Final answer:
The activities listed relate to different business cycles: 1) Expenditure cycle (Preparing payroll, Ordering raw materials, Determining raw materials to order), 2) Conversion cycle (Releasing raw materials for manufacturing), and 3) Revenue cycle (Recording payment for goods, Recording customer orders).
Step-by-step explanation:
Activities within a business can typically be categorized into three cycles: the expenditure cycle, the conversion cycle, and the revenue cycle. Each cycle is associated with different business processes and can also be linked to respective subdivisions or subsystems within an organization.
- Preparing the weekly payroll for manufacturing personnel falls under the expenditure cycle, specifically the payroll subsystem. This involves compiling employee hours, calculating wages, and disbursing payment for labor.
- Releasing raw materials for use in the manufacturing cycle is part of the conversion cycle, as it relates to the inventory control subsystem. This is the process of utilizing inventory for production.
- Recording the receipt of payment for goods sold is a part of the revenue cycle, which comes under the cash receipts subsystem. It involves the recognition and recording of the income received from sales.
- Recording the order placed by a customer is also within the revenue cycle, specifically the sales order processing subsystem, which manages customer orders before delivery.
- Ordering raw materials comes under the expenditure cycle and relates to the purchase order processing subsystem. This involves selecting suppliers and managing purchase orders for raw materials.
- Determining the amount of raw materials to order falls within the expenditure cycle and relates to the inventory control subsystem. This activity involves inventory management and is crucial to ensuring material availability for production without excessive inventory holding costs.