Accounts 12 (1) · Section 15

Applications of Computers in Accounting III AIS and Manufacturing Information System Similarly, business process in the production department may involve the following activities : • preparation of plans and schedules • issue of material requisition forms and job cards • issue of inventory • issue of orders for procurement of raw materials • handling of vendors invoices • payments to vendors The accounting sub-system transaction cycle would therefore include the processing of purchase orders, advance to suppliers/vendors, inventory status updation, account payable, etc. All of this information has to share with the other MIS in the organisation. Hence, the computerised accounting system as a sub component of the accounting information system transforms the financial data into meaningful information and communicates the information to the decision-makers. The report demanded may be routine or specific ones. Key Terms Introduced in the Chapter • Operating system • Management information system • Analysts • Transactions processing system • Utility programme • Accounting information system • Data • Data interface • Application software • Report Summary with Reference to Learning Objectives Meaning of a Computer : Computer is an electronic device capable of performing variety of operations as desired by a set of instructions. Elements of a Computer System : • Hardware • Software • People • Procedure • Data • Connectivity Capabilities of a Computer : • Speed • Accuracy • Reliability • Versatility • Storage © NCERT not to be republished