Orazimife 1-5 Full Project

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ACCOUNTING INFORMATION SYSTEM (AIS) AS A PLANNING AND

DECISION-MAKING TOOL: A STUDY OF INDUSTRIAL METALLIZING &
PACKAGING COMPANY (IMPCO) IN NIGERIA 2023
BY
ORAZIMIFE PRECIOUS CHINELO
MATRIC NO: 19/5892
A PROJECT PRESENTED TO THE DEPARTMENT OF ACCOUNTING AND

FINANCE, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF BACHELOR DEGREE (B.Sc.) IN ACCOUNTING COLLEGE OF
ARTS, SOCIAL AND MANAGEMENT SCIENCES, CALEB UNIVERSITY, LAGOS
JULY, 2023
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DECLARATION
I, ORAZIMIFE PRECIOUS CHINELO, do hereby declare that this project is entirely my
work and composition. The work embodied in this project has not been submitted in a
candidature for any degree and is not concurrently submitted for any degree. All references
made to works of other persons have been duly acknowledged.
Signature_________________ Date________________
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CERTIFICATION
This is to certify that this research project was carried out by PRECIOUS in the Department
of Accounting and Finance, College of Arts, Social and Management Sciences, Caleb
University, Imota, Lagos. The research work is considered adequate in partial fulfilment of
the requirements award of B.Sc. in Accounting.
_____________________________ _________________
Dr. Olalekan Oladipo Akinrinola Date and Signature
(Project supervisor)
____________________________ __________________
Dr. Olalekan Oladipo Akinrinola Date and Signature
(Head of Department)
_____________________________ __________________
PROF. Barine Michael Nwidobie Date and Signature
(College Dean)
_____________________ ___________________
External Examiner Date and Signature
DEDICATION
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This work is dedicated to GOD Almighty, the creator of heaven and earth, the one who
knows the end from the beginning, my source of inspiration, wisdom, knowledge and
understanding, for providing me with the strength and unmerited favour, for granting me all
the help I needed to carry out this research work. I also dedicate this project to my parents
and siblings; who has encouraged me all the way from start to end. GOD bless you.
ACKNOWLEDGEMENT
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I am eternally grateful to GOD almighty for life, mercy, knowledge, and strength he endowed
me with all the way through my four years journey in Caleb University and my research
work.
I remain indebted to my parents Mr. Orazimife Elias and Mrs. Orazimife Oluchi who
supported me throughout the programs and my siblings, Orazimife Stephen Chidi,
Orazimife Emmanuel Chigozie and Anidiobi Cynthia Chinenye, for their love, support,
and encouragement.
I would like to express my sincere gratitude to several individuals for supporting me through
this research work. First and foremost, my project supervisor Dr. Olalekan Oladipo
Akinrinola, for his words of encouragement, patience, suggestions, helpful information,
practical advice and patience, which have helped me tremendously at all times in my
research. His immense knowledge, profound experience and professional expertise have
enabled me to complete this research successfully. Hence, I say thank you. Also, a special
thanks to Dr. Solomon Audu, Mr. Adedinran, Mrs. Omojola Oreoluwa, and PROF.
Barine Michael Nwidobie for your time in guiding me and answering my queries you all
made it possible for me to have completed the work.
To my amazing friend, OBI MELISSA AMARACHI thank you so much, GOD bless you.
TABLE OF CONTENT
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TITLE PAGE 1
DECLARATION 2
CERTIFICATION 3
DEDICATION 4
ACKNOWLEDGEMENT 5
TABLE OF CONTENTS 6
ABSTRACT 9
CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY 10
1.2 STATEMENT OF THE PROBLEM 12
1.3 OBJECTIVES OF THE STUDY 13
1.4 RESEARCH QUESTIONS 13
1.5 RESEARCH HYPOTHESES 14
1.6 SCOPE OF THE STUDY 14
1.7 SIGNIFICANCE OF THE STUDY 15
1.8 DEFINITION OF TERMS 16
REFERENCE 17
CHAPTER TWO: LITERATURE REVIEW

2.1 INTRODUCTION 20
2.2 CONCEPTUAL CLARIFICATIONS 20
2.2.1 CONCEPT OF INFORMATION 20
2.2.2 CONCEPT OF ACCOUNTING INFORMATION 20
2.2.3 CONCEPT OF ACCOUNTING INFORMATION SYSTEMS (AIS) 21
2.2.4 PLANNING AS A CONCEPT 22
2.2.5 ACCOUNTING INFORMATION DECISION-MAKING 23
2.3 RELEVANCE OF THE STUDY 24
2.3.1 ACCOUNTING INFORMATION SYSTEMS AS A PLANNING TOOL 25
2.3.2 SUBSYSTEMS OF ACCOUNTING INFORMATION SYSTEM 25
2.4 THEORETICAL REVIEW 27
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2.4.1 CONTINGENCY THEORY 27

2.4.2 RESOURCE-BASED VIEW THEORY 27
2.4.3 AGENCY THEORY 28
2.5 THEORETICAL FRAMEWORK 29
2.5.1 RELEVANCE OF THE THEORY 29
2.6 EMPIRICAL REVIEW 30
2.6.1 PREVIOUS STUDIES FROM OTHER COUNTRIES 30
2.6.2 PREVIOUS STUDIES FROM NIGERIA 32
REFERENCES 35
CHAPTER THREE: METHODOLOGY

3.1 INTRODUCTION 41
3.2 RESTATEMENT OF RESEARCH QUESTIONS 41
3.3 RESTATEMENT OF RESEARCH HYPOTHESIS 41
3.4 RESEARCH DESIGN 42
3.5 POPULATION OF THE STUDY 42
3.6 SAMPLE SIZE AND SAMPLE TECHNIQUE 43
3.7 METHOD OF DATA COLLECTION 43
3.8 RESEARCH INSTRUMENT 43
3.9 INSTRUMENT VALIDATION AND RELIABILITY 44
3.10 METHOD OF DATA ANALYSIS 44
3.11 MODEL DESCRIPTION AND JUSTIFICATION 45
3.12 LIMITATIONS OF THE METHODOLOGY 45
3.13 ETHICAL CONSIDERATIONS 46
REFERENCE 47
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION 48
4.2 PRESENTATION OF DATA 48
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4.3 ANALYSIS ACCORDING TO THE RESEARCH OBJECTIVES 50

4.4 ANALYSIS OF RESEARCH HYPOTHESES 54
4.5 DISCUSSION OF FINDINGS 60
REFERENCE 61
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 INTRODUCTION 62
5.2 SUMMARY OF THE STUDY 62
5.3 CONCLUSION 62
5.4 RECOMMENDATIONS 63
5.5 AREA OF FURTHER RESEARCH 64
5.6 BIBLIOGRAPHY 65 - 70
APPENDICES 71 - 82
ABSTRACT
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Accounting information is a system responsible for the provision of past and future
information that relates to budgeting for resources and activities, accounting for cost, assets
and liabilities, capital and operating expenses, and different income streams of the
organization. The current study assessed the use of accounting information system as a
planning and decision-making tool using IMPCO as a case study. A survey research design
was adopted for the study with employees of the Industrial Metallizing and Packaging
Company (IMPCO), Lagos state. The management staff and non-management staff of
IMPCO constituted the population of the study, while the drivers and messengers were
excluded. Using a purposive sampling technique, the sample size was Two Hundred and
Thirty- Eight (238). The sample size comprises of 52 management staff and 186 non-
management staff, the data was collected through the use of a questionnaire and analyzed
with both descriptive statistics (Mean, standard deviation) and inferential statistics (Simple
Linear Regression, Chi-square). The finding of hypothesis one ( β 1 = .056; R2 = .879; t-
value=24.638; F=607.038; P-value= .000) indicated that Accounting information systems
has been used to a greater extent as planning and decision-making tools at Industrial
Metallizing and Packaging Company. The finding of hypothesis two ( β 1= .024; R2= .541; t-
value= 8.583; F= 73.663; P-value= .000) revealed that Accounting information systems
have a significant benefit in planning tool at an Industrial Metallizing and Packaging
company. Also, the finding of research hypothesis three ( β 1= .045; R2= .941; t-value=
37.223; F= 1385.527; P-value= .000) revealed that Accounting information systems have a
significant role in decision-making at an Industrial Metallizing and Packaging company.
Lastly, the result of hypothesis four (Pearson Chi-square has a value of (16) = 720.000. P<
0,05) indicated that there are major challenges in using accounting information systems as a
planning and decision-making tool at an Industrial Metallizing and Packaging company.
From the findings, the study concluded that an accounting information system (AIS) is an
effective planning and decision-making tool at an Industrial Metallizing and Packaging
Company (IMPCO) in Nigeria. The study recommended that the management of IMPCO
should intensify the use of AIS to further enhance their planning and decision towards
performance of their company.
Keywords: Accounting Information System (AIS), Planning, Decision-making and Industrial
Metallizing and Packaging Company (IMPCO).
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY

The capability and fortitude to choose strategic initiatives and courses of action that can
advance the organization are one of the traits of executives in an organization. Thereby,
making decisions is a regular part of life, and management typically involves doing this
(Kanakriyah, 2017). It has been stated that management and decision-making go hand in
hand and shouldn't be separated. Selecting the finest alternative course of action to take to
make the best decision is the process of decision-making. As a result, directors and managers
in an organization require some direction, either from experience or from precedent-setting
events. Since this advice typically takes the form of facts and information, management
accounting is used to provide financial and economic statistics (Gebremedihin, 2019). To
make decisions that may affect a business's ability to develop and survive, accounting
information is used as the basis. The accuracy of any organization's financial status is also
understood using this method.
Decisions can be made for the day-to-day operations of the firm (operational decisions),
short-term planning (tactical decisions), or long-term planning (strategic decisions) (Misni &
Lee, 2017). The majority of decisions have a long-term impact on how a business operates,
thus it is critical to verify that the accounting data that will serve as the decision's foundation
has been properly analyzed. To guarantee that the decision is founded on solid evidence and
guided by accurate findings from earlier events and the organization's accounting information
systems (Akinrinola, et.al, 2019).
An accounting information system (AIS) is a type of information system that collects,
analyzes, and reports financial activity to provide pertinent data for use in organizational
coordination, control, and decision-making processes (Siqani & Vokshi, 2019). The scholars
emphasized the input and output elements of accounting information systems. On the inputs,
the scholars identified financial activities and the decision-making process of an organization
as an output. Thus, an accounting information system is a germane in the decision-making
process of an organization. Continuing along the same lines, Borhan and Nafees (2018)
defined an accounting information system as the procedure of gathering, interpreting, and
turning data into action. According to this description, an accounting information system is a
computer-based system that gathers data, processes and analyzes it, and then generates
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output. Manchilot (2019) states that an accounting information system may be a computer-
based electronic system used for gathering, storing, processing, and communicating financial
and accounting data through financial statements to support and guide organizational
decision-making processes. Since they offer a foundation for the functionality of all
information systems, computers serve as the central repository for accounting data. Evidence
from the scholar's explanations and the evidence itself showed that a computer system
intended for the use of an accounting information system must have the right software
application installed for the system to function.
The implementation of managerial functions of the company, such as planning and control, is
significantly aided by accounting information systems. To research and evaluate the
objectives specified for the company, AIS provides data for the planning function. The
relationship between cost, volume, and profit is also covered, along with the information
necessary to calculate the degree of their interdependence and interaction. As part of its
planning function, AIS also aids in creating budgets, lists of future needs and financial flows,
and plans for budgets. These activities reflect the various activities of an organization by
developing quantitative criteria and converting them into financial standards, presenting the
work's specific plans and policies, and coordinating efforts between various departments
(Ogbededagu, 2019).
On the other hand, a clear and detailed plan is necessary for the control function to identify
any diversions and to demonstrate the desired objectives. This role is seen as a practical test
of decision-making and implementation, following up on the actual implementation
following the established plans, policies, and standards, discovering deviations and correcting
them, giving reasons to protect the shareholders' property and interests, developing resources,
monitoring organization activity, and achieving the desired goals, ensuring the effectiveness
of the function. Additionally, accounting information systems help the organization's
planning, decision-making, and analysis of economic activities by providing high-quality
information that is consistent with the goals and functions of the AIS based on information
technology (Siqani & Vokshi, 2019).
Arising from the above and given the rate of technology revolution globally and its adoption
in Nigeria’s business parlance, it is germane that for any business, being small, medium,
large, or manufacturing to survive in the current economic situation, an accounting
information system could be adopted and implemented fully to meet the financial challenges
and to edge out other competitors through quality financial information. From the
aforementioned, business classifications, Industrial Metallizing and Packaging company
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(IMPCO). The widest selection of plastic packaging goods is produced in Nigeria by IMPCO.
The company aims to offer customers exceptional value by combining packaging design,
mold fabrication, bottle production, and decoration all in one place. This offers significant
flexibility and a variety of options while streamlining the process of getting a product to
market. Hence, the pertinent question is; "To what extent the accounting information system
is applied by the management of an Industrial Metallizing and Packaging company, in
Nigeria".
To empirically answer the question, the current study seeks to examine the extent to which
accounting information systems are been used as planning and decision-making tools at
Industrial Metallizing and Packaging company; identify the benefits of using an accounting
information system as a planning and decision-making tool; and the challenges of using the
system at an Industrial Metallizing and Packaging company.
1.2 STATEMENT OF PROBLEM

The usage of accounting information systems has become a crucial component in the
evolving competitive climate for manufacturers to make decisions quickly and effectively.
Although accounting information systems are highly valued in business concepts, some firms
don't seem to have fully embraced the system in their financial operations. The application of
the system's application problems may be to blame for the application gaps. If an
organization has such experiences, it may struggle to provide quality accounting information,
which could have a negative impact on planning and decision-making and ultimately harm
the organization's performance. The applications might be attributed to the challenges
embedded in the application of the system. With such experiences, the organizations could
have issues in providing quality accounting information which could adversely affect
planning and decision-making capable of affecting the performance of the organization. Otley
(2019) asserts that incorrect accounting information, the implementation of an incorrect
accounting information system, or uncertified accountants providing inaccurate information
to a company can result in decisions that are detrimental to the company's success.
From the empirical review of accounting information systems as a tool for planning and
decision-making, shreds of evidence revealed that studies abound on the phenomena in other
countries and Nigeria in particular. However, one strand of the studies focused on accounting
information systems and decision-making processes as well as in organizations (Emmanuel,
2015; Rizza, Leotta & Ruggeri, 2017; Ha, Manh & Anh, 2018; Gebremedihin, 2019;
Kyeremeh, Kyeremeh & Forson, 2022; Adenike, 2017; Akinrinola, et.al, 2019; Akinade,
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2019; Akeem, et.al., 2019). The second strand of the literature concentrated on the link
between accounting information systems on organizational performance and the effectiveness
of accounting information systems in an organization (Alnajjar, 2017; Siqani & Vokshi
(2019); Meiryani, et.al., 2020; Hanum, et.al., 2021; Ganyam & Ivungu (2021); Teru, et.al,
2018; Ogbededagu, (2019); Daniel & Inim, 2019; Tinuola, et.al., 2019; Orga & Onoh, 2020;
Johnbest, et.al, 2020).
Shreds of evidence from the current studies review suggested that the scholars neglected
planning, which is an important management principle in their various studies. On that note,
there is a methodologies issue and gap to be resolved. Thus, to fill the identified gap, the
current study sought to expand the existing studies on accounting information systems and
decision-making by including “planning”. In such a circumstance, the current study will
differ from the existing studies and expand the frontiers of knowledge on the study
phenomena.
1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to assess the Accounting information system as a planning
and decision-making tool using Industrial Metallizing and Packaging Company as a case
study. The specific objectives are to:
i. Examine the extent to which accounting information system are been used as a
planning and decision-making tool at Industrial Metallizing and Packaging company.
ii. Identify the benefits of using an accounting information system as a planning tool at
an Industrial Metallizing and Packaging company.
iii. Evaluate the roles of using an accounting information system as a decision-making
tool at an Industrial Metallizing and Packaging company.
iv. Investigate the challenges of using accounting information systems as a planning and
decision-making tool at an Industrial Metallizing and Packaging company.
1.4 RESEARCH QUESTIONS

The following questions will be answered in the current study;
i. To what extent has accounting information system been used as a planning and
decision-making tool at Industrial Metallizing and Packaging Company?
ii. What are the benefits of using an accounting information system as a planning tool at
an Industrial Metallizing and Packaging Company?
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iii. What is the role of accounting information system as a decision-making tool at an

Industrial Metallizing and Packaging Company?
iv. What are the challenges of using an accounting information system as a planning and
decision-making tool at an Industrial Metallizing and Packaging Company?
1.5 RESEARCH HYPOTHESES

The following null and alternative research hypotheses shall guide the current study.
Hypothesis One
H0: Accounting information systems has not been used to a greater extent as a planning and
decision-making tools at Industrial Metallizing and Packaging Company
H1: Accounting information systems has been used to a greater extent as planning and
decision-making tools at Industrial Metallizing and Packaging Company.
Hypothesis Two
H0: Accounting information systems has no significant benefits as a planning tool at an
Industrial Metallizing and Packaging company
H1: Accounting information systems has significant benefits as a planning tool at an
Hypothesis Three
H0: Accounting information systems does not have a significant role in decision-making
at an Industrial Metallizing and Packaging company
H1: Accounting information systems have a significant role in decision-making at an
Hypothesis Four
H0: There are no major challenges in using an accounting information system as a
planning and decision-making tool at an Industrial Metallizing and Packaging
company
H1: There are major challenges in using accounting information systems as a planning and
decision-making tool at an Industrial Metallizing and Packaging company
1.6 SCOPE OF THE STUDY

The scope of the study is categorized into three, which are content scope, time scope, and
geographical scope. Hence, the current study will be guided by the content scope and
geographical scope. For the content scope, the current study will examine the extent to which
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accounting information systems is been used in an Industrial Metallizing and Packaging

company; identify the benefit of accounting information systems as planning tools as well as
decision-making tools; examine the challenges of accounting information system and its
impact on planning and decision making at Industrial Metallizing and Packaging company
(IMPCO). The choice of the company was rooted in the long and proud history of more than
30 years as a leading manufacturer of quality plastic containers and closures, supplying
packaging to a variety of multinational brand owners. Besides, the company uses a variety of
techniques in its operations.
On the geographical scope, the study will be carried out in Lagos state, Nigeria. The choice
of the local is premises on the adoption of technology, which is on the increase in the country
by most organizations. Many organizations had adopted technology in various capacities to
enhance their operations and to compete effectively with their counterparts. One of the
companies is Industrial Metallizing and Packaging Company.
1.7 SIGNIFICANCE OF THE STUDY

The outcome of the study will be significant to the management of the Industrial Metallizing
and Packaging Company; the management of other companies, users of accounting
information, and other scholars. By examining the extent of usage of accounting information
systems at Industrial Metallizing and Packaging company, the outcome of the study will
inform the management of the company to review their level of usage or otherwise. Also, the
outcome of the study will reiterate the benefits of accounting information systems in
decision-making. On that note, the management could use the information to plan and control
their current and future operations. Based on that, they will come up with their management
decision and information on long-term plans.
The management of other companies will also find the outcome of the study useful for their
operations. For instance, by identifying the benefits of accounting information systems, the
management of other companies would see the reasons to intensify efforts in adopting
accounting information systems to further enhance their decision-making processes. Further,
identifying the challenges in implementing accounting information systems will enable the
managers to adequately implement the system in planning and decision-making processes.
In addition, users of accounting information will also find the outcome of the study useful as
the study will establish the impact of accounting information systems on planning and
decision-making in an organization. With that, the users of the accounting information will be
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well informed on the quality of information available and they can use it to make investment
decisions where necessary.
Lastly, other scholars will also find the outcome of the study useful as the findings will add to
the empirical findings on accounting information systems from both empirical ground and
methodological perspectives. One of the novels of the current study is to address the
methodological issue identified in the existing study and thus expand the frontier of
knowledge on the phenomena of the study.
1.8 DEFINITION OF TERMS

In the context of the current study, the following concepts need further clarification;
Accounting: Accounting is the process of documenting, categorizing, and summarizing in a
meaningful way and terms of money, transactions, and events that are at least part
of a financial nature, as well as analyzing the outcome.
Information: Information refers to the data that has been transformed into a more valuable
form through a process. Thus, information is provided from accounting about
how a business relates to internal and external users, including investors,
managers, and others.
Accounting information: Accounting information is a system responsible for the provision
of past and future financial information that relates to budgeting for resources and
activities, accounting for cost, assets and liabilities, capital and operating
expenses, and different income streams of the organization.
Accounting information system (AIS): It is a computer-based electronic system used to
gather, store, process, and convey financial and accounting data through financial
statements to support and guide business decision-making.
Planning: Planning is concerned with establishing goals and objectives as well as creating a
plan to achieve them. Additionally, it guides an organization's operations
throughout a specified time frame.
Decision-making: Decision-making is a purposeful choice from several alternative courses
of action. Making a decision is necessary when there is no one clear course of
action to follow.
Industrial Metallizing and Packaging Company (IMPCO): The Company is one of the
manufacturing companies in Nigeria that specialize in plastic packaging products.
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Akeem, L. B., Ajayi-Owoeye, A. O., Oluwayomi, O., & Olumide, O. A. (2019). Accounting
Information and Managerial Decision Making in the Manufacturing Industry in
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CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
The chapter presents the literature review of the current study and was divided into three
sections. The first section detailed the conceptual clarifications of the study. While section
two provided the relevant theories of the study (theoretical review), section three presented
the theoretical framework, which is the theory that underpins the study. The last section
presents the empirical review of the previous studies on the phenomena of the study.
2.2 CONCEPTUAL CLARIFICATIONS

This sub-section presents the discussion of the relevant concepts in the study as explained by
the previous scholars. The concepts are; information, accounting information, Accounting
Information system (AIS), planning, and decision-making.
2.2.1 CONCEPT OF INFORMATION

Information is made up of data that has been retrieved, processed, or used in some other way
for informational or inferential reasons, to supplement data, or as a foundation for forecasting
and decision-making. In contrast to information, data are essential facts and figures that have
little to do with it (Josephine & Nnadi, 2020). From a different perspective, information,
according to Holmstrom and Koli (2002), is an accumulation of data presented in a way that
is understandable and conducive to communication. This could include information in any
form written or printed on paper, kept in computer databases, gathered online, etc.—as well
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as insider information held by an organization's staff members. In its broadest sense,

information is data about the real world that is sent through signals, symbols, and signs and is
received by a person during the cognitive process. Information has many uses, but one that
stands out is in accounting, where it is known as accounting information.
2.2.2 CONCEPT OF ACCOUNTING INFORMATION

Different academics have viewed accounting information from a variety of perspectives.
Krechel and Salterio (2016), for example, see accounting as an information system that
generates reports to interesting parties on economic activity and the state of the company.
The academics contend that the main goal of accounting is to deliver data that is helpful for
management planning and decision-making. From that angle, it follows that accounting
provides data that affect managerial choices.
Similarly, Peppand and Ward (2016) contend that the purpose of accounting is to only
generate data that are employed in managerial processes. Accounting also provides relevant
parties with information about the state of the business and the economy. The scholars
explained accounting information from its purposes and its uses as well as the user of the
information.
Unlike the researchers mentioned above, Pratt (2016) said that accounting information is
knowledge or news concerning the estimation of financial rulers. This accounting data is
essential to a wide range of operations, both within and outside of management planning and
decision-making. Reflecting on the assertion, Pratt (2016) described information accounting
and its relative position with management planning and decision-making. The crux of the
scholar focused on the source of accounting information as well as its importance in planning
and decision-making.
Jackson (2018), like Pratt (2016), views accounting information as data arranged specifically
for use in decision-making. The scholar went on to say that these economic measurements are
compiled in reports that carry the data necessary for planning activities, controlling
operations, and decision-making by managers of the business units, just as physical
measurements are provided by the metric system and are expressed in monetary terms. The
scholarly explanation seems more details than the previous ones as it identified the sources of
the information as organized data for decision-making; the data are put together in a report
for planning activities.
To this end, shreds of evidence revealed that accounting information has different facets as
depicted by the previous scholar. Thereby, following Jackson (2018), accounting information
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entails the compilation and generation of reports for the use of management and other
stakeholders.
2.2.3 CONCEPT OF ACCOUNTING INFORMATION SYSTEMS (AIS)

The Accounting Information System (AIS) has historically concentrated on gathering,
processing, and communicating financial-oriented information to a company's internal
stakeholders as well as external parties (including investors, creditors, and tax agencies)
(principally management). In addition to the general view on the concept, Borhan and Bader
(2018), posits that an accounting information system is the procedure of gathering, analyzing,
and turning data into action. This definition justifies an accounting information system as a
computer-based system that gathers data, processes and analyzes data, and then delivers
results or output to the relevant stakeholders.
In contrast, Manchilot (2019) clarified that an accounting information system may be a
computer-based electronic system used for gathering, storing, processing, and communicating
financial and accounting data through financial statements to support and guide the
organizational decision-making process. Computers are the center of accounting data because
they offer a foundation for all information systems' usability. The required computer system
must have the correct software program installed for an accounting information system to
function. According to Kashif (2018), an accounting information system is a collection of
personnel, tools, rules, and practices that collaborate to gather data and convert it into usable
information.
Supporting the previous scholar, Borhan and Bader (2018) posit that an accounting
information system is a combination of synchronized business, components, and resources
that processes, manages, and controls data to produce and transport the pertinent information
for decision-makers in the firm. Like any other system, accounting information must go
through several steps to work. It is a coordinated and homogenous group of assets and diverse
elements (people, capital, etc.) that operate in concert within a predetermined framework to
advance corporate objectives.
From the foregoing, it can be inferred that an accounting information system (AIS) is a
system that gives people access to data or information about an organization's operations to
support the activities of employees, owners, customers, and other stakeholders in the
environment of the organization. This access to information is made possible by the efficient
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and prompt delivery of information to those who are authorized. In addition, the information
seems to enhance organizations’ planning and control.
2.2.4 PLANNING AS A CONCEPT

Planning as a principle of management involves selecting missions and objectives and the
actions to achieve them; it requires decision making that is, choosing future courses of action
from among alternatives (Edoko, et.al. 2018). It is also part of strategic thinking and action
which every business, small, medium, or large scale must engage in to succeed in today's
business world. Thereby, resource managers/entrepreneurs must translate this vision into a
sound mission statement that will sharpen their focus and propel their business enterprise to
achieve. It is this set of clearly defined corporate objectives that will help them to come up
with the corporate strategy which spells out how to achieve the stated objectives of the
enterprise. These can be in form of actions; plans, business activities, etc. (Fajana, 2000).
Reflecting on the above, planning is the process through which managers set objectives and
specify how they will be accomplished. Making decisions, or picking one path of action from
a range of potential future actions, is a necessary component of planning, which includes
determining missions, objectives, and the activities to achieve them. Also, planning guides
the management on what to do and how to go about it in line with the organizational
objectives. From the practical lingo, planning processes involve, identifying the objectives,
searching for an alternative course of action, gathering data about alternatives, and selecting
an appropriate alternative course of action (Opoku-Ware, 2015). As applicable to other
organizations, planning is essential in running the activities of an Industrial metalizing and
packaging company (IMPCO), which is the case study.
2.2.5 ACCOUNTING INFORMATION AND DECISION-MAKING

Making decisions has been defined as making a deliberate choice among several possible
causes of action. Managers can get the information they require from AIS. One of the most
crucial elements that affect all businesses and determine their success or failure in achieving
predetermined goals and objectives is management choice. Accounting can be thought of as
the process of locating, quantifying, and disseminating economic data so that users of the
information can make informed decisions. The fundamental purpose of accounting
information, as stated in Srivastava and Lognathan (2016), is to aid in decision-making as
better decisions are made as a result of an understanding of accounting information.
Controllers can therefore direct management's decision-making to decisions that are
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consistent with the organization's objectives by reporting and gathering accounting

information (Opoku-Ware, 2015). According to Pandey (2000), decision-making is the study
of locating and selecting options following the decision-values makers and preferences. The
decision maker chooses the data points they believe are important for their choice.
Furthermore, accounting data may influence the choice if its input percentage relative to non-
accounting information is greater than zero. This percentage or the usage of accounting data
varies from decision to decision and from the decision-maker, whose choice may be
influenced by experience, perceptions, and aims. The likelihood that accounting information
is used for decision-making also increases if the information is pertinent to the decision, the
decision-maker believes the accounting information to be accurate, or if there is a lack of
sufficient non-accounting information. However, accounting information is significantly
simpler to understand, describe, and quantify when compared to non-accounting information.
Accounting information systems improve decision-makers by utilizing the data found in
financial statements for specific decisions (or in the direction of the decision models that are
used to make those decisions and use that data as input). Users of financial reports may be
able to use the information directly to make decisions or may need to hire experts to help
them understand the message and how to use it to make decisions (Jones, 2013).
2.3 RELEVANCE OF ACCOUNTING INFORMATION SYSTEM

The primary purpose of AIS is to designate information systems that are crucial to the
accomplishment of managerial tasks such as planning and control in the company (Samer,
2016). When it comes to researching and assessing the objectives set for the organization,
AIS offers data that is useful for planning. Additionally, it offers the data necessary to assess
the degree of interdependence and interaction between cost, volume, and profit.
According to Frezzatti, et.al. (2011), AIS under the planning function also helps in preparing
lists of future needs and financial flows, planning budgets for the development of quantitative
criteria, and converting them into financial standards to reflect the different aspects of an
organization's activities, presentation of the detailed plans and policies of the work, and
coordination across different departments"
On the other hand, the control function necessitates a precise and well-defined strategy that
outlines the desired goals and establishes the parameters against which outcomes are assessed
and scrutinized to identify and eliminate distractions. This role is seen as a practical test of
decision-making and implementation, monitoring the actual implementation by the
established plans, policies, and standards, finding deviations and correcting them, providing
25
explanations for why certain things happened, and safeguarding shareholders' interests,
developing resources, monitoring organizational activity, and achieving the desired goals,
thereby ensuring effectiveness (Onaolapo & Odetayo, 2012).
According to Urqua, et.al. (2011), computerized accounting tools are a crucial component of
AIS and have a direct impact on the financial and economic performance of businesses. A
high degree of competitiveness, better administration of internal business transactions, and
greater response to a changing environment are potential benefits of effective AIS
implementation in an organization. There is also a boost to the dynamic nature of firms with a
greater flow of information between different staff levels and the possibility of new business
on the network and improved external relationships for the organization, mainly with foreign
customers accessed through the firm’s web quantitative value to past, present, and future
business events (Rehab, 2018). Decision-makers frequently use accounting information,
whether it be in the form of quarterly reports or specific analyses. These choices could relate
to pricing, manufacturing levels and product mix, outsourcing, inventory management,
customer service, labor agreements, and capital investments (Samer, 2016).
2.3.1 ACCOUNTING INFORMATION SYSTEMS AS A PLANNING TOOL

According to its goals and functions, AIS uses information technology to deliver high-quality
information to support organizational control, planning, decision-making, and analysis of
economic operations (Susanto, 2015). AIS and organizational effectiveness are strongly
correlated, which suggests that having access to AIS would increase an organization's
effectiveness. According to Priyia and Longnathan (2016), management faces ongoing
challenges with planning, decision-making, and control operations when managing the affairs
of the business, particularly given the fact that resources are finite and constrained. As a
result, the availability of good AIS is required for appropriate and accurate decision-making.
The management requires precise and useful information from its accountant to make a wise
decision. To help the management make decisions, the accountant provides them with the
information they require. Mismanagement, fraud, and other irregularities have been seen to
be prevalent in the organization recently. Also, Priya and Longnathan (2016) opined that
there is a strong relationship between the use of organization AIS and managerial efficiency,
which is a result of changes in information technology.
2.3.2 SUBSYSTEMS OF ACCOUNTING INFORMATION SYSTEM

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The four main subsystems of an accounting information system, according to Hall (2008), are
the fixed asset system, the general ledger/financial reporting system, the management
reporting system as well as the transaction processing system. Multiple documents and
communications for users across the organization are supported by the transaction processing
system daily. The fundamental business systems that support an organization's operational
level are known as transaction processing systems (TPS). A computerized system known as a
transaction processing system executes and records the everyday transactions required for the
operation of a firm (Laudon & Laudon, 2006).
The general ledger/financial reporting system generates standard financial statements,
including income statements, balance sheets, statements of cash flows, tax returns, and other
reports needed by law. This system is intended to gather data and information on AIS,
customers, suppliers, and wages, close accounting books, prepare a trial balance and a list of
results, as well as the organization's budget and reports of revenue and expenditures, and
present these statements to the owners and investors (Samer, 2016). This system's reliance
on computers aids the company in cost-cutting, utilizing the fewest number of employees
possible, as well as in carrying out financial management processes and completing
accounting tasks exactly and systematically.
While the management reporting system provides internal management with special-purpose
financial reports and information needed for decision-making, such as budgets, variance
reports, and responsibility reports, the fixed asset system handles transactions about the
acquisition, maintenance, and disposal of fixed assets.
Samer (2016) also noted a few accounting information system subsystems, such as a payroll
system, customer accounts system, suppliers accounts system, and system for managing
customer accounts. The bills of stored items will be processed by the inventory control
system, which will also find materials that require replenishment and produce reports
outlining the inventory position. The firm benefits from this system's reliance on computers
in providing customer support, tracking changes in inventory levels, cutting costs, and
producing papers. According to data on payment and purchase procedures, the system for
customers' accounts is intended to calculate the amounts due by customers. The system is
also designed to generate monthly customer accounts and credit reports.
A computer-based customer accounts system provides the organization with accurate bills
and monthly reports on credit provided to customers, which in turn enhances the processes of
payment, collection, and provision of liquidity. Suppliers' accounting system provides daily
information on procurement and payment to suppliers, preparing checks, paying bills, and
27
treasury reports. The reliance of this system on the computer results in establishing good
working relationships and achieving a good credit price and taking advantage of discounts
through payment to suppliers quickly and accurately, and financial control over the amounts
paid by the organization.
The payroll system is designed to display daily data on workers and attendance cards,
generate payment checks and workers' payrolls, and prepare special reports on work analysis
The reliance of the system on the computer helps the organization in the preparation and
submission of special reports related to tax, returns, deductions and analysis of labor
productivity and labor costs. The lists of subsystems of accounting information systems are
not limited as these systems are designed for the management of firms to meet their day-to-
day accounting need.
2.4 THEORETICAL REVIEW

This section will present the relevant theories to the current study and the proposed theories
from the literature review are; contingency theory, resource-based view theory, and agency
theory.
2.4.1 CONTIGENCY THEORY
Fiedler introduced the contingency theory as a managerial leadership theory in 1964. The
contingency hypothesis suggests, according to Fiedler (1964), that there is no one optimal
method to lead and that a leadership style that is good in one scenario could not be successful
in others. But Gordon and Miller (1976) set down the fundamental framework for taking into
account accounting information systems from a contingency perspective, where the
accounting information systems also need to be adaptable to the particular decisions being
taken into consideration within a framework. According to contingency theory, an accounting
information system must respond to desired specific decisions while taking the organization's
surroundings and organizational structure into account (Dandago & Rufai, 2014).
Applying this to the matter at hand, contingency theory proposes that managers of enterprises
should pay close attention to how they use accounting information systems, taking care to
adopt the systems that are most suitable for their unique situation. Fiedler's contingency
theory is subject to some challenges. Lack of flexibility, however, is one of the most serious
objections to the contingency theory that pertains to the topic under consideration (Mitchell,
et.al. 2017). According to Fiedler (1964), since natural leadership styles are fixed, changing
the leader is the most effective approach to resolving an issue. The notion forbids leaders
28
from exhibiting flexibility. Also, managers will spend more money changing an accounting
information system if it does not meet their needs for required decision-making.
2.4.2 RESOURCE-BASED VIEW THEORY

Barney developed the resource-based view paradigm in 1991. The resource-based view, as
advanced by Barney (1991), asserts that the source of sustained advantage results from doing
things better; from generating superior talents and resources. The resource-based view gives a
method for assessing prospective factors that might be used to give business organizations a
competitive edge. The resource-based perspective has several important lessons, including
the fact that not all resources are equally important or have the capacity to generate long-term
competitive advantage. The capability, competence, and skills levels of the resource-based
paradigm are separated. Cragg, et.al. (2011). Competence and skills are related to several
skill sets, including technical, managerial, and general management skills. Capability relates
to how businesses manage their resources; competence refers to how well those resources are
managed. A resource that is available to businesses is accounting information systems.
According to the resource-based perspective theory, accounting information systems and
organizational performance should be managed by firms correctly and sufficiently so that
they can make the most of their capabilities, competence, and skill sets. Several people have
criticized the resource-based view hypothesis.
One of these criticisms is the lack of significant managerial implications or operational
validity of the theory (Priem & Butler, 2001). It appears to instruct managers to create and
acquire priceless, uncommon, unique, and non-replaceable resources as well as a suitable
organization, but it is quiet on how to do so (Connor, 2002; Miller, 2003). According to
Lado, et.al. (2006), there is a conflict between descriptive and prescriptive thinking in the
resource-based view theory. However, according to Barney and Clark (2007), the resource-
based view theory was never meant to offer managerial advice. Rather, it aims to explain why
certain organizations have a prolonged competitive advantage over others. In agreement with
this claim, whatever explanations the resource-based view theory might offer may not be
suggestive but still be useful to managers, therefore there may be no need to compel the
resource-based view theory to come up with theoretically sound recommendations.
2.4.3 AGENCY THEORY

Agency theory was developed by Jensen and Meckling (1976) who argued the theory refers
to the relationship between the principals, such as shareholders, and agents such as the
29
company executives and managers. In this theory, shareholders who are the owners or
principals of the company hire the gents to perform work. Principals delegate the running of
the business to the directors or managers, who are the shareholder's agents.
Haslinder and Benedict (2009) define the agency theory as “the relationship between the
principals, such as the shareholder, and agents such as the company executives and
managers”. This theory seeks to explain the problem that arises from the separation of
ownership and control. The conflict of interests between managers and principals refers to the
tendency that the former may become self-interested and opportunistic in the course of doing
business. However, the principal can counter such problems by incurring agency costs which
include monitoring expenditures such as auditing, and budgeting. The share price that
shareholders (principals) pay reflects such agency costs. To increase firm value, one must
therefore reduce agency costs. This is one way to view the linkage between corporate
governance and corporate performance. The agency theory prescribes strong director and
shareholder control. It advocates that the fundamental function of the board of directors is to
control managerial behavior and ensure that managers act in the interests of shareholders.
Firms aim to maximize the wealth of shareholders, and it might be different from the personal
interest of managers. The agent (managers) might have more relevant information compared
with shareholders, and the information asymmetry occurs, and this would raise the
possibilities that agents can behave in ways to pursue their interests.
2.5 THEORETICAL FRAMEWORK

This section will present and discuss the relevant theories that will underpin the current study.
From the relevant theories reviewed, the current theory hinges on contingency theory.
According to contingency theory, an accounting information system must respond to desired
specific decisions while taking the organization's surroundings and organizational structure
into account (Dandago & Rufai, 2014). This implies that Accounting Information can be
applied to every situation since its effectiveness and usefulness are contingent upon certain
external factors such as market and environment and internal factors such as technology and
strategy. Thereby, the accounting information system must be in line with the organization,
strategy.
2.5.1 RELEVANCE OF THE THEORY

The current study set forth the fundamental framework for considering contingency factors
while analyzing accounting information systems. According to Gordon & Narayanan (1984),
30
designing management accounting systems is fundamentally influenced by environmental

uncertainty in successful businesses. This study's primary finding was that, in addition to
internal, financial, and ex-post information, decision-makers also prefer to seek more
external, nonfinancial, and ex-ante information when environmental uncertainty increases.
Langfiled and Smith, (1997) extensively analyzed the relationship between strategy and
accounting information and suggest that it is one of the consequences of strategy. Studies by
Chenhall (2003), and Gerdin and Greve, (2004) assert that accounting information plays a
proactive role in strategy management, acting as a mechanism that enables organizational
strategy
Although contingency theory has been extensively studied over the past two decades, it has
received very little attention in terms of the variables that affect accounting information
systems. The management of the evolution of measuring systems seems to be poorly handled
by most businesses. Despite the flaws of contingency theory, it is still relevant in explaining
the use of accounting information systems as a planning and decision-making process.
2.6 EMPIRICAL REVIEW

In the current study, the researcher reviews previous studies on accounting information
systems as planning and decision-making tools from other countries and Nigeria. The
categorization of the review provided an opportunity to identify the lacuna (gaps) in the
previous findings and to expand the frontier of knowledge on the study phenomena.
2.6.1 PREVIOUS STUDIES FROM OTHER COUNTRIES

Emmanuel (2015) examined the impact of Accounting Information on Managements
Decision-Making process in process in Pharmaceutical Companies in Ghana: Case study
Kinapharma Ltd). Using qualitative analysis, the study established that financial information
affects the decision-making process at Kinapharma Ltd. It was also revealed that the role of
management accounting information is interwoven and integrated into the whole decision
course, having the ability to influence the process at almost every stage.
Hla and Teru (2015) conducted literature research and analyzed the effectiveness of the
accounting information system. Many businesses are adopting this approach primarily to
boost their competitiveness and business efficiency. If there is a strong internal control
system in place, the qualitative characteristics of any accounting information system can be
preserved. Internal controls are used to guarantee the accomplishment of operational
objectives and performance. Therefore, the goal of this study is to evaluate the effectiveness
31
of accounting information systems on performance measures using secondary data. It was

discovered that accounting information systems are crucial to both businesses and
organizations because they aid in management decision-making, internal controls, financial
report quality, and company transactions. They also play a significant role in economic
systems.
Tan (2016), test the impact of AIS on internal auditors in Turkey, he revealed the important
role of accounting information systems in companies through enable all levels of
management to access comprehensive information that goes into the planning and controlling
of activities within business organizations. In addition, AIS provides high-quality information
to internal and external users and typically covers six main aspects: people, procedures, data,
software, information technology infrastructure, and internal controls.
Using literature review analysis Rizza, et.al. (2017) carried out a study on accounting
information systems as sensemaking tools in the decision-making processes of Small firms in
Ghana. The findings revealed that an accounting information system is a sensemaking tool in
the decision-making processes of small firms.
Further, Alnajjar (2017) looked at the impact of Accounting Information Systems on
Organizational Performance: A Study of SMEs in the UAE. Using, Structural Equation
Modeling (SME), the study indicated that accounting information systems significantly
impact the performance management and organizational performance of that organization.
Thereby, using accounting information systems, decision-makers obtain useful information
and use it in decision-making and strategy-building to achieve organizational goals and
objectives, which should increase the company’s performance.
Adopting a theoretical approach, Ha, Manh and Anh (2018) examined the system of
Management Accounting information to support decision-making in business in Vietnam.
The study established that a decision support system has a practical effect as well as brings
long-term benefits for organizations, enterprises in general, and managers in particular.
Also, Gebremedihin (2019) examined the impact of the Accounting information system on
the decision-making process in local Non-Governmental Organizations in Ethiopia: In the
case of the Wolaita Development Association, SNNPR, Ethiopia. Using the Student t-test, the
findings indicated that the accounting information system has a significant effect on the
decision-making process for those development associations.
In another study, Siqani and Vokshi (2019) used Correlation and multiple linear regression
analysis to assess the impact of accounting information systems on the effectiveness of public
enterprises in Kosovo. Their findings emphasized the importance of the accounting
32
information system towards increasing effectiveness in public enterprises, respectively

providing support for quality of financial reporting, decision-making process, control system,
performance, and facilitation of transactions process.
In Indonesia, Meiryani, et.al. (2020) adopted Structural Equation Modelling using partial
least squares (SEMPLS) to look at the accounting information systems as a critical success
factor for increased quality of accounting information. They revealed that unqualified
accounting information affects the quality of accounting information in business and non-
business institutions.
Similarly, Hanum, et.al. (2021) carried out a study on the Impact of Accounting Information
Systems on Organizational Performance through Good University’s Private Governance in
Indonesia. Using Smart PLS data processing tools, their findings indicated that accounting
information systems have a significant impact on the performance of Good University
Governance in Indonesia.
In another study, Ganyam and Ivungu (2021) adopted a review of the literature to study the
effect of Accounting Information Systems on the Financial Performance of Firms. They
established that accounting information systems had been widely used by many organizations
to automate and integrate their business operations, efficiency, and competitive advantages.
Kyeremeh, et.al. (2022) in their study looked at the role of accounting information systems in
organizational Decision Making: Evidence from the banking sector in Ghana. Using
percentages, statistical tables, and charts, the study revealed that the accounting system helps
management in decision-making and planning. The study also revealed that challenges are
also associated with the accounting information system.
2.6.2 PREVIOUS STUDIES FROM NIGERIA
Adenike (2017) carried out a study on the impact of accounting information systems and
management decision-making in a manufacturing company in Nigeria. Using Chi-square
statistics, the study concluded that the use of accounting information enhances decision-
making in manufacturing industries and that there is a strong relationship between the use of
organizations' AIS and managerial efficiency. In addition, the study also indicated that AIS
could be used to control fraud and mismanagement.
Teru, et.al. (2018) in another study appraised the accounting information system: relevance in
firm performance. Using the review of secondary data, the study established that the
implementation of accounting information led to better decision-making and effective control
systems and improved firms' performance.
33
Akanbi and Aruwaii (2018) also looked at the effect that manufacturing businesses' adoption
of accounting information systems (AIS) had on their overall accounting operations and
attempted to quantify the relationship that exists between AIS devices and accounting
operations in Nigeria. Using regression and correlation analyses. If appropriately
implemented, AIS devices have a 68.70 percent influence on the efficiency of accounting
activities in the manufacturing industries, according to the regression model's results, which
had an F-value of (0.000 0.050) and an Adj R2 of 0.6970. The outcome of Kendall's
correlation matrix revealed a statistical coefficient of 62 percent, indicating a strong
correlation between the dependent and independent variables. Additionally, the coefficient of
determination (R2) = 0.418 revealed a significant relationship in the use of the accounting
information system to expedite the process. According to the study's findings, accounting
information system devices are naturally and simultaneously appropriate for manufacturing
industries engaging in accounting activities. It also showed that there is a significant
connection between accounting activities and accounting information systems.
Ogbededagu (2019) carried out a study on the impact of accounting information systems on
the performance of the petroleum industry in Nigeria. Using Panel multiple regression, the
study revealed that the oil and gas industry in Nigeria doesn't implement effective AIS in
their organization which is the reason for the low performance of the management in the oil
and gas industry.
Further, Akinrinola, et.al. (2019) look at the impact of accounting information systems as an
aid to the decision-making process in Deposit Money Banks in Nigeria. Adopting ordered
logistics regression, the study established that the accounting information system has a
significant positive effect on decision-making. It was also revealed that the decision-making
process is influenced by the quality of accounting information systems across DMBs.
Also, Akinlade (2019) examined the impact of accounting information on the decision-
making of stakeholders in Nigeria. Using simple percentage and t-test statistics, the findings
revealed that there is a significant relationship between accounting information and the
decision-making of the users of financial statements.
Similarly, Akeem, et.al. (2019) in their study adopted regression Analysis to examine the
impact of accounting information and managerial decision-making in the manufacturing
industry in Nigeria. Their study revealed that accounting information has an effect on
managerial decision-making in the Nigerian manufacturing industry.
Also, Daniel and Inim (2019) looked at the impact of Accounting Information Systems as a
management tool in organizations using Content analysis. Their result established that
34
information quality and system quality have significant influences on accounting information
systems' effectiveness. Similarly, Tinuola, et.al. (2019) adopted secondary data analysis to
examine the impact of accounting information systems on the organizational effectiveness of
Automobile companies in Nigeria. Their study established that accounting information
systems are an important mechanism for organizations' effective management, decision-
making, and controlling activities.
Using Chi-square test statistics, Orga and Onoh (2020) carried out a study on the role of
accounting information systems on organizational performance: A case study of a Nigerian
bottling company). Their findings indicated that the accounting information system had a
positive significant effect on the profitability of NBC. Further, the study revealed that
information accounting will enhance decision-making.
John-Best, et.al. (2020) in their study considered the impact of Accounting Information
systems on the operational performance of Nigeria’s small-scale business enterprises.
Adopting, Chi-square test statistics, and Pearson’s’ Product Moment Correlation coefficient,
They revealed that accounting system record keeping is indispensable and that accounting
system does have an influence on the operational performance of small-scale business
enterprises. Irrespective of the size of the organization.
Akanni, et.al. (2020) investigated the impact of accounting information systems on company
performance in Nigeria. The function of experts in accounting, information technology, and
academia was investigated. The single-factor ANOVA technique was used to test the
hypothesis after 25 questionnaires were recovered and evaluated to achieve the study's goal.
The research's conclusions showed that accounting information systems in business
organizations perform better in Nigeria since the observed F of 251.43 was higher than the
critical value of 2.74. Corporate entities should, as advised, make significant investments in
accounting information systems, adopt a merit-based hiring policy, and ensure that
accounting information systems workers receive regular training.
35
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41
CHAPTER THREE
METHODOLOGY
3.1 INTRODUCTION
The chapter will discuss the study's methodology and methods. The term "methodology"
refers to the justification for the overall research strategy and the analytical framework. In
contrast, methods are the particular techniques and steps employed for data gathering and
analysis to address the stated research objectives. Thus, this chapter will include the
following;
3.2 RESTATEMENT OF RESEARCH QUESTIONS

The research questions stated in chapter were re-stated in this methodology section as
follows;
i. To what extent has the accounting information system been used as a planning and
decision-making tool at Industrial Metallizing and Packaging Company?
ii. What are the benefits of using an accounting information system as a planning tool at
an Industrial Metallizing and Packaging Company?
iii. What is the role of accounting information system as a decision-making tool at an
Industrial Metallizing and Packaging Company?
iv. What are the challenges of using an accounting information system as a planning and
decision-making tool at an Industrial Metallizing and Packaging Company?
42
3.3 RESTATEMENT OF RESEARCH HYPOTHESES
The four research hypotheses formulated in the study are re-stated as follows;
Hypothesis One
H0: Accounting information systems has not been used to a greater extent as a planning and
decision-making tool at an Industrial Metallizing and Packaging Company
H1: Accounting information systems has been used to a greater extent as a planning and
decision-making tool at an Industrial Metallizing and Packaging Company.
Hypothesis Two
H0: Accounting information systems has no significant benefits as a planning tool at an
H1: Accounting information systems has significant benefits as a planning tool at an
Hypothesis Three
H0: Accounting information systems does not have a significant role in decision-making
at an Industrial Metallizing and Packaging company
H1: Accounting information systems have a significant role in decision-making at an
Hypothesis Four
company
H1: There are major challenges in using accounting information systems as a planning and
3.4 RESEARCH DESIGN

The research design used in the study was a descriptive survey. This study's descriptive
survey research design is ideal since it enables the collection of data from a sizable
population and is also suitable for the descriptive analysis of a sizable sample size. Based on
its principles and benefits, a survey research design was the best option to assess the
Accounting information system as a planning and decision-making tool using Industrial
Metallizing and Packaging Company, Lagos state as a case study. A survey study design is a
43
methodical way to collect data from entities to create quantitative descriptors of the
characteristics of the wider population to which the entities belong (Adedokun, 2017).
3.5 POPULATION OF THE STUDY

A population is a collection of items that have at least one property in common and are
statistically significant (Vaus, 2011). The population of this study are the management and
non-management staffs of Industrial Metallizing and Packaging Company (IMPCO), Lagos
state. The researcher ensured that the population excluded staffs that do not have anything to
do with accounting information. The population distribution is as shown in Table 3.1.
Table 3.1: Population Distribution

Description Population
Management 52
Non-management staff 186
Total 238
Source: Field Survey (2023)
3.6 SAMPLE SIZE AND SAMPLE TECHNIQUES
3.6.1 Sampling Techniques and Sample Size
Based on the content of the study and the research constructs (accounting information system,
planning, and decision-making tool), a purposive sampling technique will be adopted. The
purposive sampling technique is a type of non-probability sampling that is most effective
when one needs to study a certain cultural domain with knowledgeable experts within.
On the sample size, given the fact that the population is manageable within the time scope, a
total enumeration method was adopted. Thereby, the sample size comprised (52)
management staff and (186) non-management staff. The sample size thus becomes Two
Hundred and Thirty- Eight (238) staff.
3.7 METHOD OF DATA COLLECTION

The study used primary data. The researcher gathered exact data that is relevant to the
objectives of the study by using primary data. Primary data is more reliable than secondary
research because the researcher can check the validity and reliability of the data gathered
(Adedokun, 2017).
3.8 RESEARCH INSTRUMENT

44
Questionnaires were employed as the study tool to collect data from the respondents. A
questionnaire has the advantage of allowing for quantitative analysis as well as ensuring that
all respondents are asked the same set of questions. The questionnaire was administered to
the staff of the Industrial Metallizing and Packaging Company (IMPCO). The questionnaire
was divided into five sections as follows;
Section A: Demographic Information
Section B: Questions/Statements on the Usage of Accounting Information Systems for
planning and decision making.
Section C: Questions/Statements on the benefits of Using Accounting Information Systems as
a planning tool
Section D: Questions/Statements on the role of Using Accounting Information Systems as a
decision-making tool
Section E. Questions/Statements on the challenges of Using Accounting Information Systems
as a planning and decision-making tool.
The Questions/Statements from sections B to E were on a 5-point Likert Scale as follows; 5 =
Strongly Agree; 4 =Agree; 3 =Undecided; 2 = Disagree and 1 = Strongly Disagree.
3.9 INSTRUMENT VALIDATION AND RELIABILITY

Validity is the extent to which a research instrument measures what it is supposed to measure.
On that note, the researcher used content validity by giving the drafted copy to the supervisor
for validation of the statements contained therein. After much scrutinization and corrections,
all the observations were taken into consideration in the final copy of the questionnaire before
administering it. Thus, the research instrument sought its purpose in the current study. On the
other hand, reliability is the degree to which a test consistently measures whatever it
measures. Thereby, the researcher used Cronbach’s alpha test to ensure that each construct of
the research instrument is reliable and consistent.
3.10 METHOD OF DATA ANALYSIS

Data analysis is the process of examining, purifying, modifying, and modeling data to find
relevant information, generate judgments, and support decision-making. Data analysis is a
broad term that encompasses a wide range of techniques and approaches. Descriptive
statistics (Table, frequency, Table) were used to assess the demographic data, and Mean Item
Scores (MIS) were adopted to assess the accounting information system as a planning and
45
decision-making tool using Industrial Metallizing and Packaging company (IMPCO) Lagos
state.
In addition, inferential statistics (Simple Linear Regression and Chi-square test statistics)
were used to test the research hypotheses. While Simple Linear Regression was used to test
the research hypotheses one to three, Chi-square test statistic was used to test the fourth
research hypothesis. The value of the Chi-square using the formula:
Chi-square Formula
x2 = ∑ (Oi – Ei)2
Ei
Where:
x2 = Chi-square
Oi = Observed value
Ei = Expected value
∑= Summation
3.11 MODEL DESCRIPTION AND JUSTIFICATIONS
The model specification is the first and most critical stage of data analysis. However,
specification refers to the determination of which independent variables should be included in
or excluded from a regression equation. Based on the stated research objectives in this study,
four models were formulated for the analysis. Econometrically, the estimated equations are
written as follows;
Model 1: PDM = α 0 + β 1 AIS+ μ i (1)
Model one was specified to Examine the extent to which accounting information systems
(AIS) are been used as planning and decision-making (PDM) tools at Industrial Metallizing
and Packaging company.
Model 2: PT = α 0 + β 1 AIS+ μ i (2)

46
Model two was specified to Identify the benefits of using an accounting information system
as a planning tool at an Industrial Metallizing and Packaging company.
Model 3: DM = α 0 + β 1 AIS+ μ i (3)
Model three was specified to Evaluate the benefits of using an accounting information system
as a decision-making tool at an Industrial Metallizing and Packaging company.
Model 4: AIS = α 0 + β 1 CL+ μ i (4)
Model four was specified to Investigate the challenges of using accounting information
systems as a planning and decision-making tool at an Industrial Metallizing and Packaging
company.
3.12 LIMITATION OF THE METHODOLOGY
The term "study limitation" in the context of research refers to flaws in a research design and
methodology that could have an impact on the findings and conclusion of the study.
Researchers owe it to the academic community to disclose any limitations of a study they
have conducted. With the objective in mind, the study was limited in scope as only one
company's (IMPCO) activities in terms of AIS were examined. With that, the findings of the
study might not be generalized to the industry.
3.13 Ethical Considerations
An ethical issue is compliance with accepted professional practices as well as research.
Informed consent was considered in the study as the respondents were informed about the
purpose of the study before administering the research instrument (research questionnaire).
The participants were also informed about the right to decline at will. In addition, the
confidentiality of the information was guaranteed.

47
REFERENCES
Adedokun, M. A. (2017). Business Research Methods. Lantern Books, Ibadan, Nigeria
Vaus, D.A. (2011). Research design in Social Research. 10.1016/S0020-7489(01)00040-2.

48
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
This chapter focused on data analysis and presentation of results. It hereby contains three
sections, where section one deals with the demographic information of the respondents.
Section two presents the research hypotheses testing and the last section presents the
discussion of findings.
4.2 PRESENTATION OF DATA
In this section, the response rate of the questionnaire and the demographic characteristics of
the respondents were analyzed with descriptive statistics (frequency, percentages) as
contained therein;
4.2.1 RESPONSE RATE

49
Table 1 shows the Questionnaire distributed and retrieved for the data analysis. Out of the
238 questionnaires administered to the management and employees of the Industrial
Metallizing and Packaging Company (IMPCO), Lagos state, 180, questionnaires were
retrieved. The response rate is derived by dividing realized sample size by the number of
questionnaires handed out. The response rate becomes 76% (180/238 * 100 = 76%). The data
analysis for this study was based on the retrieved questionnaires (180). The response rate
obtained was appropriate given the recommendation by Mugenda and Mugenda (2012) that a
50% response rate is adequate for analysis; 60% is generally good and a rate above 70% is
excellent. Table 4.1 shows the response rate;
Table 4.1: Questionnaire Distribution and Retrieval
Questionnaire Frequency (f) Percentage (%)
Retrieved 180 76
Un-retrieved 58 24
Total 238 100
Source: Field survey (2023)
4.2.2 PRESENTATION OF DEMOGRAPHIC DATA

This section of the chapter presented the background information of the respondents who
participated in the study. The essence of the information was to know the characteristics of
respondents who participated in the study. In addition, the characteristics also help in
determining the eligibility of the respondents in participating in the study. Given the scope of
the current study, the gender, age, level of education, occupational position, level of staff, and
years of service of the respondents were considered and the analysis is contained therein.
The gender distribution as indicated in Table 4.2 revealed that 59% of the respondents were
male and 41% of them were female. With that, there are more males in the company, and the
proportion informed that both genders are adequately represented in the company. Another
demographic characteristic in the study was age and the distribution indicated that 07% of the
respondents were within the age group less than 20; 23% of them are in the age group 21-30
years. Further, 36% of them are in the age group 31 - 40years; 11% of them are in the age
group 41 -50years; 13% of them are in the age group 51 -60years, and 10% of them are in the
age group above 60 years. On average, the majority of the respondents are within the age
group of 31 to 40 years.
Further, the level of education distribution indicated that 10% of the respondents had SSCE,
and 17% of them had OND/NCE. While 28% of them had BSC/BED, 15% of them had
50
MSC. Also, 18% of them had a professional certificate and 12% of them had other certificate.
By implication, all the respondents had formal education.
In addition, the level of staff distribution revealed that 21% of the respondents are
management staff and 79% of them are non-management staff. The findings indicated that
the two categories of staff adequately participated in the study. Lastly, the years of service
distribution revealed that the company had employed 8% of the respondents for the period
below 5 years; 21% of them had been employed for 6 -10 years; 34% of employed for 11 –
15 years. While 23% of them had been in the company for 16 -20 years, 14% of them had
been in the company above 20 years. On aggregate, 34% of them had been in the company
for 11 -15 years.
Table 4.2 Demographic Distribution of the Respondents
Demographic Classification Frequency Percentage
Gender Male 106 59

Female 74 41
Total 180 100
Age Less than 20 12 07
21 – 30years 41 23
31 -40years 65 36
41 -50years 20 11
51 -60years 24 13
Above 50years 18 10
Total 180 100
Level of Education SSSC 18 10
OND/NCE 31 17
BSC/BED 50 28
MSC 27 15
Professional Certificate 33 18
Other Certificate 21 12
Total 180 100
Level of Staff Management Staff 38 21
Non-Management Staff 142 79
Total 180 100
51
Years of Service Below 5 years 15 08

6 -10years 37 21
11 – 15years 61 34
16 -20years 42 23
Above 20years 25 14
Total 180 100
Source: Field Survey (2023)
4.3 ANALYSIS ACCORDING TO THE RESEARCH OBJECTIVES

This section presents the analysis according to the research objectives stated in Chapter One
of the study. Four research objectives accompanied the related research questions. The study
adopted mean item scores (MIS) data analysis techniques to analyze the corresponding
information on the research objectives.
4.3.1 ACCOUNTING INFORMATION SYSTEMS AS A PLANNING AND

DECISION-MAKING TOOLS
The first research objective was to examine the extent to which accounting information
systems are been used as planning and decision-making tools at Industrial Metallizing and
Packaging companies. MIS was adopted to analyze the information collected as shown in
Table 4.3
Table 4.3 MIS for Usage of AIS as a Planning and Decision-Making Tool
Usage of AIS as a Planning and Decision-Making tool Standard
N Mean Deviation
AIS is moderately used as a planning tool mostly 180 3.67 1.41
AIS is used as a decision-making and investment tool 180 4.07 1.23
The effectiveness of AIS not only depends on the purposes of
such systems but also depends on the contingency factors of 180 3.74 1.22
each organization
AIS is mostly considered an essential organizational
mechanism that is necessary for effectiveness in decision 180 3.78 1.28
management and control in the organization
The usage of AIS depends on the perception of the quality of 180 3.45 1.31
52
information by the users to a greater extent

Grand Mean 3.74 1.29
Source: SPSS Output (Version 23)
Decision Rule: If mean 0.01 – 1.00 (strongly disagree); 1.01 – 2.00 (Disagree), 2.01 - 3.00
(Undecided), 3.01 - 4.00 (Agree), and 4.01 -5.00 (Strongly Agree).
Table 4.3.1 revealed the descriptive analysis of the respondents' opinions on the statements to
ascertain the extent to which accounting information systems are been used as planning and
decision-making tools at Industrial Metallizing and Packaging company. The statements on
the questions have a grand mean value of 3.74 with a corresponding standard of 1.29. Since
the mean value falls within 3.01 - 4.00, it implies that the respondents agreed that accounting
information systems are been used as planning and decision-making tools at Industrial
Metallizing and Packaging Company.
4.3.2 BENEFITS OF USING AN ACCOUNTING INFORMATION SYSTEM AS A

PLANNING TOOL
The second objective of the study was to ascertain the benefits of using an accounting
information system as a planning tool at an Industrial Metallizing and Packaging company.
MIS was used to analyze the respondent's opinion as shown in Table 4.4
Table 4.4 MIS for the Benefits of AIS as a Planning Tool

Benefits of AIS as a Planning Tool N Mean Std. Dev
AIS aids adequate planning resources in IMPCO 180 3.73 1.47
AIS is effective in IMPCO planning 180 3.36 1.50
AIS is used in investment planning in the organization 180 2.68 1.75
The information from the AIS enhances planning in the 180 3.91 1.70
organization
AIS Provide Information about the human resources cycle in 180 3.87 1..56
planning for cost management and producing pricing

Source: SPSS Output (Version 23).
53
Table 4.4 contains the descriptive statistics to ascertain the benefits of using an accounting
information system as a planning tool at an Industrial Metallizing and Packaging company.
With the grand mean value of 3.51 and the standard deviation of 1.59, the findings revealed
that the accounting information system is of benefit to the company in focus as a planning
tool.
4.3.3 ROLE OF USING AN ACCOUNTING INFORMATION SYSTEM AS A

DECISION-MAKING TOOL
The third research objective of the study was to evaluate the role of using an accounting
Information system as a decision-making tool at an Industrial Metallizing and Packaging
Company. The information collected was analyzed and the findings are shown in Table 4.5
Table 4.5 MIS for the role of using AIS as a Decision-making tool
Role of AIS as a Decision-making Tool N Mean Std. Dev
AIS is effective in decision-making in manufacturing 180 4.18 0.94
sector organization
AIS reports relevant financial information regarding the 180 4.37 0.47
economic activities of an organization or unit
Manufacturing industries find it difficult to survive 180 3.52 1.16
without the use of AIS
The application of decision-making on matters that relate 180 3.24 1.07

to an organization is made easy by its AIS
AIS is effective in the manufacturing industry's decision 180 3.85 0.99
making
Source: SPSS Output (Version 23).
As indicated in Table 4.5, the MIS contained the respondent’s opinions on the role of using
an accounting information system as a decision-making tool at an Industrial Metallizing and
Packaging company. The grand mean value of 3.83 with a corresponding standard deviation
of 0.93 revealed that the respondents agreed that using an accounting information system as a
decision-making tool is of benefit to the Industrial Metallizing and Packaging Company.
4.3.4 CHALLENGES OF USING AIS AS A PLANNING AND DECISION-MAKING

TOOL
54
The fourth research objective of the study was to investigate the challenges of using
accounting
information systems as a planning and decision-making tool at an Industrial Metallizing and
Packaging company. Thereby, MIS was used and the findings are shown in Table 4.6
Table 4.6 MIS for the Challenges of Using AIS as a Planning and decision-making tool
Challenges of using AIS N Mean Ranking

Costs of the application of accounting information
systems are relatively high 180 4.52 1st
Senior management is not convinced by the

methods of accounting information system 180 3.96 4th
No competition urges the application of

accounting information system 180 4.21 2nd
The software required by the application of the

accounting system is not that available 180 3.20 5th
The information system is not developed enough

for the optimal application of the accounting 180 4.07 3rd
system
Source: SPSS Output (Version 23)
The descriptive statistics in Table 4.6 depict the mean values of the respondents' opinions and
rankings on the challenges of using accounting information systems as a planning and
decision-making tool at an Industrial Metallizing and Packaging company. The mean value of
4.52 indicated that the respondents strongly agreed that "Costs of the application of
accounting information systems are relatively high” is the first challenge of using AIS.
Further, the mean value of 4.21 revealed that the respondents agree with the statement that "
No competition urges the application of accounting information system " is the second
challenge of using AIS as a planning and decision-making tool at an Industrial Metallizing
and Packaging company. Furthermore, the mean value of 4.07 depicted that the respondents
55
strongly agreed that the third challenge is that the information system is not developed
enough for the optimal application of the accounting system. From the findings, shreds of
evidence revealed that the respondents agreed that there are challenges in using accounting
information systems as a planning and decision-making tool at an Industrial Metallizing and
Packaging Company.
4.4 Analysis of Research Hypotheses
This section of the chapter presented the analysis of the research hypothesis using Simple
Linear Regression (SLR) and Chi-square test statistics. While the SLR was used to test the
research hypotheses 1 to 3, the Chi-square test was used to test hypothesis four (4) as detailed
below;
4.4.1 Regression Output for Research Hypothesis I
Hypothesis I
H0: Accounting information system has not been used to a greater extent as a planning
and decision-making tool at Industrial Metallizing and Packaging Company
H1: Accounting information system has been used to a greater extent as planning and
decision-making tools at Industrial Metallizing and Packaging Company.
Table 4.7 Regression Outputs for Hypothesis I
Parameters Values of the Parameters
β1 .056
2
R .879
t – test 24.638
t (P-value) .000
F –test 607.038
F (P-value) .000
56
Source: Adapted from Regression Output I (Appendix I)
Interpretation of Results
Table 4.7 shows the regression output for model one and from the output, the Beta value ( β 1)
of the independent variable (Accounting information systems) is positive with a value of .056
with a corresponding P-value of .0000, which is less than a 5% level of significance. By
implication, this implies that an increase in the adoption and usage of AIS enhances effective
planning and decision-making in IMPCO.
The R-square ( R2) value of .879 implies that 87.9% of the variation in planning and decision
at IMPCO Ltd was explained by accounting information systems and the remaining 12.1 %
variation can be attributed to other factors not considered in the model.
In addition, the overall significance of the model measure by F -test is 607.038 with a
corresponding P-value of .0000. By implication, the model is statistically significant and
different from zero. Thereby, the model is fit and the result can be relied upon.
Decision:
From the above ( β 1 = .056; R2 = .879; t -value = 24.638; F = 607.038; .000), the null
hypothesis
that accounting information system has not been used to a greater extent as a planning and
decision-making tool at Industrial Metallizing and Packaging Company could not be accepted
at 5% level of significance. Thereby, by rejecting the null hypothesis and accepting the
alternative hypothesis, it can be inferred that accounting information system has been used to
a greater extent as a planning and decision-making tool at Industrial Metallizing and
Packaging
Company.
4.4.2 Regression Output for Research Hypothesis II

57
Hypothesis II
H0: Accounting information system has no significant benefits as a planning tool at an
Industrial Metallizing and Packaging Company
H1: Accounting information system has significant benefits as a planning tool at an
Table 4.8 Regression Outputs for Hypothesis II
β1 .024
2
R .541
t – test 8.583
t (P-value) .000
F –test 73.663
F (P-value) .000
Source: Adapted from Regression Output I (Appendix II)
Table 4.8 shows the regression output for model two, where planning tool is the dependent
variable and accounting information system (AIS) is the independent variable. From the
output, the Beta value of AIS is .024, which is positive and t -value of 8.583 with a
corresponding P-value of 0.0000 (< 5% level of significance). By implication, the result
indicates that a unit increase in the use of AIS will enhances its usage as a planning tool in
IMPCO. This informed that AIS can be used as a planning tool in IMPCO.
58
The R-square ( R2) value of .541 implies that 54.1% of the variation in the dependent variable
(Planning) at IMPCO Ltd was explained by accounting information system and the remaining
45.9 % variation can be attributed to other factors outside the model.
Also, the overall significance of the model measure by F -test is 73.663 with a corresponding
P-value of .0000. This revealed that the model is statistically significant and different from
zero and the model is fit.
Decision:
From the above result ( β 1 = .024; R2 = .541; t -value = 8.583; F =73.663; P-value = .000),
the null hypothesis that accounting information system has no significant benefits as a
planning tool at an Industrial Metallizing and Packaging company cannot be accepted. By
rejecting the null hypothesis and accepting the alternative hypothesis, it can be concluded that
accounting information systems has a significant benefit as a planning tool at an Industrial
Metallizing and Packaging company at 5% level of significance.
4.4.3 Regression Output for Research Hypothesis III
Hypothesis III
H0: Accounting information system do not have a significant role in decision-making at
an Industrial Metallizing and Packaging Company
H1: Accounting information system have a significant role in decision-making at an
Table 4.9 Regression Outputs for Hypothesis III

59
β1 .045
2
R .941
t – test 37.223
t (P-value) .000
F –test 1385.527
F (P-value) .000
Source: Adapted from Regression Output I (Appendix III)
Table 4.9 indicates the regression output for model three, where decision making is the
dependent variable and accounting information system (AIS) is the independent variable.
From the output, the Beta value of AIS is .045, which is positive and t -value of 37.223 with a
corresponding P-value of 0.0000 (< 5% level of significance). By implication, the result
indicates that a unit increase in the use of AIS will enhances decision making at IMPCO.
Further, the R-square ( R2) value of .941 implies that 94% of the variation in the dependent
variable (decision making) at IMPCO Ltd was explained by accounting information systems
and the remaining 6 % variation can be attributed to other factors outside the model.
The overall significance of the model measure by F -test is 1385.527 with a corresponding P-
value of .0000. This indicated that the model is statistically significant and different from
zero. With that the model is fit and reliable.
Decision:
From the above result ( β 1 =. .045; R2 = .941; t -value = 37.223; F = 1385.527; P-value
= .000), the null hypothesis that accounting information system do not have a significant role
in decision-making at an Industrial Metallizing and Packaging company was rejected since

60
the P-value < 5% level of significance. By rejecting the null hypothesis and accepting the
alternative hypothesis, it can be concluded that accounting information systems have a
significant role in decision-making at an Industrial Metallizing and Packaging company.
4.4.4 Regression Output for Research Hypothesis IV
Hypothesis IV
company
H1: There are major challenges in using accounting information system as a planning and
Table 4.10 Chi-Square Outputs for Hypothesis IV
Chi-Square Tests
Asymptotic
Significance (2-
Value Df sided)
Pearson Chi-Square 720.000a 16 .000

Likelihood Ratio 513.520 16 .000
Linear-by-Linear Association 174.575 1 .000
N of Valid Cases 180
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 24.56.
Table 4.10 depicts the Chi-square output for the research hypothesis IV, which tested whether
there are major challenges in using an accounting information system as a planning and
decision-making tool at an Industrial Metallizing and Packaging company. From the output
the Pearson Chi-square has a value of (16) = 720.000. P < 0.05. This informed that the null
61
hypothesis that there are no major challenges in using an accounting information system as a
planning and decision-making tool at an Industrial Metallizing and Packaging company
cannot be accepted. Thus, rejecting the null hypothesis in favour of the alternative hypothesis
implies that there are major challenges in using an accounting information system as a
4.5 DISCUSSION OF FINDINGS

This section of the data analysis presents the discussion of findings to align the findings of
the study with the previous findings and establish whether the current findings support or
refute the previous findings. First, the study established that accounting information systems
are been used as planning and decision-making tools at Industrial Metallizing and Packaging
companies. The finding is consistent with previous studies conducted by Hla and Teru
(2015), who established that accounting information systems are crucial to both businesses
and organizations because they aid in management decision-making, internal controls,
financial report quality, and company transactions. In addition, Rizza, et.al. (2017) in their
study revealed that an accounting information system is a sensemaking tool in the decision-
making processes of small firms.
Second, the current study indicated that an accounting information system is of benefit to the
IMPCO in focus as a planning tool. The finding upholds the previous study by Tinuola, et.al.
(2019) who established that accounting information systems are an important mechanism for
organizations' effective management, decision-making, and controlling activities.
Third, the study indicated that an accounting information system as a decision-making tool is
of benefit to the Industrial Metallizing and Packaging Company. The finding supports the
previous findings by Alnajjar (2017). The scholar indicated that a decision support system
has a practical effect as well as brings long-term benefits for organizations, enterprises in
general, and managers in particular.
Lastly, the study revealed that there are challenges in using accounting information systems
as a planning and decision-making tool at an Industrial Metallizing and Packaging company.
The finding was in line with the previous study by Kyeremeh, et.al. (2022) who revealed that
challenges are associated with the use of accounting information systems.
62
REFERENCES
Alnajjar, M. (2017). Impact of Accounting Information System on Organizational
Performance: A Study of SMEs in the UAE. DOI: 10.2110/graf.2017.09.82.02
Global Review of Accounting and Finance Vol. 8. No. 2. Issue. 20 – 38
measure. International Journal of Multidisciplinary and Current Research, 3, 976-
984

Organizational Decision Making: Evidence from Banking Sector in Ghana. Vol.2
NO.3 (2022): Journal of Accounting and Taxation.
248-262.
Tinuola, Aderemi & Ranti. (2019). Impact of Accounting Information Systems on

organizational Effectiveness of Automobile Companies in Nigeria. GSJ: Vol (7) (8)
Online: ISSN 2320-9186 www.globalscientificjournal.com
63
CHAPTER FIVE
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 INTRODUCTION
The chapter presents the summary, conclusion, and recommendations of the study. Thereby,
it consists of three sections respectively as explained below;
5.2 SUMMARY
This section presents the summary of the study as it covers the whole chapter of the project
from chapter one to chapter four. Chapter one of the study was the title introduction and it
includes; the background to the study, a statement of the problems, objectives of the study,
research questions, research hypotheses, scope of the study, the significance of the study, and
definition of terms.
Chapter two covers the literature review, which was divided into three sections, namely,
conceptual clarifications, theoretical framework, and empirical review. While conceptual
clarifications, review of the constructs of the study; theoretical framework review, and
presents the relevant theories. Further, the empirical review presents the previous studies
from other countries and Nigeria. The last section of the chapter presented the summary of
the literature review and knowledge gap(s).
Chapter three covers the methodology where the methods adopted in the study were
explained and adopted in line with the objectives of the study. It contains the research design,
the population of the study, sample size and sampling techniques, the method of data
collection, research instrument, data analysis techniques, and proposed research objectives
and analysis techniques.
Chapter four was titled “data presentation and analysis” and it detailed the presentation,
analysis, and discussion of findings. Chapter five which is the last chapter presents the
summary, conclusion, and recommendations of the study.
5.3 CONCLUSION
As stated earlier, the study assessed the Accounting information system as a planning and
decision-making tool using Industrial Metallizing and Packaging Company as a case study.
Specifically, the study examined the extent to which accounting information systems are been
64
used as planning and decision-making tools; looked at the benefits of using an accounting
information system as a planning tool; evaluated the benefits of using an accounting
information system as a decision-making tool at an Industrial Metallizing and Packaging
company; and Investigate the challenges of using accounting information systems as a
Using MIS and the study concludes as follows:
First, the study concluded that accounting information systems are been used as planning and
decision-making tools at Industrial Metallizing and Packaging companies. This further
informed that the company had moved with the trends of technology to enhance their
decision and planning processes.
Second, the current study indicated that an accounting information system is of benefit to the
company in focus as a planning tool. AIS is of benefits to the company in terms of adequate
planning resources; investment planning in the organization and providing information about
the human resources cycle in planning for cost management and producing pricing.
Third, the study indicated that an accounting information system as a decision-making tool is
of benefit to the Industrial Metallizing and Packaging Company. As a decision-making tool,
automating and streamlining reporting; is effective in decision-making in the manufacturing
sector organization and economic activities of an organization or unit.
Lastly, the study revealed that there are challenges in using accounting information systems
as a planning and decision-making tool at an Industrial Metallizing and Packaging company.
The main challenges are; the costs of the application of accounting information systems are
relatively high; No competition urges the application of accounting information systems and
the information system is not developed enough for the optimal application of the accounting
system.
5.3 RECOMMENDATIONS
Based on the findings and conclusion of the study, the following recommendations are
suggested for the management of the company.
i. Arising from the fact that accounting information systems are been used as planning
and decision-making tools; it is recommended that the management of IMPCO should
intensify the use of AIS to further enhance their planning and decision towards the
performance of their company.
ii. Reliant on the fact that the accounting information system is of benefit to the
company in focus as a planning tool, it is recommended that the management and
65
staff of IMPCO should embrace AIS at all levels as a planning tool. With that, there
will be no hitches in the planning procedures.
iii. Premised on the conclusion that an accounting information system as a decision-
making tool is of benefit the Industrial Metallizing and Packaging Company, the
management should continue using the platform to adequately make decisions.
iv. Lastly, according to the conclusion that there are challenges in using accounting
information systems, the management should identify the challenges and then turn
them into milestones to make viable decisions.
5.4 AREA OF FURTHER RESEARCH
The current study findings were limited in content scope by focusing only one organization
(IMPCO) and its findings might not be generalized. Based on the aforementioned rhetoric, it
is suggested that the future study should expand the content scope of the same study by
considering two or more companies in the industrial sector in Nigeria.
66
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72
APPENDIX I: QUESTIONNAIRE
SECTION A: DEMOGRAPHIC INFORMATION
Instruction: Kindly Tick (√) the relevant option as appropriate.
1. What is your Gender?
Male ( )
Female ( )
2. What is your age group?
Less than 20years ( )
21 – 30years ( )
31 - 40years ( )
41 50 years ( )
51 – 60years ( )
Above 60years ( )
3. What is your level of Education?
Senior Secondary School Certificate ( )
OND/NCE ( )
BSc/Bed ( )
MSc ( )
Professional Certificate ( )
Other Certificates (Kindly Specify)
______________________________________
4. What is your Occupational Position in the company?

73
Finance officer ( )
Auditing ( )
Plant manager ( )
Human Resources Manager ( )
Procurement officer ( )
Operators ( )
5. Indicate your level of staff.
Management Staff ( )
Non-management staff ( )
6. What is the year of service in the organization?
Below 5 years ( )
6 - 10years ( )
11 -15years ( )
16 – 20years ( )
Above 20 years ( )
Section B: Questions/Statements on the Usage of AIS for planning and decision making.
This section contains questions on the extent to which accounting information systems are
been used as planning and decision-making tools at Industrial Metallizing and Packaging
company. Kindly answer the questions therein.
7. Are you aware of Accounting Information System (AIS)?
Am aware ( )
Am not aware ( )
8. Does your organization adopt the accounting information system as a planning tool?
Yes ( )
No ( )
74
9. Does your organization adopt the accounting information system as a decision-making
tool?
Yes ( )
No ( )
10. To what extent do your organization use an accounting information system as a planning
and decision n-making tool in your organization?
Sn Usage of AIS as a Planning and Decision-Making SA A UN D SD
tool
I AIS is moderately used as a planning tool mostly
II AIS is used as a decision-making and investment tool
III The effectiveness of AIS not only depends on the
purposes of such systems but also depends on the
contingency factors of each organization
IV AIS is mostly considered an essential organizational
mechanism that is necessary for effectiveness in
decision management and control in the organization
V The usage of AIS depends on the perception of the
quality of information by the users to a greater extent
Section C: Questions/Statements on the significant benefits of Using AIS as a planning
tool
This section presents questions on the significant benefits of using an accounting information
system as a planning tool in your organization. The option here is on a 5-point Likert Scale as
follows; 5 – Strongly Agree; 4 – Agree; 3 = Undecided; 2 = Disagree and 1 = Strongly
Disagree. Kindly answer the questions therein.

75
11. What are the significant benefits of using an accounting information system as a planning
tool in your organization?
Sn Benefits of AIS as a Planning Tool SA A UN D SD
I AIS aids adequate planning resources in
IMPCO
II AIS is effective in IMPCO planning
III AIS is used in investment planning in the
organization
IV The information from the AIS enhances
planning in the organization
V AIS Provide Information about the human
resources cycle in planning for cost
management and producing pricing
Section D: Questions/Statements on the roles of using AIS as a decision-making tool
This section provides questions on the role of accounting information systems as a decision-
making tool at an Industrial Metallizing and Packaging company. Kindly answer the
questions.
12. What are the roles of using an accounting information system as a planning tool in your
organization?
Sn Role of AIS as a decision-making Tool SA A UN D SD
I AIS is effective in decision-making in
manufacturing sector organization
II AIS reports relevant financial
information regarding the economic

76
activities of an organization or unit
III Manufacturing industries find it difficult
to survive without the use of AIS
IV The application of decision-making on
matters that relate to an organization is
made easy by its AIS
V AIS is effective in the manufacturing
industry's decision making
Section E. Questions/Statements on the challenges of Using AIS as a planning and
decision-making tool.
The questions therein probe the challenges of using accounting information systems as a
Kindly answer the questions.
13. What are the challenges of using an accounting information system as a planning tool in
your organization?
Sn Challenges of using AIS SA A UN D SD
I Costs of the application of accounting
information systems are relatively high
II Senior management is not convinced by
the methods of accounting information
system
III No competition urges the application of
accounting information system
IV The software required by the application

77
of the accounting system is not that
available
V The information system is not developed
enough for the optimal application of the
accounting system
Thanks in anticipation.
APPENDIX I:
REGRESSION OUTPUTS FOR HYPOTHESIS ONE
NEW FILE.
DATASET NAME DataSet1 WINDOW=FRONT.
WEIGHT BY Planning_Decision_Making.
WEIGHT BY Accounting_Information_System.
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT Planning_Decision_Making
/METHOD=ENTER Accounting_Information_System.
Regression
Notes
Output Created 25-JUN-2023 14:28:55

Comments
Input Active Dataset DataSet1
Filter <none>
Weight Accounting_Information_System
Split File <none>
N of Rows in Working Data File 5
Missing Value Handling Definition of Missing User-defined missing values are treated as
missing.
Cases Used Statistics are based on cases with no missing
values for any variable used.
78
Syntax REGRESSION
/MISSING LISTWISE
/NOORIGIN
/DEPENDENT Planning_Decision_Making
/METHOD=ENTER
Accounting_Information_System.
Resources Processor Time 00:00:00.02
Elapsed Time 00:00:00.04
Memory Required 1420 bytes
Additional Memory Required for

0 bytes
Residual Plots
[DataSet1]
Variables Entered/Removeda
Variables
Model Variables Entered Removed Method
1 Accounting_Inform
. Enter
ation_Systemb
a. Dependent Variable: Planning_Decision_Making

b. All requested variables entered.
Model Summary
Std. Error of the

Model R R Square Adjusted R Square Estimate
a
1 .879 .773 .772 .704
a. Predictors: (Constant), Accounting_Information_System
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 301.103 1 301.103 607.038 .000b
Residual 88.291 178 .496
Total 389.394 179

79

b. Predictors: (Constant), Accounting_Information_System
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .789 .129 6.092 .000
Accounting_Information_Sys
.056 .002 .879 24.638 .000
tem
APPENDIX II:
REGRESSION OUTPUTS FOR HYPOTHESIS TWO
REGRESSION
/MISSING LISTWISE
/NOORIGIN
/DEPENDENT Planning_Tool
Regression
Notes

Comments
Filter <none>
Weight Accounting_Information_System
Split File <none>
missing.
80
Syntax REGRESSION
/MISSING LISTWISE
/NOORIGIN
/DEPENDENT Planning Tool
/METHOD=ENTER
Accounting_Information_System.

0 bytes
Residual Plots
Variables
1 Accounting_Inform
. Enter
ation_Systemb
a. Dependent Variable: Planning_Tool

Model Summary
Std. Error of the

1 .541a .293 .289 1.021
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 76.780 1 76.780 73.663 .000b
Residual 185.532 178 1.042
Total 262.311 179

81

Coefficientsa
Standardized
1 (Constant) 2.364 .165 14.306 .000
Accounting Information_
.024 .003 .541 8.583 .000
System
APPENDIX III:
REGRESSION OUTPUTS FOR HYPOTHESIS THREE
REGRESSION
/MISSING LISTWISE
/NOORIGIN
/DEPENDENT Decision_Making
Regression
Notes

Comments
Filter <none>
Weight Accounting_Information_Systems
Split File <none>
missing.
82
Syntax REGRESSION
/MISSING LISTWISE
/NOORIGIN
/DEPENDENT Decision_Making
/METHOD=ENTER
Accounting_Information_Systems.

0 bytes
Residual Plots
Variables
1 Accounting_Inform
. Enter
ation_Systemb
a. Dependent Variable: Decision_Making

Model Summary
Std. Error of the

1 .941a .886 .886 .416
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 239.262 1 239.262 1385.527 .000b
Residual 30.738 178 .173
Total 270.000 179

83
Coefficientsa
Standardized
1 (Constant) 1.354 .078 17.463 .000
Accounting_Information_System .045 .001 .941 37.223 .000
APPENDIX IV:
CHI-SQUARE OUTPUTS FOR HYPOTHESIS FOUR
Chi-Square Tests
Asymptotic
Significance (2-
Value Df sided)
Pearson Chi-Square 720.000a 16 .000

Likelihood Ratio 513.520 16 .000
Linear-by-Linear Association 174.575 1 .000
N of Valid Cases 180
a. 0 cells (0.0%) have expected count less than 5. The minimum

expected count is 24.56.

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1

ACCOUNTING INFORMATION SYSTEM (AIS) AS A PLANNING AND

A PROJECT PRESENTED TO THE DEPARTMENT OF ACCOUNTING AND

supported me throughout the programs and my siblings, Orazimife Stephen Chidi,

Akinrinola, for his words of encouragement, patience, suggestions, helpful information,

made it possible for me to have completed the work.

CHAPTER ONE: INTRODUCTION

CHAPTER TWO: LITERATURE REVIEW

2.4.1 CONTINGENCY THEORY 27

CHAPTER THREE: METHODOLOGY

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.3 ANALYSIS ACCORDING TO THE RESEARCH OBJECTIVES 50

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

1.1 BACKGROUND OF STUDY

1.2 STATEMENT OF PROBLEM

1.3 OBJECTIVES OF THE STUDY

1.4 RESEARCH QUESTIONS

iii. What is the role of accounting information system as a decision-making tool at an

1.5 RESEARCH HYPOTHESES

1.6 SCOPE OF THE STUDY

accounting information systems is been used in an Industrial Metallizing and Packaging

1.7 SIGNIFICANCE OF THE STUDY

1.8 DEFINITION OF TERMS

Akinlade (2019). The Impact of Accounting Information on Decision Making of Stakeholders

John-Best, N. D. & Rejoice, R. (2020). Impact of Accounting Information Systems on

Kanakriyah, R. (2017). The Impact of Accounting Information Systems on the Banks

Manchilot, T. (2019). A Review on Determinants of Accounting Information System

Ogbededagu, S. C. (2019). Impact of Accounting Information System on the Performance of

Tinuola, A. & Ranti (2019). Impact of Accounting Informations Systems on Organizational

2.2 CONCEPTUAL CLARIFICATIONS

2.2.1 CONCEPT OF INFORMATION

as insider information held by an organization's staff members. In its broadest sense,

2.2.2 CONCEPT OF ACCOUNTING INFORMATION

2.2.3 CONCEPT OF ACCOUNTING INFORMATION SYSTEMS (AIS)

2.2.4 PLANNING AS A CONCEPT

2.2.5 ACCOUNTING INFORMATION AND DECISION-MAKING

consistent with the organization's objectives by reporting and gathering accounting

2.3 RELEVANCE OF ACCOUNTING INFORMATION SYSTEM

2.3.1 ACCOUNTING INFORMATION SYSTEMS AS A PLANNING TOOL

2.3.2 SUBSYSTEMS OF ACCOUNTING INFORMATION SYSTEM

2.4 THEORETICAL REVIEW

2.4.2 RESOURCE-BASED VIEW THEORY

2.4.3 AGENCY THEORY

2.5 THEORETICAL FRAMEWORK

2.5.1 RELEVANCE OF THE THEORY

designing management accounting systems is fundamentally influenced by environmental

2.6 EMPIRICAL REVIEW

2.6.1 PREVIOUS STUDIES FROM OTHER COUNTRIES

of accounting information systems on performance measures using secondary data. It was

information system towards increasing effectiveness in public enterprises, respectively

Ahmed, A.I (2017). The impact of computerized accounting information system on

Akanbi & Aruwaji (2018). Effect of Accounting Information System Adoption on

Holmström, J. Koli, T (2002): Making the Concept of Information Operational. Department

Jamie, P. & Michael F. P. (2016). Financial Accounting in an economic context: 10 th Edition.

John-Best, N.D. & Rejoice, R. (2020). Impact of Accounting Information Systems on

Kashif (2018). Effect of Accounting Information System on Financial Performance of

Kyeremeh, K. & Forson (2022). The Role of Accounting Information Systems in

Manchilot (2019). A Review on Determinants of Accounting Information System Adoption.