1 The revenue cycle's primary objective is to provide the right product in the right

. place at the right time for the right price. To accomplish that objective,
management must make what key decisions?

The primary aim of the revenue cycle is to provide the appropriate product at the right
time and place, at the right price. In order to accomplish this goal, management needs to
make many significant decisions including understanding how far the product can and
must be customized to the needs and preferences of each customer, review a lot of
inventory that must be owned and the setting for the inventory, using the best way to
distribute merchandise to the clients, determine the level of credit to be offered each
customer, determine the terms of credit that should be granted to clients, and determine
how consumers pay so they can be processed to optimize cash flow.

2 How can the risk of the theft of cash and customer checks be stolen be minimized?
.

There are following segregation of duties should be used to reduce the risk including
handling cash or checks and posting remittances to customer accounts, handling cash or
checks and authorizing credit memos, and issuing credit memos, maintaining customer
accounts, and deposit all cash receipts daily. The uses of lock box can also reduce theft
for the reason that it is a bank-operated mailing address to which a company directs its
customers to send their payments.

3 Identify the four basic activities in the revenue cycle and their sub processes.
.
A recurring set of business activities and related information processing operations
associated with providing goods and services to customers and collecting cash in
payment for those sales. These are the four fundamental revenue cycle that all
accountants should know something about. First, sales order it begins with the receipts of
order from customers. The sub-process of sales order contains taking the customer’s
order, checking and approving customer credit, checking inventory availability, and
responding to customer inquiries. Second, shipping process which is filling customer
orders and shipping the desired merchandise. The sub-process of shipping process
involves picking and packing orders, and shipping the orders. Third, billing process
involves billing customer. The sub-process of billing process includes send out invoices to
customer, and maintaining customer accounts. Lastly, cash collections are collecting and
processing payments from customers. The sub-process of cash collections contains of
taking remittances from customers and deposit them in the bank, and credit the
customer’s accounts when the payment is received.