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Chapter 15 Relationship Between Accounting and Other Business Functions

Accounting coordinates with other business functions like purchasing, production, marketing, and service provision. Purchasing coordinates on credit terms, prices, payments, data capture, inventory, and budgeting with accounting. Production coordinates on cost measurement, allocation, budgeting, cost versus quality, and inventory. Marketing coordinates on budgeting, advertising, pricing, and market share. Service provision considers intangibility, inseparability, perishability, and variability, and accounting coordinates on charge out rates, estimating costs, and problems measuring benefits.

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611 views7 pages

Chapter 15 Relationship Between Accounting and Other Business Functions

Accounting coordinates with other business functions like purchasing, production, marketing, and service provision. Purchasing coordinates on credit terms, prices, payments, data capture, inventory, and budgeting with accounting. Production coordinates on cost measurement, allocation, budgeting, cost versus quality, and inventory. Marketing coordinates on budgeting, advertising, pricing, and market share. Service provision considers intangibility, inseparability, perishability, and variability, and accounting coordinates on charge out rates, estimating costs, and problems measuring benefits.

Uploaded by

key67782
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 15

The relationship between accounting and


other business function
Purchasing <procurement>
• Its about co ordination between purchasing
department and accounts department. how
they interact with each other in different
levels and procedure
Purchasing department coordinates as
follows
• Establishing credit terms
• prices
• payment
• Data capture
• Inventory
• budgeting
Production
• Cost measurement allocation
• Budgeting
• Cost vs quality
• Inventory
Marketing
• Budgeting
• Advertising
• Pricing
• Market share
Service provision
• The nature of service are as follows
– Intangibility
– Inseparability
– Perishability
– variability
The relationship between service provision
and accounting
• Charge out rates
• Estimating costs
• Problems measuring benefits

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