Operations_&_Accounting

Operations & Accounting Interfaces of Operations Management in Accounting Abstract The interfaces of operations management in accounting are many. Operations management supplies the accounting profession with the tools it needs to track relevant information, evaluate an organization’s processes, and lower costs. Inventory is a major concern for the accounting profession. Many different ways of managing inventory exist, but not all apply to the same companies. This paper examines the various ways the operations management field interrelates with the accounting field. Some of the areas discussed are inventory management, costs and costing models, just-in-time systems, material requirements planning, and total quality management. These areas are described and then related to the accounting function of business. Keywords: Accounting/operations, Inventory control, Just-in-time/kanban, Material requirements planning, Quality 1. Introduction Accounting and operations management are two fields that go hand-in-hand. Accounting is generally thought of as tracking the performance of an organization, paying bills, and collecting money (Heizer and Render, 2001, p. 10). However, accounting is increasingly becoming more crucial to the decisions of management. Accountants are no longer just number crunchers; they are active in every facet of costs, just-in-time, management, inventory, accounting, production, order, quality, purchasing, total, quantity, operations, demand, company, model, time, system, planning, manufacturing, 2000, suppliers, supplier, carrying, material, cost, concept, 2001, requirements, process, key, product, ordering, must, lead, discount