ABSTRACT
This research project investigated the effect of Computerized Accounting System on the Performance of Manufacturing Firms in Nigeria. In order to achieve it objectives, the research proposed two hypotheses and data collected through the issue of fifty (50) structured questionnaires to manufacturing companies quoted on the Nigeria Stock Exchange (NSE). Data collected from the study sample was analysed using Pearson Correlation method. Our findings shows that there is a positive and significant relationship between the implementation of computerized accounting system and the effectiveness of manufacturing companies in Nigeria. The findings also show that there is positive and significant relationship between the implementation of computer based accounting system and the efficiency of manufacturing companied in Nigeria. Given the findings as summarized above, this study concludes that the implementation of computerized accounting systems in manufacturing operations has led to increased effectiveness in delivering on services. It has ensured that firms in the sector can zero in on the most important and relevant issues and making sure that such issues are taken care of effectively. We also conclude that the implementation of computerized accounting systems has greatly improved the efficiency of manufacturing companies by identifying wasteful activities which are subsequently eliminated and thus leading to saving on costs. Given the findings and conclusions, we recommend that manufacturing companies should continue to increase the computerization of their accounting and indeed manufacturing processes. The research further recommended that manufacturing companies provide adequate training and re-training for the staff that are expected to work with the computerized systems. Finally, we recommend that regulators and policy makers in the sector make policies that will encourage manufacturing companies to implement computer based accounting systems in order to comply with international best practices.
There are two main types of accounting system; the manual and computerized/automated accounting system. The choice of an accounting system depends on the size of the organization, the nature of the processes, the extent of computerization, the philosophy of management and other factors. Certainly, most large and medium size organization use computerised accounting system (CAS) also called Electronic data processing or EDP system.
Companies and individuals hire accountants in order to help them carry out accounting function. Before information is being introduced to accounting, accounting function was performed manually. According to Rose N.N, Bichanga W.O, Andrew N. (2015), with the introduction of computers in business, the manual method of financial accounting and management is being gradually replaced with computerised ones. Technology has created significant advances in the area of financial management and accounting software. Information technology and systems have tremendous impact on the productivity and performance of manufacturing firms (Siamek, N.S. 2013).
Many organisation greatly rely on computers and accounting software to provide accurate information to effectively manage their businesses. Computerisation of accounting system has contributed immensely to the accounting department; it has shortened the lead time needed by accountants to prepare and present financial information to management and stakeholders. (Briggs, D. and Bamson T.J. 2013).
Computerised accounting system characteristics refers to those technical aspect of the system in terms of meeting the user requirements (system quality) and the quality of the output produced by the system (information quality). Some commonly measures of system quality are reliability, flexibility, response time and maintainability. For information quality measures include completeness, timeliness, accuracy and relevance.
There has been a record of increase in business performance over the years in the world, and this performance is mainly measured in terms of profitability. The term profitability is referred to as the ability to make profits steadily over a long period of time. Profitability can be assessed through the use profitability ratios such as net profit margin, return on assets (ROA), earning per share (EPS) and other accounting ratios.
The use of computerized accounting in the manufacturing industry is relevant and beneficial considering the significant role of manufacturing firms in the economy. This paper examines the relationship that exists between computerized accounting system characteristics and the profitability of quoted manufacturing firms in Nigeria. ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
INTRODUCTION
.............. Accounting information is necessary in order to evaluate a company’s past performance, present condition and future prospects. In order to achieve this accounting system must be designed. An accounting system is a collection of processes, procedures and controls designed to collect, record, classify and summarize financial data for interpretation and management decision making. There are two main types of accounting system; the manual and computerized/automated accounting system. The choice of an accounting system depends on the size of the organization, the nature of the processes, the extent of computerization, the philosophy of management and other factors. Certainly, most large and medium size organization use computerised accounting system (CAS) also called Electronic data processing or EDP system.
Companies and individuals hire accountants in order to help them carry out accounting function. Before information is being introduced to accounting, accounting function was performed manually. According to Rose N.N, Bichanga W.O, Andrew N. (2015), with the introduction of computers in business, the manual method of financial accounting and management is being gradually replaced with computerised ones. Technology has created significant advances in the area of financial management and accounting software. Information technology and systems have tremendous impact on the productivity and performance of manufacturing firms (Siamek, N.S. 2013).
Many organisation greatly rely on computers and accounting software to provide accurate information to effectively manage their businesses. Computerisation of accounting system has contributed immensely to the accounting department; it has shortened the lead time needed by accountants to prepare and present financial information to management and stakeholders. (Briggs, D. and Bamson T.J. 2013).
Computerised accounting system characteristics refers to those technical aspect of the system in terms of meeting the user requirements (system quality) and the quality of the output produced by the system (information quality). Some commonly measures of system quality are reliability, flexibility, response time and maintainability. For information quality measures include completeness, timeliness, accuracy and relevance.
There has been a record of increase in business performance over the years in the world, and this performance is mainly measured in terms of profitability. The term profitability is referred to as the ability to make profits steadily over a long period of time. Profitability can be assessed through the use profitability ratios such as net profit margin, return on assets (ROA), earning per share (EPS) and other accounting ratios.
The use of computerized accounting in the manufacturing industry is relevant and beneficial considering the significant role of manufacturing firms in the economy. This paper examines the relationship that exists between computerized accounting system characteristics and the profitability of quoted manufacturing firms in Nigeria. ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study 1
1.2 Problem Statement 4
1.3 Objective of the Study 5
1.4 Research Questions 5
1.5 Research Hypothesis 6
1.6 Significance of the Study 6
1.7 Scope of the study 7
1.7.1 Geographical Scope: 7
1.7.2 Content / variable Scope 8
1.8 Limitation of the Study 8
1.9 Definition of Terms 8
1.10 Organization of the study 10
REFERENCE 11
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 THEORETICAL FRAMEWORK 12
2.1.1 The System Theory 12
2.1.2 The Information Systems Model 13
2.2 CONCEPTUAL FRAMEWORK 14
2.2.1 The Concept of Accounting Information System 14
2.2.2 Computerized Accounting System 16
2.3 COMPUTERIZED ACCOUNTING SYSTEM CHARACTERISTICS 30
2.3.1 SYSTEM QUALITY 31
2.3.1.1 Reliability 32
2.3.1.2 Flexibility 33
2.3.1.3 Accessibility 33
2.3.2 INFORMATION QUALITY 33
2.3.2.1 Relevance 34
2.3.2.2 Timeliness 34
2.3.2.3 Accuracy 35
2.3.2.4 Completeness 35
2.4 PROFITABILITY 37
2.4.1 Net profit margin 38
2.4.2 Return on assets (ROA) 38
2.4.3 Earnings per share (EPS) 38
2.4 EMPIRICAL ANALYSIS 40
2.4.1 Local (Nigeria) Evidence 40
2.4.1 International Evidence 43
2.7 The Manufacturing Sector in Nigeria 49
2.8 Summary of Literature Review 48
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 50
3.2 Population of the study 50
3.3 Sample and Sampling Technique 50
3.3.1 Sample size and selection method 51
3.4 Data Collection and Questionnaire Design 51
3.5 Data Analysis Technique 52
3.6 Validity of the Instrument 52
REFERENCE 54
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND DISCUSSION
4.0 INTRODUCTION 58
4.1 DATA PRESENTATION 58
4.2 DATA ANALYSES AND INTERPRETATION 62
4.3 HYPOTHESES TESTING AND INTERPRETATION 67
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS 71
5.2 CONCLUSIONS 72
5.3 RECOMMENDATIONS 72
APPENDIX 74
Reference Code: C059
Reference Code: C059
_________________________________
_________________________________
Click the Order Now Button Below to Have it Sent Directly to You Now!
No comments:
Post a Comment