vii

ABSTRACT

This research is on the challenges of cost benefit analysis in a

computerized Accounting System. The purpose of this study is to
enquire into the viability or other wise of computerized accounting
Systems, with particularly reference to coca-cola Bottling Company,
Enugu. The objective of the study is to ascertain if the introduction
computer system may lead to industrial unrests as workers resists
change. Also, the method used in this study is chi-square while the
findings in the process of this research work is the implementation of
computerization of coca-cola bottling Plc Enugu and also the
recommendation for the work is that the company should motivate its
personnel more on the use of computers.
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TABLE OF CONTENT

Title Page - - - - - - - - - -i

Approval Page - - - - - - - - -ii

Certification Page - - - - - - - -iii

Acknowledgement - - - - - - - -iv

Dedication -- - - - - - - - - -vi

Abstract - - - - - - - - - -vii

Chapter One

Introduction

1.1 Background Of The Study - - - - - -1

1.2 Statements Of The Problem - - - - - -7

1.3 Statement Of The Objective - - - - - -7

1.4 Research Questions - - - - - - -8

1.5 Research Hypotheses - - - - - - -9

1.6 Scope Of The Study - - - - - - -11

1.7 Significance Of The Study - - - - - -11

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1.8 Limitations Of The Study - - - - - -12

1.9 The Cost Benefit Analysis - - - - - -13

Chapter Two

Review of Related Literature

2.1 Effect on Personnel - - - - - - -16

2.2 The Feasibility Study - - - - - - -18

2.3 System Cost versus Size of Organization - - - -26

2.4 Seeking Expert Advice (The Computer Consultant) - -33

2.5 Data Processing Function Within The Organization - -36

2.6 Capital Budgeting Techniques - - - - -40

Chapter Three

Research Methodology

3.1 Research Design - - - - - - - -43

3.2 Sources Of Data - - - - - - - -43

3.4 Area Of Study - - - - - - - -44

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3.4 Population Of The Study - - - - -45

3.5 Determination Of Sample Size - - - - -46

3.6 Reliability Test: Test Re-Test Method - - - -48

3.7 Validity Test - - - - - - - -48

3.8 Method Of Data Analysis/Techniques - - - -49

3.9 Decision Criterion For Validation Of Data - - - -50

Chapter Four

Data Presentation And Analysis

4.1 Data Presentation- - - - - - - -51

Chapter Five

Summary Of Findings, Conclusion And

Recommendations

5.1 Summary Of Findings - - - - - - -68

5.2 Conclusion - - - - - - - - -69

5.3 Recommendations - - - - - - -71

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Bibliography - - - - -- - - - -75

Appendix I - - - - - - - - -77

Appendix II - - - - - - - - -78
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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Computer has been defined as electronic machine that accept data

(input) processes it to produce useful result (output). It is also

capable of storing information. It uses predefined instruction known

as computer programs to execute the task in order to produce

output. Computers technology has helped in no small measure in

activating the problems encountered using the manual tools and

machines. Computerization ranks prominently in the commanding

heights of economic activities of the business world. Through

computerization, industries have been able to control their cost of

production heading to high profit margin, sustainable growth and

development, accurate and lasting records.

The manufacturing industry has come a long way from the manual

era of machine operation to modern day science and technology.

Within this period, a number of major changes took place in the

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business world with significant positive impact on the business world.

Notable among these changes are those changes in manipulation of

accounting records, fantastic computer designs etc.

We have various types and categories of computers which perform

diverse functions; however, the one of interest and relevance to this

research is the digital type of computer.

The history of the digital computer data back to the Abacus which

was intended in China more than a thousand years ago and used

to add, subtract, multiply and divided . This was followed by the

counting invented by John Napier in the 1600’s. Blais

followed closely with a mechanical machine that could do similar jobs

more efficiently. GOH friend Von Liebritz invented a more improved

version of Pascal’smachine. Other great mathematicians and

investors like Jacuard, Babbage, Grace Hopper etc made greater

strides towards, building calculating machines. An American Herman

Hoterrith, developed the mechanical members calculator which was

used to read punched cards and greatly facilitated the sun of 1890 in

that country. Hoterrith founded a company to sell his inventions and

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today that company has grown to become IBM which is (international

Business machines) the largest computer company in the world.

The era of modern computers began sometime in the period

preceding the end of the Second World War when the vast

calculations required in the production of the first bomb necessitated

he buildings of a giant computer which operated on vacuum tubes.

This computer was huge and expensive and only affordable by few.

Thus, from this period on wards, with the introduction of new

technologies, computer became smaller in size and cheap as well:

such that today we have the micro computer which costs a few

thousand naira and can do job undreamed of forty years back.

There are three classes of computers now in use viz;

1. The micro –computers

2. The mini- computers

3. The mainframe computers

i. MICRO – COMPUTERS: These computers are designed to

handle simple data processing functions; it is the smallest general

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purpose computer. Micro computers are capable of handling

independent task and do not led themselves to integrated

network. Some just j contain a keyboard for input entire, where

data is keyed in by an operator of programmes. Others can

contain sophisticated input/output forms. Micro computers and

their speed are designed to be stand alone computer, which

means that they operate independently, on they can be part of a

network or system. Their memory is smellier than that of

mainframe or mini computers and their speed of processing data

is slower also.

ii. A mini computer –is a small computer relative to mainframe

and maybe be defined as a seated down mainframe, as the

processor and peripherals are physically smaller. Although the

processor may be physically smaller, it is powerful than the micro

computers; several people can make use of the mini computer to

do different jobs simultaneously through a linkage channel called

the work-stations or terminals. It can be used to in inventory

control, customers account records and employees payroll. It can

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also be used to prepare final accounts of companies using

computerized accounting system.

iii. The mainframe computer is large and powerful. They have

higher processing speed and capability than both mini and micro

computers. These are used by large organization with immense

data processing deeds. Computers can be used in several fields as

widely diverse as law, medicine and architecture. However, the

principal concern within the scope of this research work is a data

processing and analysis for business organization.

In the past thirty year or so, there has been a tremendous advance

in technology of automation. The introduction and adaptation of the

computer to business has led to revolutionary changes in data

processing methods in advanced countries.

These changes are fast spreading to the developing world. In present

day Nigeria, there is a noticeable and marked trend towards

computerization of computers, often with little or no back-up

capability often with little or no hack-up capability as guards’ maintenance

and utilization.
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Companies are begin attracted to this computerization possibly with

the belief that it is sound business to sight coupled with the feeling

that it is in vogue for a company to say it is fully computerized.

In answering the question why any organization should consider the

transition to computerized accounting system Larry J. Campbel

(1979) observes that research by behavioral scientists reveal that he

fundamental reasons for transferring to some form of mechanization

in information systems are the same as any other tact of an

enterprise. Companies turn to mechanization because.

1. Company growth exceeds the capability to expand the present

processes by any other reasonable scheme.

2. Technology changes, force different and more computer tactics

that can best me mechanized.

3. Efforts to cut costs force searches for alternative. Added it all

these is the requirement of data for decision making at a faster

speed to meet up with competition.

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1.2 STATEMENTS OF THE PROBLEM

The problem of this study includes:

1. The problem of industrial unrest

2. The problem of obsolesce or unsuitableness for the needs of

the company.

3. The problems of companies not realize the full potentials of the

computer system they have installed thereby leading to

inefficiency.

4. The problem of company’sdataprocessing operation which are

amiable to automation may be over looked.