Impact of the computerization of the accounting information system of an organization on decision making: case study national insurance corporation Kampala Uganda
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Date
2010-07
Authors
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Publisher
Kampala International University.College of Economics and Management
Abstract
The theme under consideration of the impact of the computerization of the accounting
information system on decision-making focuses on how computerization of the accounting
information system affects decision-making.
Questions were raised as to why the information system is actually computerized and costs and
benefits involved, and how these create an impact on decision-making. Such questions were
important in analyzing the cost effectiveness of the process of computerizing and the benefits of
doing so. Then how it has affected the decision-making process.
The questions were answered by looking at the background of the study, which explains the
importance of information and especially the accounting information. Then it goes on to uncover
the relation of the accounting information to decision-making and how decision-making is
affected by computerization. With this background, a problem is stated and objectives of the
study are developed. Then the significance of the study is revealed. In the literature review,
various authors are cited whose views on the topic are compared. This helped to place the topic
into a position of relevance for study.
A methodology was developed to guide in the collection of information for the purpose of
proving the study problem. This methodology helped set the different methods of data collection
used in the evidencing of the study. An area of study was set in National Insurance Corporation,
which is a listed institution. There were selected participants from within for different
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departments intended to develop a diversified view. The materials used for study included
questionnaires, interviews and observations and secondary data. The procedures taken were an
introduction to the organization, explanations were made, introduction to the respondents and
distribution and collection of questionnaires, as well s time for interviews. Some problems were
encountered in the event of collecting the data.
The findings were that the computerization of the accounting information system had an impact
on decision-making in terms of improved speed, accuracy and efficiency in the quality of work. It
has reduced vices like fraud and the tasks of employees have been eased. However, it is a very
costly process initially. Though such costs are recouped in the bank charges.
In conclusion, the impact is seen to be relative. The costly nature of the process is worthwhile
since the benefits outweigh the costs. It cannot be ignored that computerization has an impact on
decision-making. But in its relative state, it does not wholly affect decision-making. It is
necessary to computerize, for better decision-making.
Description
Research dissertation submitted in partial fulfillment of the requirements for the award of the degree of bachelor of Business Administration of Kampala International University Faculty of Business and Management
Keywords
Computerization, Accounting, Information system, Organization