Question

With the increase in technology, new inventory methods have evolved. How do these new inventory systems correlate with the advancement of accounting information systems?

Answer 1

in Recent decades technology has taken a great lap. which affects each and every sector along with accounts and management accounting. which improves the accounting and record keeping much easier as compared to traditional recordkeeping and accounting. nowadays we can track each and every movement of raw material to finished goods in real time. hence management has a more clear picture of the cost of production, raw material, wastage, transportation, direct and indirect expenses. which helps management to get a better picture of cost per unit along with bid price for the specific quotation. which ultimately helps to get the bigger market coverage, easy availability of raw material, time-saving in ordering which reduces opportunity lost. one of the newly evolved inventory systems is the perpetual inventory system which ensures that the balance sheet and income statements are correct all the time.