Efficiency and Effectiveness of an Accounting System

CHAPTER 1 THE PROBLEM AND ITS SETTINGS Introduction Most of the world’s work is done through organization – groups of people who work together to accomplish one or more objectives. In doing its work, an organization uses resources – labor, materials, various services, building and equipment. These resources need to be financed, or paid for to work effectively, the people in organization need information about the amounts to these resources, the means of financing them, and the results achieved through using them. Parties outside the organization need similar information to make judgments about the organization. Human beings have limitations. Everyday transactions cannot be retained in the human brain for quite a period of time†¦show more content†¦Within the chart of accounts, the accounts are numbered for use as references. A flexible numbering system is normally used, so that new accounts can be added without affecting other account numbers. Theoretical Framework of the Study People are most important resource that an organization utilizes. The use of a new machine does not take into account the attitudes and expectations of employees that can reduce productivity and give rise to serious human problems like any other employees in organization that have their individual values, attitudes perceptions and life styles. When they are unsettled about any of these factors, efficiency on the job will be impeded and cooperation very difficult to obtain. The theory of operations management views all activities necessary to purchase and deliver a product or service desired by customers using a system approach represented by the input-process-output method. The input-process-output sequence in operations management is a useful way to conceptualize productive systems or means by which resource inputs are transformed to create useful goods and services outputs. The same theory further claims that the effectiveness of the operations fu nctions and the subsequent steps of systems improvement hinges on a careful analysis of inputs, transformation process and outputs of production as well as external environment. Inputs include needs of customers, labor and management information technology, fixed assets that areShow MoreRelatedFeature of Mis1573 Words   |  7 PagesFeatures of MIS Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: 1. Accounting management information systems: All accounting reports are shared by all levels of accounting managers. 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