Final answer:
The conversion cycle is made up of the Production and Human Resources subsystems, which are responsible for transforming inputs into finished goods and managing the workforce involved in production respectively.
Step-by-step explanation:
The two subsystems that make up the conversion cycle are Production and Human Resources. This cycle is crucial within business operations because it encapsulates all the processes involved in transforming inputs into finished goods or services. The Production subsystem is focused on the actual creation of products or services, including all the tasks related to planning, scheduling, and controlling the production process. On the other hand, the Human Resources subsystem plays a vital role in managing the workforce that carries out production tasks, including hiring, training, and ensuring that there are enough staff members to meet production requirements.