EFFECTS OF ACCOUNTING INFORMATION SYSTEM ON PROFITABILITY OF A COMPANY
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ABSTRACT
The study examined effects of accounting information system on profitability of manufacturing company, a case study of Cadbury Nigeria PLC.
The study employed the survey design and the purposive sampling technique to select 450 staff across management, senior and junior level. The data obtained through the administration of the questionnaires was analyzed using the Pearson correlation analysis.
The results showed that there is positive and significant relationship between Total Accounting Information System sub-variables and Profitability (r=.896; p<0.05).
The study concluded that accounting information system has a significant effect on profitability in Nigeria manufacturing companies.
Based on the findings of the study, the study recommended that; Sales Volume (SV) should be employed as an indicator by the management of every manufacturing company, to ensure that boost of sales is guaranteed; Accounting department should be the one in charge of all financial and assets aspect, which should be headed by a qualified accountant; Expenses should only be made when necessary and should be minimize so profits can be maximize in manufacturing companies; Standard accounting infomation system should be formulated and maintained.
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