Universal Class, 2022). This enables managers to make
decisions involving profitability and efficiency. Effective controls
within the production cycle may also contribute to decision making
such that they can contribute to reliable and accurate information
and/or data. Strong controls within the accounting cycles are
instrumental to all three working together usefully.
References
Romney, M. B., Steinbart, P. J., Summers, S. L., & Wood, D. A. (2020).
Accounting Information Systems (15th ed.). Pearson Education (US).
https://mbsdirect.vitalsource.com/books/9780135573082
Universal Class. (2022). A Manager’s Overview of a Company’s
Accounting Processes. Retrieved January 5, 2023, from
https://www.universalclass.com/articles/business/policies-and-
company-components-in-managerial-accounting.htm
