Question

How is the acquisition/payment process related to the conversion process?

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Answer 1

The interaction between the different processes is easily explained as: Financing process makes the cash available which is paid out in the acquisition/payment course in exchange for goods and services. More or less goods and services which are made accessible by the acquisition/payment procedure are sold in the sales/collection process while as others get used in the conversion process. The number of units accommodated for preferred changes in inventory balances are anticipated to be sold in the sales/collection process which in turn concludes the number of units that a business should strategize to produce in the conversion process.