ASSESSMENT OF THE ROLE OFACCOUNTINGINFORMATION

SYSTEM AND ITS IMPACT ON ADMINISTRATION

A CASE STUDY ON MOHA SOFT DRINK
FACTORY DESSIE PLANT

A Senior Essay Research submitted to Unity University, Rukiya Campus;

Department of Accounting and Finance for the Partial Fulfillment of the
Requirement for the Bachelor of Arts Degree in Accounting and Finance
BY

ADDISU WAKSHUM
ID NO-UU02711/DCS/R/11

ADVISOR
GETNET. M (MBA)
Accounting and Finance Department
RUKIYA, CAMPAUS
Unity University
APRIL 2022
Dessie Ethiopia
 ACKNOWLEDGMENT
First and for most, I would like to express my deepest gratitude to almighty “GOD” who
helped me in the times of ups and downs and to the accomplishment of this paper work. I also
owe my special thanks to my advisor GETNET MOLLA for his professional guidance and
patience. His suggestions, advises and corrections were very useful for this work. Last but not
least, I owe my heartfelt gratitude to my mother for their unlimited support throughout my
life.

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 ABSTRACT
The research would be conducted on the role of Accounting Information System and its
impact on administration in Moha soft drink factory. The objective of the study would be to
assess the role and impact of accounting information system on administration. The need for
information is basic for concrete and explicit management decision to ensure the success and
survival of an organization. The researcher would be using both primary and secondary
source of data in order to gather the required information. Primary data would be collected
through interview and questionnaire to employees. Secondary data would be collected by the
review of the documents and manuals of Moha soft drink factory. These collected data would
be processed, analyzed and interpreted by using qualitative and quantitative data.
Quantitative such as:-tables, percentage and etc. The researcher would be used convenience
sampling technique; by using this technique the researcher would be taken samples of 30
from the total population of the organization. The total populations of the organization are 35
employees. Accounting information system has a vital role in Moha soft drink factory help to
consolidate financial statement, to secure data and helpful for administrative decisions. There
is a knowledge gap on the use of AIS because of delaying in communication and data
redundancy between different levels management. In order to minimize the knowledge gap the
researcher recommends Moha soft drink factory should check the information disperses
among different management levels.

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 ACRONYM
• AIS: - Accounting Information System
. MSD-Moha Soft Drink

iv
 TABLE OF CONTENTS
Content Page
ACKNOWLEDGMENT............................................................................................................ii
ABSTRACT................................................................................................................................iii

ABSTRACT................................................................................................................................iii

ACRONYM...............................................................................................................................iv

TABLE OF CONTENTS............................................................................................................v

LIST OF TABLES....................................................................................................................vii

CHAPTER ONE.........................................................................................................................1

1. INTRODUCTION..................................................................................................................1

1.1. Background of the study..................................................................................................1

1.2. Background of the Organization......................................................................................2

1.3. Statement of the Problem.................................................................................................3

1.4 Research Questions.........................................................................................................3

1.5. Objectives of the Study....................................................................................................4

1.5.1. General Objective..........................................................................................................4

1.5.2. Specific Objectives...............................................................................................................4

1.6. Research Methodology.........................................................................................................4

1.6.1 Research Design.............................................................................................................4

1.6.2. Data source and collection Methods.............................................................................4

1.6.3. Sampling Design...........................................................................................................5

1.6.4. Data analysis Methods..................................................................................................5

1.7. Significance of the Study.................................................................................................5

[Link] of the Study.............................................................................................................6

1.9 Organization of the Paper..................................................................................................6

1.10. Limitations of the Study.................................................................................................6

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CHAPTER TWO........................................................................................................................7

2. LITERATURE REVIEW.......................................................................................................7

2.1 Theoretical Literature........................................................................................................7

2.2 Definitions of accounting information system..................................................................7

2.3. Types of accounting information systems(AIS)...............................................................7

2.4. Function of accounting information system (AIS)...........................................................8

2.5 Basic subsystems in the AIS.............................................................................................8

2.6. Critical success factors for AIS........................................................................................9

2.7. AIS and organization........................................................................................................9

2.8. Accounting Information System and Decisions.............................................................10

[Link] concepts and their effects an AIS..............................................................10

2.10. Empirical Studies.........................................................................................................11

CHAPTER THREE...................................................................................................................13

3. DATA PRESENTAION, ANALYSIS AND INTERPRETATION....................................13

3.1 Introduction.........................................................................................................................13

3.2 Questionnaires analysis...................................................................................................13

3.3 Analysis of Interview......................................................................................................20

CHAPTER FOUR.....................................................................................................................22

4. SUMMARY, CONCLUSION AND RECOMMENDATION.............................................22

4.2conclusion.........................................................................................................................23

4.3 Recommendations...........................................................................................................24

REFERENCES

ANNEX

vi
 LIST OF TABLES
Table.3.1,Eductional Background,working age and employees position information of the
respondents................................................................................................................................13
Table.3. 2 This section present respondent’s attitude towards the awareness of Moha soft
drink factory management about the use and implementation of AIS....................................14
Table. 3.3 This part exhibits respondents’ attitude towards the use of AIS for administrative
decisions....................................................................................................................................15
Table. 3.4 Help fullness of accounting information system for administrative decision..........15
Table. 3.5 effect of AIS on quality of decision.........................................................................16
Table. 3.6 Respondents opinion regarding to contribution of AIS for the organization………..
...................................................................................................................................................16
Table. 3.7 the role of accounting information system in Moha soft drink factory...................17
Table. 3.8 knowledge gap exist b/n different level of management.........................................18
Table. 3.9 strategic position pursuing in Moha soft drink factory...........................................18
Table. 3.10 helpful ness of AIS to achieve strategic position...................................................19
Table. 3.11 Accounting information system problem exist in organization.............................19
Table. 3.12 problem existence..................................................................................................20
Table. 3.13 problem existed in implementing AIS...................................................................20

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 CHAPTER ONE
1. INTRODUCTION
1.1. Background of the study
Accounting information system was the collection of data and processing procedures that
created needed information useful accounting purpose for its users. AIS which was to
communicate relevant information to individuals and organizations, and described the strong
influence of information technology (Bagranoff etal, 2009)
Accounting information system is a system of corrections, storing and processing a financial
accounting data was used by decision maker. System is a set of two or more interrelated
components that interact to achieve a goal. AIS are general computer based method for
tracking accounting activity in conjunction with information technology source. (Romney and
steinbart, 2012)
The benefit of AIS could be specified in increasing customer’s satisfaction, minimize
insufficiency and satisfying timely financial information using computerized system. AIS also
improved the quality and reduced costs of products or services, improved decision making,
internal control structure and shared of knowledge in the organization(Romney
andSteinbart,2012).
The accounting Information System should be the primary information system to provide
users with information they need to perform their jobs. There were so many benefits of
information system: - reduction of uncertainty, improved decisions, and improved ability to
plan and schedule activities (Romney and Steinbart, 2009).
Accounting is the service function that seeks to provide the users with quantitative
information on the other hand, accounting information system is an information system that
was designed to make the accomplishment of accounting function possible. AIS process data
and transactions to provide users with the information they need to plan, control, and operate
their business. So in this research the researcher motivates to investigate the role and impact
of accounting information system on administration in Moha soft drink factory.

1
1.2. Background of the Organization
MOHA soft drinks Industry Dessie Plant is one of the best soft drink companies in
Ethiopia. Moha soft drink sc was established in Emperor Haile Silesia May 4, 1954(GC).In
that time the company has 62 employer and produce 5000 bottle/day and the products are
snagn tonic, snagn orange, snagn cola, Arenchata and skish. The employer salary had been
bellow 50 birr. Moha soft drinks Industry Dessie plant is a member of MIDROC, Ethiopia
technology group companies of engaged in manufacturing and selling of different types of
soft drink in Ethiopia. MIDROC means Mohammed International Development Research
Organization [Link] overall activates of the company are managed administrated by
the SHEIK MOHAMMED HUSSEIN ALI AMOUDIN is the chair person and owner. Ato
GETACHEW BATI is the chief executive officer and ATO TESFAYE MEKONEN is the
general manager. The annual turnover of the company has reached to birr 556,000,000 and
sales stands at an average annual growth rate of 12%. Moha soft drink sc is holds 52%of the
market share in soft drink industry in the country with an expansion and replacement of
absolute machinery production capacity of the plant has increase substantially. In addition, it
is a corporate company, which is located in Amhara National Regional State, South Wollo,
Dessie town and 401 km away from Addis Ababa and with a total land holding area of 37,640
meter square. The company supplies different soft drinks such as Pepsi cola, Miranda orange,
Miranda tonic, Miranda apple, 7-up and carbonated water products to the society. Now a day
the factory is designing to produce 317,160 hectoliter of soft drink per year in both machines
and then Dessie soft drink plant compute with other Moha seven sister plant about concepts
effectively by coordinate management system and technology use to produce maximum
product with high qualities to period the customer demands.
Mission
To satisfy its customer need and expand the market by generating profile all stakeholder and
play vital role in the development of the country economy and concerned on the production of
quality soft drink at reasonable price.
Vision
To ensure competitiveness of the company through sustained innovation of its infrastructure
and work towards it based, well managed and led organization for achieving best quality and
high volume products(from the company profile).

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1.3. Statement of the Problem
The major purpose of this study was assessed the role of accounting information system and
its impact on administration of Moha soft drink factory at Dessie plant. Accounting
information system is the collection, storage, and processing of financial and accounting data
used by internal users to report information to investors, creditors and tax authorities. An
accounting information system is generally a computer based method for tracking accounting
activity in conjunction with information technology resources (Roomney and Steinbart,
2012).
The main purpose of accounting is to provide financial information to be used for decision
making. Business executives &managers need the financial information provided by the
accounting system to help them to plan, control &evaluate business operations. Effective
accounting information system is essential to any organizations long run success.
Accounting information system has the key to facilitate the financial activity. AIS is useful if
it has a potential for making administrative decision otherwise it misleads the users idea and
also it lead them to decide wrong decision and that may be the cause for bankruptcy or loss of
the organization.
Most business organizations have not fully utilized accounting information system on their
administration. So the researchers main concern motivates to study on assess the impact and
the role of accounting information system on administration in Moha soft drink factory.
Therefore, the study of accounting information system and its impact on administration is
highly important for realizing the objective and mission of organization in different sector
1.4 Research Questions
 Do Moha soft drink factory use AIS effectively for administrative decisions?
 What is the role of AIS in Moha soft drink factory on administration?
 Does Moha soft drink factory use AIS effectively to attain its objectives?
 Is a knowledge gap exists on the use of AIS between different levels of management?
 What is the relationship between AIS and quality of administration in Moha soft
drink factory?

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 1.5. Objectives of the Study
1.5.1. General Objective
The general objective of this study would be assessed the role of Accounting Information
System and its impact on administration in the case of Moha soft drink factory.
1.5.2. Specific Objectives
 identify whether Moha soft drink factory is using AIS effectively for
To
administrative decisions.
• To assess the role of AIS in Moha soft drink factory.
• To investigate whether Moha soft drink factory uses Accounting Information System
effectively to attain its objectives
• To identify whether a knowledge gap exists on the uses of Accounting Information
System between different level of management
• To assess the relationship between the role of AIS and quality of administration in
Moha soft drink factory.
1.6. Research Methodology
1.6.1 Research Design
The researcher was used descriptive research design because these types of research design
are used to describe and explain certain facts. A descriptive research determines and reports
the way things are describe as possible behaviors, attitudes, values and characteristics. So,
effective descriptive research design method would be conducted to assess on the role of
Accounting information system and its impact on administration.
1.6.2. Data source and collection Methods
The researcher was conducted to obtain primary data through direct communication with
respondents. The primary data would have been interviews and questionnaires. Secondary
source data have be available in the organization which is related to accounting information
system.
In this study the researcher was used both primary and secondary data types. At the time of
the study the primary data was in questionnaire and interview. Two types of questionnaires
open ended and close ended questions. Interviews was only structured. Most of the
respondents would have been answer the expected questions on the questionnaire and through
interview.

4
The researcher was gathered secondary data from published and unpublished materials that
reported as to assess the role and impact of AIS on the quality of administration in Moha soft
drink factory. And also secondary data was collected from relevant sources such as internet,
magazines and to obtain relevant information related to the study.
1.6.3. Sampling Design
The researcher was used convenience sampling method. Convenience sample is a type of
non- probable sampling because that relies on data collection from population members who
are conveniently available to participate in study based on judgment of the researcher. It is a
simple one where the units that are selected for inclusion in the sample size are the easiest to
access. By using this method the researcher was get information from management and
employees who have known about the role of Accounting Information System and its impact
on administration. The target population of this study was employees of the Moha soft drink
factory such as individuals with their respective profession accountant of different stage,
cashiers; internal auditors and manager’s. We have take Samples of 30, from finance
department 8 and the rest 22 are from human resource department would be selected. The
total populations of the organization are 35 employees.
1.6.4. Data analysis Methods
The researcher was collected all required information; using primary and secondary sources
the researcher was used qualitative and quantitative data. Quantitative data analysis such as: -
tables and percentage method to analyze and interpret the collected data and qualitative use
descriptive data analysis. Descriptive data means finding out the facts by using of the words
like:-how, what, where and etc

1.7. Significance of the Study

The study has been conduct to assess the role and impact of accounting information
system on administration in Moha soft drink factory .The value of study this research would
help Moha soft drink factory understand the weakness and strength of its accounting
information system and its impact on administration. In addition to this the research would
have be contributed to help the organization by increase the awareness of management
information system and technical support for the employees.
Therefore, employees would be also beneficial and it helps the community by providing
accurate and reliable information about the organization.
5
Generally, the significance of this study would not only for the Moha soft drink factory but
also for other organization, community and for other researcher.

[Link] of the Study

The study would be limited to the role of Accounting Information System and its Impact on
Administration of Moha soft drink factory. The organization is located at Buanbuawuha in
Dessie town. Beside this study was not visualize overall impact of AIS on the organizations as
a whole. The studies would assess the area of status of administrative decisions, objectives
and quality of administration. The researcher was assessed from 2021 -2022.

1.9 Organization of the Paper

The study would have four chapters. The first chapter deals with introduction parts such as
background of the study, background of the organization, statement of the problem, research
questions, objective of the study, research methodology, significance of the study, scope of
the study, limitation of the study and organization of the paper, the second chapter would
concerned with literature review. The third chapter deals about with data analysis and
presentation, and the last chapter would be concerned with conclusions and recommendations.

1.10. Limitations of the Study

The success of every study greatly depends on the availability of resource with conductive
environment. The unwillingness of the respondents to give information, Lack of sufficient
written document about accounting information system, and also we are beginner and new to
research so there is knowledge gap while study this research. So this is some of the limiting
factors that faced up while conducting this research.

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 CHAPTER TWO
2. LITERATURE REVIEW

2.1 Theoretical Literature

2.2 Definitions of accounting information system

An Accounting information system is a system that collects, records, stores, and processes
data to produce information for decision makers. Accounting information system that is
transform data into information that management can use to make decisions about events,
resources, and agents. Information is data that have been organized and processed to provide
meaning to a user. Usually, more information and better information translates into better
decisions (Romney and Steinbart, 2009).
Accounting information system is a subsystem that process financial transaction and non
financial transaction that directly affect the processing of financial transactions. Changes to
customer’s names and address are processed by the accounting information system to keep the
customer file current (Hall, 2010)...
AIS is the intelligence that the information providing vehicle of the language of business. The
AIS must collect, enter, process, store, and report data and information. The AIS can and
should be the organizations primary information system and that it provides users with the
information they need to perform their jobs (Romney and Steinbart, 2012).
An information system is used to represent real world phenomena with asset of symbols that
are themselves captured& implemented with a computerized environment. Information
system is a set of people, procedure& resources that collects, transforms and disseminates
information in an organization (O,Brien, 1997).

2.3. Types of accounting information systems(AIS)

There are three categories of AIS:-
• Manual system:-manual AIS are used mostly by very small business and home based
business. If a system is entirely manual it would require the following: source
document, general ledger and etc.
• Legacy system: - is often in existing business firms and was used before information
technology got as sophisticated as it is today. They have some definite advantages to

7
 the organization. They contain valuable historical data about the firm. The firm
personnel tend to know how to use the system and understand it. A legacy system has
usually been customized to the specific need of an individual firm. Unfortunately
legacy systems also have significant disadvantage, often they have no documentation.
it is usually hard to find replacement parts because hardware and software may
become obsolete. Most legacy system has been built from scratch.
• Replacement of legacy system: - you can completely replace your legacy system with
a new, up to date system that is quite an expensive solution; you can also update your
legacy system. You can use a procedure called scream scraping, which is a technique
that takes the data displayed on the computer screen and translates it so anew
application can read it. This type of system networks the different applications in your
legacy system:-such as inventory, payroll and others.
Accounting Information system (AIS) consists of:
People, procedures, data, software, and Information technology infrastructure
2.4. Function of accounting information system (AIS)
 To collect and store data about the organizations business activities and
transactions efficiently and effectively.
 To provide management with information useful for decision making.
 To provide adequate internal controls of the organizations
2.5 Basic subsystems in the AIS
• The revenue cycle- is a set of business activities and related information
processing operations associated with providing goods and services to
customers and collecting cash in payment for these sales. The primary external
exchange of information is with customers. Information about revenue cycle
activities also flows to the other accounting cycles via the centralized data
base.
• The expenditure cycle- is recurring set of business activities and related
information processing operations associated with the purchase and payment
for goods and services. In the expenditure cycle the primary external exchange
of information is with suppliers. The primary objective in the expenditure

8
 cycle is to minimize the total cost acquiring and maintaining inventories,
supplies, and the various services the organization needs to function.
• The human resources management (payroll cycle) -is a recurring set of
business activities and related data processing operations associated with
effectively managing the employee workforce. The more important tasks
include:- recruiting and hiring new employees training job assignment,
compensation (payroll), performance evaluation, discharge of employees.
• The production cycle- is a recurring set of business activities and related
data processing operations associated with the manufacture of products. It
involves activities raw materials and labor in to finished goods.
• The financing cycle- involves activities of obtaining necessary funds to
organization, repay creditors and distribute profits to investors.
2.6. Critical success factors for AIS
The critical factors that make AIS effective and useful are:-
• Effective:-AIS fall in between those factors for the need of the implementation or
generating accurate and timely information.
• Reliability:-as AIS is related to the day to day operation or business they need to be
highly reliable system. Measured in terms of low maintenance, quality of information
and etc.
• Simplicity:-AIS used by a variety of users can be simple and easy.
• Timeliness:-provide information in time to enable decision makers to use it to make
decisions.
• Flexibility:-AIS is now subject to more frequent changes than ever before.
• Completeness:-AIS does not leave out anything that is important (Hall, 1998).
2.7. AIS and organization
Virtually all organizations from business and government agencies to hospital, educational
institution have an Accounting Information System. Among these groups, the AIS of business
organizations tend to be the most highly developed and innovative.
The modern business organization served by the accounting information system is a very
complex institution such an organization may employee thousands of people in tasks ranging
from the development and engineering of new products to the management of a large sales

9
force. The activities of prominent companies are interest to many segments of society
customers, suppliers, employees, lenders, stock holders and the various government under
whose jurisdiction they operate.
How can the modern business organizations plan, coordinate, and control the multitude of
activities that it under takes? How can it supply information to the many people and
institutions that are interested in its activities? The AIS plays a vital role in accomplishing
these tasks. It is use full to examine AIS is from view point of uses who utilize accounting
information as a business for making decisions, there are two basic categories of users: - such
uses are those external to the business organization and those internal, external uses are many
and varied. Their needs are met to some extent by the publication of general purpose financial
statements, such as the income statement and balances sheet (Romney and Steinbart, 2009).
Trade owners usually employee An AIS to make their accounts bundling feasible, rapid and
precise since the system is all about the investigation and evaluation of the records with the
ultimate preparation of statements, it gives less room for errors. Moreover, many AIS have a
built in means of mistakes reduction all the information is complied in an automated way. The
communications are all electronic hence there are minimal instances of mistakes. In addition
to this the process takes less time with your work being more efficient than before.
2.8. Accounting Information System and Decisions
Decision making is defined as a rational choice among alternatives there have to be options to
choose from, if there are not, there are no choice possible and no decision. Decision making is
a process, not a lightning bolt occurrence. In making the decision manager is making a
judgment reaching a conclusion from a list of known alternatives.
A vital role of the AIS is to supply internal decision makers with information that relevant to
their needs. An organization is held together by its information network, the acquisition, use
retention and transmission of information one of the primary network members in an
organization is its AIS. The AIS summarizes and filters the data available to decision makes.
By processing the data, the AIS influence organizational decision (Romney and Steinbart,
2009).
[Link] concepts and their effects an AIS
Accountants must thoroughly understand their organization’s goals in order to make positive
contribution to their accomplishment. A goal basically represents what one is attempting to
achieve. Most people as well as organizations have several goals. Ideally the multiplicity of
10
goals that employees and their organizations have should be in harmony with each other. The
harmony among employee’s goals and organizational goals is called goal congruence.
This means that in the process of achieving personal goals the individual employee also
contributes toward accomplishing organizational goals. On the other hand frustration can
result when the positive achievement of one goal conflicts with other goals, which is called
goal incongruence. This type of frustration occurs in both individuals and organizations
(Romney and Steinbart, 2012).

11
2.10. Empirical Studies
Hunton (2002) study, which investigated the relationship between automated accounting
information system and organizational effectiveness; showed that there was strong
relationship between accounting information system and organizational effectiveness and
decision making, which means access to accounting information will lead to organizational
effectiveness. Several recent studies on value of accounting information for equity valuation,
share price and earnings prediction have queried current financial reporting model in the
developed world. The same issue can be raised in Kenya about the value relevance of
accounting numbers to investors. This assists the researcher to determine whether the result
agrees or digresses from the previous studies. Chenhall (2003) asserted that AIS plays a
proactive role in the strategy management, acting as a mechanism that enables organizational
strategy.
Accounting information systems is an important mechanism of an organization that is vital for
effective management decision-making in controlling organization (Zimmerman, 1995).
Generally, AIS is classified in two categories: a: effective decision-making for information
that is largely for control of organization and b: to facilitate information that is mainly used
for coordination of organization in decision-making are used (Kern, 1992). Effectiveness of
AIS to increase system integration is to improve internal communications throughout the
organization. Top management team with various planning and management information
system influences on strategic performance (Huber, 1990)
Chang states, AIS play a significant role in increasing the effectiveness of organizations in
decision making and in the global competitive environment. Financial statements are still
important source of financial information for external stakeholders. Despite the continuous
advancements and extensive usage, accounting practices have not kept pace with high
technological advancements and rapid economic development, which consistently impact the

significance of accounting information.

12
In a study by researchers (Salem, Ahmed, 2013) about the role of the qualitative
characteristics of accounting information in raising the efficiency of planning and control in
Sudanese financial institutions, the researchers pointed out that the degree of the accounting
information appropriateness affects in a positive way the process of good prediction in the
future, the ability to place an estimated budget to achieve the organizations objectives, and the
ability of establishing regulatory standards to follow the plans drawn. The study, conducted
by researchers (Mousawi, Mohammed, 2009) have pointed out that the information systems
significantly affect managerial, job, financial and marketing performance in insurance

companies in Algeria .

13
 CHAPTER THREE
3. DATA PRESENTAION, ANALYSIS AND
INTERPRETATION
3.1 Introduction
This chapter deals with the brief description and analysis of Moha soft drink factory
accounting information system contribution of role and impact on the administration of the
organization. The analysis based on data collected form documents on Moha soft drink
factory and from primary data collected by questionnaires and interviews with vice finance
manager. Finance department and human resource department whose day to day activities
mainly concerned with accounting information system and use it directly in the management
activity so that conclusion could be drawn based on the findings.
Questionnaires were distribution to (30) employees of Moha soft drink factory who have direct
work relationship with management and finance department and all respondents have
completed and submitted the questionnaires. Thus, the methods used to collect the data have
enabled to get reliable information about the study area.
3.2 Questionnaires analysis
Table.3. 1 Educational Background, working age and employee’s position information of the
respondents
No Question Alternative Response In percent (%)
1 Educational Diploma 3 10
background BA degree 20 66.7
MA/MSC 7 23.33
Other if any - -
TOTAL 30 100
2 How long have you 1-5 13 43.3
been in Moha soft 6-10 12 40
drink factory? 11-20 5 16.7
Above 20 - -
TOTAL 20 100
3 Current position Secretary 5 16.7

14
 Financial 1 3.33
accountant
head
Accountant 7 23.3

Casher 5 16.7
Other 12 40

TOTAL 30 100
Source: Data gathered through questioners, 2022
The educational background distributions of the respondents show that 20(66.7%) of the
respondents have educational qualification of BA degree, 3(10%) of them are diploma and the
rest 7(23.3%) are MA/MSC holders. Most of the employees of Moha soft drink factory are
their educational qualification is bachelor art degree. So they play a great role for successful
implementation of AIS in Moha soft drink factory.
The service year of respondents’ is concerned, 12(40%) of the respondents’ stayed in
organization from 6-10 years, 5(16.7%) of them, are also stayed from 11-20 years and the rest
of the respondents are 13(43.3%) stayed 1-5 within the organization. Most of Moha soft drink
factory employees are stayed above six years and they get experience from the organization.
The positions share by respondents constitutes 6(30%) of accountant, secretary 3(15%),
cashier 5(25%), financial accountant head 1(5%), and other 5(25%). This has an advantage
to study in that it is accountant who involved in the use of accounting information system in
the routine activity of Moha soft drink factory.
Table.3. 2 This section present respondent’s attitude towards the awareness of Moha soft drink
factory management about the use and implementation of AIS
No Question Alternative Response In percent (%)
4 How is the awareness of High awarded 6 20
Moha soft drink factory Awarded 10 33.3
management about the use Less awarded 8 26.7
and implementation of NO opinion 6 20
accounting information TOTAL 30 100
system?

15
Source: primary data from the employee of the organization, 2022
The majority of the respondents’ to the extent to 6(20%) having awarded about accounting
information system in usage and implementation, 10(33.3%) of them have highly awarded,
8(26.7%) are less awarded and the rest 6(20%) of them have no opinion on the awareness of
it. Most of the organization employee’s awarded about accounting information system so it is
easy for the implementation accounting information system and to achieve the organization
objective.
Table.3. 3 This part exhibits respondents’ attitude towards the use of AIS for administrative
decisions
No Question Alternative response In percent (%)
5 Do you believe that Strongly agree 8 26.7
accounting information Agree 18 60
system used by Moha Neutral 4 13.3
soft drink factory is Disagree 0 -
effective for Strongly 0 -
administrative decisions? disagree
TOTAL 30 100
Source: data gathered through questionnaire, 2022
As it can be seen from the table above 18(60%) of respondents were agree on the use of AIS
effective administrative decisions and 8(26.7%) of them strongly agree and 4(13.3%) of them
are neutral, the rest are disagree and strongly disagree .the researchers concluded in the above
table accounting information system used by organization is effective for administrative
decisions.

Table. 3.4 Help fullness of accounting information system for administrative decision
No Question Alternatives response In percent (%)
6 How accounting Very much help full 19 63.3
information system helps to Help full 11 36.7
your business in Not help full 0 -
administrative decisions? No opinion 0 -
TOTAL 30 100
Source: primary data, 2022
16
When we come to the extent of help fullness 19(63.3%) of the respondents replied that
accounting information system is very much helpful for administrative decision to their
business and the 11(36.7%) of them agree on helpfulness slightly, so this shows that
accounting information system have great role in administrative decisions.
Table. 3.5 effect of AIS on quality of decision
NO Question Alternative response Percent
(%)
7 In your opinion, how do Increase the quality 26 86.7
you evaluate the effect Not change its quality 0 -
of AIS on the quality of Decrease the quality 0 -
decision of your Not sure 4 13.3
organization? TOTAL 30 100
Source: data gathered through questionnaire, 2022
The above tables shows that 26(86.7%) them are indicate increasing the quality and
4(13.3%) them are indicates not sure, the rest decrease the quality and not change its quality
are 0%. As the annual report indicate, Moha soft drink factory profit is increasing from the
start of its establishment, the probably results from effective administrative decisions using
of accounting information system. This indicate that AIS have big role in increased the
quality of decision. But it differs in its performance of AIS; if there is good AIS system
there is good quality of decisions and vice versa.
Table. 3.6 Respondents opinion regarding to contribution of AIS for the organization
objective
No Question Alternative Response In percent
8 Does accounting information Yes 20 66.7
system contribute for the No 10 33.3
attainment of your organization TOTAL 30 100
objective?
Source: primary data, 2022
The above table show that 20(66.7%) of the respondent confirmed that accounting information
system has contributed for the attainment of the organization objective and the remaining
10(33.3%) respondents’ has no confirm for contribution. So accounting information system
has vital role for the attainment of the objective in Moha soft drink factory.
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Table. 3.7 the role of accounting information system in Moha soft drink factory
No Question Alternative Response In percent (%)
9 What is the role of Improved decision 12 40
accounting information making
system in Moha soft drink Improved efficiency 6 20
factory administration? Improve 2 6.7
management
reporting
Improve transaction 5 16.7
processing
Improve sharing of 5 16.7
knowledge
TOTAL 30 100
Source: data collected through questionnaire, 2022
As the table depicts, above all of the respondents said that the role of AIS in Moha soft drink
factory administration is in all aspect such as in improved decision making 12(40%),
improved efficiency 6(20%), sharing of knowledge 2(6.7%), improved management reporting
and transaction processing 5(16.7%). So that we can perceive from this, AIS have a big role in
administration of one organization.

Table.3. 8 knowledge gap exist b/n different level of management

No Question Alternative Response In percent (%)
10 Does knowledge gap exist Yes 20 66.7
b/n different level of No 4 13.3
management in Moha soft Do not know 6 20
drink factory? TOTAL 30 100
Source: from questionnaires, 2022
The majority of respondents, to the extent 20(66.7%) confirm that there is a knowledge gap
between different levels of management, 4(13.3%) of the respondents do not agree in the
existence and 6(20%) are those who doesn’t have a knowledge weather a gap is exist or no.
Therefore, this is shows a knowledge gap existence between different level of management
of the organization.
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Table.3. 9 strategic position pursuing in Moha soft drink factory
No Question Alternative Response In percent (%)
11 What strategic position is Varity based 6 20
Moha soft drink factory A need based 4 13.3
pursuing? An access 20 66.7
based
TOTAL 30 100
Source- from questionnaires, 2022
6(20%) of the respondents said that the organizations management is pursuing a variety based
strategic position , 4(13.3%) answered that the management of Moha soft drink factory, is
following need based and 20(66.7%) of the respondents said that the organization strategic
position pursuing an access based. As it can be observed the majority of the respondents
replied the management of Moha soft drink factory is pursuing an access based strategic
position.

Table.3. 10 Helpfulness of AIS to achieve strategic position

No Question Alternative Response In percent (%)
12 How help full has Very much 18 55
accounting information help full
system to achieve this Help full 12 45
position? Not help full 0 -
No opinion 0 -
Total 30 100
Source: data gathered through questionnaire, 2022
From the table 12 shows – 18(60%) of the respondents replied that the AIS plays an essential
role or very much help full in helping achievement of the strategic position,12(40%) replied
that accounting information system has helpful. So that accounting information system is
crucial for the achievement of strategic position of an organization.
Table.3. 11 Accounting information system problem exist in organization

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 No Question Alternatives Response In percent
13 Is there accounting in Yes 10 33.3
formation system problem No 17 56.7
existed in Moha soft drink I don't know 3 10
factory? TOTAL 30 100
Source: data gathered t through questionnaire, 2022
Based up on the above table there is some problem existed in the organization which is
accounting information system related 10(33.3%). Most of the respondents or 17(56 7%) of
them said that there is no accounting information system problem existed in the organization
and the rest respondents 3(10%) of them are doesn't have a knowledge weather accounting
information system problem has existed or no. so the above table 13 shows the problem
existed in Moha soft drink factory is less regarding to accounting information.
Table. 3.12 problem existence
No Question Alternative Response In percent (%)
14 If there is a problem, what Delay in process 5 16.7
is accounting information Delay in 10 33.5
problems existed in Moha communication
soft drink factory? Data redundancy 6 20
In consistency 3 10

misunderstanding 4 13.3
Other 2 6.7
Total 30 100
Source: through questionnaire, 2022
Based up on the above table there is 5(16.7%) delay in process, 10(30%) delay in
communication, 6(20%) data redundancy, in consistency, 3(10%) miss understanding and
2(6.7%) are other. Based on in this table most of the accounting information system problems
existed because of delay in communication between in different department and branches of
the organization.
Table.3. 13 problems existed in implementing AIS
No Question Alternative Response In percent (%)
15 Is there any problems Yes 7 23.3

20
 existed in implementing No 18 65
accounting information I don't know 5 16.7
system in Moha soft drink Total 30 100
factory?
Source: data gathered through questionnaire, 2022
above table shows that 13(60%) of the respondents said that there is no problem for the
implementation of accounting information system,7(23.3%) of them are confirm the existence
of problems in implementing accounting information system and the remaining 5(16.7%) are
they doesn't have any knowledge about problem existed the implementing of accounting
information system. Based on the above information the researchers concluded that the
implementation of accounting information system in Moha soft drink factory more or less
effective.
3.3 Analysis of Interview
In order to aid the research, the information was gathered by the way of interview from Moha
soft drink factory finance vice manager. The AIS issues were raised during the interview in
order to make valuable discussion on study. The following are essential points that gathered
through the interviews.
 The components parts of Moha soft drink factory AIS. The main component parts of
Moha soft drink factory are enterprise sales planning and enterprise resource planning.
All departments such as supply department, production department, marketing
department, finance department are integrated with the data base for the effective
working process of accounting information system. So the above two component parts
of data base are importance for the implementation of accounting information system.
 The main inputs of Moha soft drink factory in accounting information system is such
as chart of account, salary payment, maintenance closing entry and different
information technology facilities. This all inputs are important for facilitate the work
of accounting information system in Moha soft drink factory.
 The role of accounting information system in Moha soft drink factory like
consolidated financial statement, for data security, for time consuming and for
smoothing the work of Moha soft drink factory day today activity. In the Moha soft

21
drink factory all related department work integrated using data base server which
every organization, information settled so the possibility for misunderstanding is less.

22
 CHAPTER FOUR
4. SUMMARY, CONCLUSION AND RECOMMENDATION
From the research finding and from review of related literature the following summary,
conclusions and recommendations are forwarded by taking the objective of the research under
consideration.
4.1 SUMMARY

 Most of employees of Moha soft drink factory are their educational qualification is
bachelor art degree.

 Most of Moha soft drink factory employees are stayed above six years and they get
experience from the organization.
 Accountant who involved in the use of accounting information system in the routine
activity of Moha soft drink factory has an advantage.
 Most of the organization employee’s awarded about accounting information system.

 Accounting information system used by organization is effective for administrative

decisions.
 Accounting information system have great role in administrative decisions.
 AIS have big role in increased the quality of decision.
 Accounting information system has vital role for the attainment of the objective in
Moha soft drink factory.

 AIS have a big role in administration of one organization.

 There is a knowledge gap existence between different levels of management of the
organization.
 The majority of the respondents replied the management of Moha soft drink factory is
pursuing an access based strategic position.
 Accounting information system is crucial for the achievement of strategic position of
an organization.

 The problem existed in Moha soft drink factory is less regarding to accounting
information

 Most of the accounting information system problems existed because of delay in

communication between in different department and branches of the organization.

23
 The implementation of accounting information system in Moha soft drink factory
more or less effective
 The two component parts of data base are important for the implementation of
accounting information system (enterprise sales and resource planning).

 All inputs are important for facilitate the work of accounting information system in
Moha soft drink factory.

 In the Moha soft drink factory all related department work integrated using data base
server so the possibility for misunderstanding is less.

4.2conclusion
• A vital role of the accounting information system is help to consolidate financial
statement, to secure the data and smooth the day to day working activities of the
organization. The accounting information system major contribution to the
organizations is its helpfulness for administrative decisions.
• Accounting information system is vital to all organization in improving decision
making, management reporting, sharing knowledge, in improving efficiency, in
improving transaction processing and so on. Every organization either profit or
nonprofit oriented need to maintain the accounting information system.
• The accounting information systems major contribution to the company top
management objectives is the development of long-range as well as short-range
operational budgets. So that accounting information system is main tool for the
achievement of organizational objectives.
• In our case, there is a knowledge gap on the use of accounting information system
because of delaying in communication and data redundancy between different levels
of management.
• The quality of decisions in organizations is highly affected by accounting information
system which in turn affects the administration, in our case; accounting information
system increased the quality of decision, effective administration, keeping the
financial information from miss use.
• Accounting information system also important for providing relevant information to
external users about the organization financial status.

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 4.3 Recommendations
Based on the findings, in order to avoid or possibly reduce the problem existing in accounting
information system and its impact on administration some recommendations can be suggested
like:
• Moha soft drink factory should check the information disperse in the company in order to
minimize the knowledge gap.
• To increase the awareness of the management, and employees about accounting information
system
• In order to provide good quality of decision Moha soft drink factory should increase the
performance of accounting information system. For example by introducing latest accounting
information system software’s.
• Moha soft drink factory should update and revised its accounting information system in order
to be competitive in the sector.
• Effective communication and information flow is important for a good accounting
information system, and the organization should provide communication channels between
top and lower levels of management regarding long and short term objectives and practical
implementing of those objectives.
• Co-ordination from the top management and lower management will ensure proper interpretation
and implementation of the accounting information in decision-making. Therefore, we
recommend that every personnel should know where he or she belongs in the entire organization
and also see him or herself as part of the corporate whole. These individuals must take part in
decision-making process, at least at the functional levels.

25
 REFERENCES
 Chang YW (2001) Contingency factors and accounting information system design in
Jordanian companies. Journal of Accounting Information System.
 Chenhall, R.H. (2003): “Management control systems design within its organizational
context: findings from contingency-based research and directions for the future”, Accounting,
Organizations and Society, 28, 2-3, 127-168
 Huber, G. P. (1990). A theory of the effects of advanced information technologies on
organizational design, intelligence, and decision making, Academy of Management Review,
15(1), 47-71. IBIMA Business Review 12.
 Huda bin Mohammed, Abdel-Nour Mousawi, and The Impact of the Use of Information
Systems on the Performance of Economic Institutions: Case study on insurance companies in
Algeria, "the pressing issues of the emerging economies in the modern business environment."
14/15/4 / 2009
 Hunton, J. E. (2002). Blending information and communication technology with accounting
research, Accounting Horizons, 16(1), 55-67.
 James A. Hall (1998), AIS 2ndedition, USA, south western college publishing.

 James [Link] (2010), Accounting information system, 7th edition, USA, south western college
publishing.
 Kren, L. (1992): Budgetary participation and managerial performance: The impact of
information and environmental volatility.
 Marshal B. Romney and Paul J. Steinbart (2012), AIS, 12 th edition, USA, Pearson education
limited.
 Nancy A. Bagrannoff, MarkG,Simkin and [Link] ( 2009) , Core concepts of AIS ,
11th edition ,USA ,George Hoffman .
 O,Brien (1997), Introduction to information system 8th edition, USA, von Hoffmann press.

 Ozomo Samuel,2013 IMPACT OF ACCOUNTING INFORMATION SYSTEMS ON

ORGANIZATIONAL EFFECTIVENESS OF AUTOMOBILE COMPANIES IN KENYA
 Romney and Steinbart(2009) ,Accounting information system 11th edition, USA, prentice hall.

 Salem, Badr Al-Din, Ahmed, Nasr al-Din (2013), The Role of the Qualitative Characteristics
of Accounting Information in Increasing the Efficiency of Planning and Control of Financial
Institutions in Sudan, Economic Sciences Magazine,
 [Link] soft drink [Link]

1
  Zimmerman J. L. (1995): Accounting for decision-making and control, Chicago: Irwin

ANNEX
UNITY UNIVERSITY
RUKIYA CAMPUS
DEPARTMENT OF ACCOUNTING AND FINANCE

QUESTIONNOIRE
I am a graduate student in the department of accounting and finance at Unity
university Dessie special campus. Currently and I am undertaking a research
entitled “Assessment of the role of accounting information system and its impact
on administration in case of Moha soft drink factory. You are one of the
respondents selected to participate on this study. Please assist us in giving
correct and complete information to present a representative finding on the
current status of Accounting information system and its impact on
administration. Finally, I confirm that the information you share us were be kept
confidential and only used for the academic purpose. Thank you in advance for
your kind cooperation and dedicating your time.
Instructions:
 No need of writing your name
 Please use a () mark in the appropriate box to indicate the answer
 Please write a short and precise answer for open ended questions
 Multiple selection is possible among the choices
I. Personal informations
1. Educational background
 Diploma  BA degree  MA/MSC degree
 Other please specify (if any) ___________
2. How long have you been in Moha soft drink factory?
2
  1-5  6-10  11-20  above 20
3 Current position  Secretary  Financial accountant head  Accountant
 Casher  Other
II. Research related questions
3. How is the awareness of Moha soft drink factory management about the use
and implementation of accounting information system?
 High awarded  Awarded  Less awarded  No opinion
4. Do you believe that accounting information system used by Moha soft drink
factory is effective for administrative decisions?
 Strongly agree  Agree  Neutral
 Disagree  Strongly disagree
5. How accounting information system helps to your business in administrative
decisions?
 Very much helpful  Helpful  Not helpful  No opinion
6. In your opinion, how do you evaluate the effect of accounting information
system on the quality of decision of your organization?
 Increase the quality  not change its quality
 Decreased the quality  not sure
7. Does accounting information system contribute for the attainment of your
organization objectives?
 Yes  No
8. What is the role of accounting information system in Moha soft drink factory
administration?
 Improved decision making  improved efficiency
 Improved management reporting  improved transactions processing
 In sharing of knowledge

3
9. Does knowledge gap exist between different levels of management in Moha
soft drink factory?
 Yes  No  don’t know
[Link] strategic positions is Moha soft drink factory pursuing?
 A variety based  A need based  an access based
[Link] help full has accounting information system to achieve this position?
 Very much helpful  Helpful  Not helpful  No opinion
[Link] there accounting information system problem existed in Moha soft drink
factory?
 Yes  No  I don’t know
[Link] there is a problem, what is accounting information system problems
existed in Moha soft drink factory?
 Delay in process  Delay in communication
 Data redundancy  in consistency
 Misunderstanding  Other, please specify
_______________________
[Link] there any problems existed in implementing accounting information
system in Moha soft drink factory?
 Yes  No  I don’t know

4
 Interview
1. What are the component parts of Moha soft drink factory accounting information system?
2. What are the main inputs of accounting information system of Moha soft drink factory?
3. What are the roles of accounting information system in Moha soft drink factory?