i

TITLE PAGE

THE CHALLENGES OF COST BENEFIT ANALYSIS, IN A

COMPUTERIZED ACCOUNTING SYSTEM

(A CASE STUDYOF COCA-COLA BOTTLING COMPANY,

ENUGU)

BY

IGBAJI CECILIA, O.

ACC/2009/524

A RESEARCH WORK PRESENTED TO THE DEPARTMENT OF

ACCOUNTANCY

IN PARTIAL FUFILMENT FOR THE AWARD OF BACHELOR

SCIENCE (B.sc) IN ACCOUNTING

FACULTY OF MANAGEMENT AND SOCIAL SCIENCES

CARITAS UNIVERSITY, AMORJI- NIKE, EMENE ENUGU

STATE,

NIGERIA

AUGUST, 2013
 ii

APPOVAL PAGE

This project titled “The challenges of cost benefit analysis, in a

computerized Accounting System” has been assessed and approved

by Accountancy Department Committee, Faculty of Management and

Social Sciences.

_____________________ _______________

Dr. Frank Ovute Date

(Supervisor)

_____________________ _______________

Dr. Frank Ovute Date

(Head of Department)

_____________________ _______________

External Examiner Date

 iii

CERTIFICATION PAGE

This is to certify that this research work titled “The challenges of cost

Benefit Analysis Computerized Accounting System” was carried out by

Igbaji Cecilia, O. with Reg. No ACC/2009/524 in the Department of

Accountancy Caritas University, Amorji-Nike, Emene, Enugu.

 iv

ACKNOWLEDGEMENT

I wish to express my appreciation to all who contributed to the

success of this work, my sincere gratitude goes to my Supervisor Dr.

Frank Ovute for guiding me and seeing this work to a successful end.

The efforts of my Head of Department Dr. Frank Ovute is very much

appreciated, for his fatherly and all embracing care and advice. My

Dean of Faculty Prof. Umeh and my lecturers Mr. Obani Desmond,

Mr. Chinedu Enekwe, prof. Nwadialor, E. O, Mr. Ugwu James and Mr.

Agu, their efforts is very much appreciated and honoured.

I am also very grateful to my parents Mr. and Mrs. Okpen James

Igbaji, whose encouragement and prayers helped in the success of

struggle that manifested itself in this work. Thanks to my brothers

and sisters for their prayers and encouragement. A very big thanks to

my uncle and his wife.

I am highly indebted to my Director, Acoountant Emma Odobi and

his wife for the immense contribution and understanding.

 v

I am grateful to my friends, Agbo Divine, Njoku Mary, Christiana

Akanno, Sim Maigida and Ella Kajor and to my roommates, Omanyo,

Oge Uche, Ugwu Ogechi, Chinonye Ugwu, Maryann, Mmbagu and

Mary Vivian Igweonu.

Finally, I am indebted to all others who contributed in one way or the

other in making my work successful. I deeply regret that due to lack

of space on this page, their individual names are not written. May the

good Lord reward you with his choicest blessings.

 vi

DEDICATION

This work is specially dedicated to my Almighty God for his love,

protection and care and to Dad Mr. Okpen James Igbaji for his love

and encouragement.
 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.
 viii

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

 ix

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

 x

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

 xi

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

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

Appendix II - - - - - - - - -78
 1

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

 2

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. Blaise Pascal

followed closely with a mechanical machine that could do similar jobs

more efficiently. GOH friend Von Liebritz invented a more improved

version of Pascal’s machine. 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

 3

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

 4

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

 5

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.

 6

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.

 7

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’s data processing operation which are

amiable to automation may be over looked.

1.3 STATEMENT OF THE OBJECTIVE

1. To ascertain if the introduction of computer system may lead to

industrial unrest as workers resists change.

2. To identify the wrong computer systems either in terms of

obsolesce or unsuitableness for the need of the company.

 8

3. To determine how companies can realize the full potentials of the

computer systems installed thereby leading to efficiency.

4. To examine how companies data processing operation can be

amenable to automation so that they cannot be over looked.

1.4 RESEARCH QUESTIONS

The followings are the research questions

Research questions help in obtaining adequate information within the

preview of any chosen topic. Answers to questionnaire will help in the

discussion of a research question, some of the research questions

which will help to achieve the objective of the study Viz:

1. Is the turnover of workers higher now that you use computer

system? Yes/no.

2. Is the high cost of procurement and installation yielding good

returns? Yes/No.

3. Are your computers very expensive to maintain? Yes/No

 9

4. If yes, what is the maintenance cost of your computers yearly?

5. Is the usage of computers advantageous to your company?

Yes/No.

1.5 RESEARCH HYPOTHESIS

These are problems that put together all the concepts construct, and

variables and give the researchers a clear view of the problem under

study. That is, they are prepositions put forward by a researcher to

enable him or her solve the problem(s) formulated and to achieve the

objectives of the research exercise.

The following research, hypothesis are used where

HO: Stands for Null hypothesis

Hi: Alternative hypothesis

1. Ho: Cost benefit analysis, computerized accounting system does

not helped coca-kola bottling company Plc Enugu.

 10

Hi: Cost benefit analysis, computerized accounting system helped

coco-kola bottling company Plc Enugu.

2. Ho: Here is no programme of computer training skills and

acquisition.

Hi: There is programme on computer training skills and acquisition.

3. Ho: Computerized accounting system has no impact on the staff of

coca-kola bottling company Enugu.

Hi: Computerized accounting system has impact on the staffs of

coca-kola bottling company Enugu.

4. Ho: The staffs of coco-kola bottling company does not benefit

from the cost of using computerized accounting system.

Hi: The staffs of coca-kola bottling company benefit from

computerized accounting system.

 11

1.6 SCOPE OF THE STUDY

The challenges of cost benefit analysis, in a computerized accounting

system. The project is restricted to coca-cola bottling company plc 9th

mile, Emene, Enugu State.

1.7 SIGNIFICANCE OF THE STUDY

1. The study will be of immense benefit to the company by

improving the use of computer system.

2. The implementation of computerization of coca-cola bottling

company Enugu has significantly saved cost and has increased

profit maximization.

3. The computerization of coca-cola bottling company Enugu has led

to reduction in labour costs.

4. The introduction of computer did both undermine workers morale.

 12

1.8 LIMITATIONS OF THE STUDY

During the course of this study, some constraints were encountered

by the researcher which limit the scope of and details of the study.

The constraints were numerous as they prove formidable and able to

determine to some external the ultimate outcome of the study.

1. Time was one of the constraints, the little time I have as a student

had to be apportioned between studies, research and other social

endeavors since all the these activities are very important to my

well-being none had to be forgone.

2. Financing a research of this nature is not easy, money is needed

to sought for material, print questionnaires, and post to

respondents and to compile the report. Finance being a scare

resource was a very big constraint to the smooth conduct of this

study.

3. The uncooperative attitude of some people and due to the duty of

secrecy they owe to their company staff makes the not be make

available some important fact.

 13

1.9 THE COST BENEFIT ANALYSIS

1. The benefit of an organization using a computerized accounting

system is important because the organization will be modernized

in its cost of using computer systems for its business.

2. An organization will benefit from the cost of using computers

systems whereby the organization will no longer have to spend

much money on employees to be employed in the cost of using

manual system in the organization because there is no computer

system to make their work faster.

3. The cost benefit which an organization will benefit from using a

computerized accounting system will include the organization

benefiting from the account of the organization not having errors

like in the case of using manual system. In using a computerized

accounting system, an error cannot occur because the computers

will be there to detect error.

4. The organization will also benefit from using a computerized

accounting system if in the case of centralize organization

whereby their staff can at home it they need anything, from the
 14

office, they can go to the computer and get the information they

need from their organization to ease the stress of them going to

the office to get information.

5. In the cost of an organization benefiting from using a

computerized accounting system, the work of the organization will

also be fast and will not be left behind unlike using a manual

system that lead to the organization been slow in their activities.

 15

CHAPTER TWO

REVIEW OF RELATED LITERATURE

The review at literature serves to set the theoretical basis for a

research work. Related literature will be reviewed under the concept

of computerized; accounting system; the analysis of cost benefit of

computerization of accounting system.

This chapter reviews literature relating to the theme and sub-theme

of this study. Major ideas of this section are grouped and presented

under the following:

There seems to be a general consensus amongst most researchers,

authors and managers alike that same computerization of business

data is crucial. Muscleman Hugihes (1980); are of the opinion that

since management dedication are based on up-to-date data, it is

essential that a business management information, system be an

effective one. And the rapidly increase availability of business

information, together with the ever growing complexity and variety of

data to be analyzed required some modern scheme for processing

business information.
 16

The same information is used in many different departments of a

typical business, therefore business data be organized and stored

systematically so that it may be retrieved immediately when needed,

so the mechanization and automating of records handing is a

business “must”. It is this implicit faith in computerization that will be

tested with a view to answering some of the questions raised in the

first chapter.

2.1 EFFECT ON PERSONNEL

According to Ayanyaogu, (1991), there is always the fear that the

use of computers by private establishments will cause mass

unemployment suffered by the present computer literate personnel.

There is a great deal of disagreement about whether computers will

create more or fewer jobs. So some school of thought hold that

computers will cause many workers in government and private

establishments to lose their jobs, while others thinker that presence

of computers will cause more jobs to be created and make the

existing ones more interesting. As the world gradually moves into

 17

the computer and information age, some jobs which people have will

become unnecessary, economically inefficient and result to wastage

of resources and will require those who have them to be retained in

new skills some of the areas that have already been affected

includes, Account clerks, Books, keepers, clerical officers or file

clerks. Okoro (sees the effect on personnel against the background

of workers natural resistance to change which may result in

behaviour which adversely affects efficiency of the computer system,

producing accounting information. Such behaviour may be

manifested in physical sabotage of the system, avoidance and

deliberate attempt to blame the new system for all problems.

Over the years, electronic hard and software have made great impact

into the accounting prospection. In particular, the impact of

computer on efficiency has been phenomental coupled with the rising

volume at business. It is imperative for the accountant to be

computer literature. Kodunmi (1990); therefore advocated training

programme for accounting personnel to equip them for

computerization of industry.
 18

Olukanmi in of the opinion that the introduction certain classes of

computer systems also create new jobs. Another author, Terry

Carbitt (1991) advises that staff reduction should not be a reason for

computerization t least in the short run. He is of the opinion that

the staff should be involved in the introduction of micro-computer

from the beginning and they should be reassured that the micro-

computer is not being introduced to reduce staff but to increase

efficiency. Appleby (1981) shared the same view with Terry but went

further to stress that workers should be made to be aware that the

computer is for greater business efficiency and not an avenue to

reduce labour costs.

2.2 THE FEASIBILITY STUDY

Many reasons may lead an organization into considering the use of

computer. Whatever the reason, or combination of reasons, the

Board of Directors wishes to know whether a computer is appropriate

for the business and, it so which procedures are suitable for

conversion and what it entails. The object of a preliminary study is

 19

justified. It should indicate the scale of the computer system required

which must be in line with the type of business carried out and give

some of the magnitude of costs involved.

Accounting to Lostly (1969) the following characteristics are desirable

in the man who will carry out the survey:-

Poor record keeping, it is also envisaged, will be a hindrance to

obtaining adequate information especially from the company under

study.

Reservations on the part of respondents who are to be orally

interviewed is equally expected. It is conventional for people in

positions of authority not to be forth coming when their views are

sought on issues because they feel the issues are sensitive and

anything they say may be quoted are thereby endanger their

position.

1. A sound knowledge of the business itself. He should certainly have

some knowledge of possible areas of application, and a feeling for

the long term, future of the organization.

 20

The importance of a sound knowledge of the business cannot be

overstated. Computer sellers are after asked to carry out the survey,

but these studies are frequently unreliable due to inadequate

knowledge of the business.

2. The person should have a reasonable status in the organization. It

is a very common tailing to embank upon an ambitious data

processing project with a man who is totally inadequate in status

and background to carry it through.

3. The person should be widely acceptable in the organization so as

to smooth over antagonisms which are certain to arise in the

course of a major innovation as the introduction of the computer.

4. Since the company’s activities must be considered on a systems

basis, the main selected should have some experience of the

systems approach, gained either through the organization

framework in managing or through operations research.

The next step is to consider his terms of reference which must be

agreed in consultation with him. Ideally, they should give sufficient

guidance to keep him on the right lines without being so narrow that
 21

they exclude from investigation potentially profitably have some

knowledge of computer use in data processing. This may be obtained

through undergoing short courses on offer by computer firms.

The entire management should be co-opted into the computerization

drive because unless it becomes part of the thinking of management,

they will be unable to fully assimilate the scope and limitations for

effective utilization.

The next step in the feasibility study is identification of the distinct

systems that may be suitable for computerization. For example, a

computerized order handling system might include the present

functions of sales, accounting, credit control and inventory control.

For each system identified a rough idea of the following is required;

1. How many staff are employed?

2. What volumes of data are processed and what are the future

projections?

3. How complex is the processing and what are the nature and

volume of exceptions?
 22

4. What deficiencies are apparent in the present systems?

More qualitative questions now have to be asked such as:

1) What improvement in customer service possible and desirable

e.g. meeting orders more quickly or being out of stock less

often?

2) Is better control possible? Speeding up the information

feedback loop may make the organization more flexible if

management can take advantage of it.

A reduction inventory may follow tighter control.

3) What expansion of the system is likely, and what are the

implications for data processing?

As a result of the survey, recommendation is then made to the board

1. A statement of which area or areas merit further investigation.

2. An overall strategy for the investigation.

3. A detail timetable derived from (2).

4. An estimate of the resources required (men, money material).

 23

5. An indication of the approximate costs of computer which may

be involved.

6. Similar approximation of the benefits expect where appropriate.

Mondy, and Flippo (1978); have identified a common mistake

among many firms to be that they first purchase a computer

and then attempt to design the information system around the

computer. The best dealer will look at the need of the business,

advice on the software being considered and democratic it on

the hardware being contemplated or purchase.

This kind of dealer will provide full after sales service and advise on

maintenance contracts. The system should have free maintenance

during a warranty period. After this, a maintenance contract should

be entered into cost of which will be in the region of 10% of the total

system cost per year, Boohe (1976).

The computer can be used in a wide variety of ways and often it is

only the potential user who can appreciate and suggest these uses.

It is improbable that the user will fully exploit the potential of the

computer if he depends on experts to tell how best to use it. These

 24

experts are experts in computing net experts in accounting and

finance. Efforts expended in computerizing accounting system will

prove to be a worth white the company would be bogged down with

unreasonably high overheads. It would have surplus capacity and

under utilization of both man and machine (OP, Cit).

Larry J. Campbell observes that with the advent of modern computing

devices economic feasibility becomes loss of problem than in the 60s

and 70s. Although cost remains an important variable-particularly for

the smaller organization, the cost per unit of work drops in a

computerized system, as growth occurs. For example, the cost of

Payroll check decreases within a computerized information system as

personnel increases. Total costs over a five year period, equipment

personnel site preparation and training are computed at the average of

2% of gross sales, having shown a decline from about 2.7% in 1st year

to 20% in 2nd year to 1.9% in 3rd year to 1.7% in 4th year and 1.6%

in the 5th year.

This includes an added loading of 5% envisaged as increase

overheads. Losty (OP.Cit) notes t hat only those costs of the present
 25

system which will be displayed by the computer should be included in

the justification and great care must be taken to ensure that

displaced costs are realistic and can be achieved.

A person cannot tell where they want to go until they know where

they have been. Therefore, the present system must be studied

before any computerized information system is introduced. Possible

questions to ask are:

1. What is the present information flow?

2. How valuable is the information in terms of decision making

says Luce (1987).

3. How is the information used?

The line and size of business a firm engages in determines the types

of software packages to capital budgeting, inventory, gearing and

dividend policy will help in management decision. These could be

liked to a standard costing system, direct costing system, direct

costing system or some other decision orientated accounting system.

 26

2.3 SYSTEM COST VERUS SIZE OF ORGANIZATION:

It is quite obvious that for a small organization with an invariably low

volume of data to be processed, an automated system is not needed.

The economics of scale will not be in favor of that company with the

result that why is it then, that the simple computerized accounting

system costs ten times the original estimates and still doesn’t work

properly after several years? Why are companies spending a fortune

to get better management information but failing to use it effectively

in decision making? Why are administrative costs rising instead of

falling? Why are most installations (of computer) a dead loss when it

comes to making a return on investment? Asked Fay, (1972) she

goes to identify over-optimism, Ostrichism and Isolation as the can

active factors.

A typical cost justification, according to Losty (OP. Cit) might take

the general form indicated in table I: each heading would be

supported by a detailed analysis.

 27

Table 1: A framework for costing.

Year 1 Year 2 Final year

1 System cost Xxx

2 Running costs xxx

3 Conversion costs xxx

4 Total costs

5 Displaceable costs

6 Displacement attained

7 Other benefits

8 Total savings

9 Balance

10 Cumulative balance

1. System costs are frequently under estimated. They include

management, system analysis, programming, education and

travel. Number of staff and salaries must be projected for each

year during the life of the project.

 28

2. Running costs relate to the operating of the system as opposed

to its development. Machine and accommodation costs together

with salaries for computer management, operations librarians,

analysis clerks to handle data re a substantial cost.

3. Conversion costs should be shown separately to focus on a

considerable cost which distorts the total by large amounts at

irregular interval. It has already been noted that conversion of a

file from original documents to magnetic storage may cost

several thousand pounds.

4. Total costs is the addition of the first three items. That is, costs,

running cost and conversion costs.

5. Displaceable costs are shown supported by breakdown for each

activity in the business. The figure is the element of cost to be

replaced by the computer, if the activity is expanding, the figure

will rise.

6. Displacement attained is that proportion of displaceable costs

which will actually be saved, it reflects the phasing taking on

 29

which is complete when displaceable and displacement costs are

equal.

7. Other benefits places a value on those items which are hander

to evaluate, for example doing something which is impossible

without the computer should total cash out flow (4) exceed

displacement (6) then a higher cost data processing system is

attained. We can only then decide whether other benefit justifies

the higher cost data processing system.

8. Total savings are (6) + (7) i.e, displacement cost plus other

benefits. Obviously displaceable costs (5) cannot be included so

that displaced costs would not appear twice. Balance (9) and

cumulative balance (10) are the difference and cumulative

difference total cost (4) and total savings (8). If discounted cash

flow (DCF) of similar techniques are used, these will be the

figures to which discounting is applied.

System costs cannot be fully evaluated without the cost of

maintaining a back-up system being included. Owing to the sensitive

 30

nature of information contained in the computer files back-up

systems are usually necessary.

Burtles (1990) noted that it is notoriously difficult to gather

information about computing disasters, as they are usually not

reported, in some cases; they are not even recognized until much

later. Many cases are quietly hushed-up for fear of embarrassing the

victims and alarming their customers.

Okpan (1990) in distinguishing between file retention which he notes

will provide the first line of defense against relatively minor loss,

white security generally conceives of all measures taken to

safeguard files against total loss. In essence, the problem is one of

how to reconstruct records and files once they have been damaged.

One of the most popular methods he notes is the “grand father-

father-son” concept. This concept includes the retention of back-up

files such that the current master file can be reconstructed. The

diagram below illustrates s t he file retention plan. Particularly

important files may be retained to the great- grandfather generation

it considered necessary.
 31

Disk files are more difficult to reconstruct than tape files because up-

dating old records with new ones is destructive. The old or

superseded, data on a record is removed (destroyed) when new data

is entered in the same place on a disk.

One expensive means of reconstruction is to have a disk file “dumped

into tape periodically (each day or week). This file copy along with

the related transaction file also retained can serve as the grand-

father to the current disk file (son).

 32

Fig 1:

GRAND FATHER, FATHER AND SON IN MAGNETIC TAPE FILE

TRANSACTION
FILE

OLD NEW
SAVE FOR
MASTER MASTER
FILE UPDATE RUN CURRENT
FILE FILE
USE

TRANSACTION
RELEASED
GRAND WHEN NEW
FATHER GRAND FATHER
MASTER FILE PREPARED
IF NOT
REQUIRED
SAVED FROM PRIOR FOR OTHER
PROCESSING PURPOSES.
PERIOD
 33

2.4 SEEKING EXPERT ADVICE (THE COMPUTER

CONSULTANT)

In the high technical exercise of selecting and installing a computer a

suitable consultant can fill gaps in the expertise of management, and

help them to identify and evaluate course of action including the

choice of items of equipment. To use a consultant effectively it is

important to match the abilities of the consultant to the job to be

done.

Two separate problems thus arise: Identification of the job and

evaluating of the consultant, even if the two are highly interrelated

management must decide what the main elements in the task are,

which they can discharge for themselves, and which should be

allocated to a consultant.

In some cases a consultant may be retained to copy out the

preliminary study which includes identifying the main elements in the

task. No reputable consultant will advise without properly agreed

terms of reference, and he should not proceed beyond these without

authorization. The allocation of tasks between the consultant and the

 34

organization demands careful thought. Management must weighing

the major decisions after carefully weighing the advice of the

consultant.

While the organization behind a consult can be important,

nevertheless it is the knowledge and abilities of one man that are

being paid for. Surely the potential return for the fee involved should

be carefully investigated. It is unfortunate that is rarely done. If the

man cannot cite past clients who are still satisfied with his works and

are willing to verity this, or if he has no suitable previous experience,

his advice is unlikely to be work a substantial fee. Understudy most

consultants give value for. But there are some charlatans whose

existence is only made possible by the I explicable reluctance of

managers to investigate the value they will receive for a considerable

out lay in fees, observes Losty (Op. Cit).

Today’s business leaders do need, access to information technology

expertise at board level, and they are increasing unlikely to find it

internally.
 35

This has led management to increasingly turn to outside consultants

to offer assistance on practically all aspects of information

technology, portable micros to large mainframes, strategic studies to

data input, expert systems to assembler programming observes

white (1990).

Nancy Foy (OP Cit) says that he following questions must be asked:-

1. What is the nature of work done?

2. How competent is the consultant assigned to do the work?

3. How they (the consultants are supervised by their time).

4. How they worked with client staff?

5. How effective were the solutions they proposed or

implemented?

6. Whether the assignment was complete within the timed and

cost estimated?

7. What are the benefits achieved?

8. Whether the consultants would be tired again?

 36

2.5 DATA PROCESSING FUNCTION WITHIN THE

ORGANISATION

When computers first burst upon the business severe in the late

1950’s and early 1960’s the only practical applications were

concerned with the automation of clerical work, accounting, payroll,

inventory reporting, and similar financial jobs. Murdick, Rose and

Clagged (1984) observed that following the classification of

organizational principle of assignment of a service activity by

familiarity, the whelming trend at that time was to assign the

computer to the controller or the chief accountant, unfortunately, this

is where it has remained in many companies. The result has been a

disproportionate emphasis on accounting and related clerical work

this development was a natural one because the computers gave the

accountant an added dimension of importance. However, the result

was reluctance on the part of the financial managers to share the

machine with others. Many have forgotten the first rule of employees

- to exist for the service of the lane operations.

 37

They go further to state that the trend has reversed itself. More and

more academicians and practitioners of business realize that the

information resource of the company ranks alongside the classical

four M’s (money, manpower materials, and deserve a vice

presidential attention just as the other resources.

The exact location in the organization and the authority granted to

the data processing manager is of course, a function of the type of

business the firm is into and how important the information resources

is to it operation.

Alternative assignments of the data processing function are shown in

figure 2 below.

Figure2: Alternative Assignment of Data processing function.

 38

ALTERNATIVE I:

PRESIDENT

V. P V.P V.P
MARICETING OPERATIONS FINANCE

DATA PROCESSING
FUNCTIONS
 39

ALTERNATIVE II:

PRESIDENT DATA PROCESSING

TEAM

V.P
V.P V.P
FINANCE
MARKETIN OPERATIONS
G
ALTERNATIVE III:

PRESIDENT

V. P V.P V.P
MARICETING OPERATIONS FINANCE

DATA PROCESSING
FUNCTIONS
 40

NOTE: ALT 1: Not recommended at anytime

ALT II: Recommended for stages of development

ALT III: Recommended for eventual permanent organization

2.6 CAPITAL BUDGETING TECHNIQUES

Capital budgeting is the whole process of analyzing projects and

deciding whether they should be included in the capital budget of a

form. Samuels and Wilkes (1975) sees technique of capital budgeting

as valuable in computing benefit cost ratio for evaluating

investments. Mbachu (1990) identified the process as involving five

steps. Viz

1. Management should estimate the expected cash flows from a

given project 9asset) including the value of the assets at a

specialized end period.

2. The risk involved in realizing the projected cash flows must be

estimated.
 41

3. Appropriate discount rate (the cost of capital) at which the cash

flow will be discounted must be determined.

4. The expected cash flows are discounted to their present value

in order to ascertain the assets present worth.

5. The computed value is compared to the cost of the project.

Where the asset’s value exceeds its cost, the project should be

accepted.

Weston and Brigham (1978) make it clear at most discussions of

measuring the cash flows associated with the capital projects are

relatively brief, but it is important to emphasize that in the entire

capital budgeting procedures probably nothing is of greater

importance than a reliable estimate of the cost saving or revenue

increases that will be achieved from the prospective outlay of

capital funds cost reduction benefits includes changes in quantity

and quality of direct labour, in amount of flexibility and efficiency. So

many variables are involved that it is obviously impossible to make

neat generalization. However, this should not minimize the crucial

importance of the required analysis of the benefits derived from

 42

capital expenditure as this capital expenditure must be examined in

details for possible additional costs and savings.

They go further to say that the procedures (capital budgeting

Techniques) for determining suitability of projects are no better

than the data input- the old saying “garbage in garbage’’ out,

“Thus, the data assembling process requires continuous monitoring

and evaluation of estimates by those competent to make such.

 43

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

Research design is the specification of procedures for collecting and

analyzing the data necessary to help solve the problem at hand, such

that the difference between the cost and obtaining various levels of

accuracy and the expected value of information associated with each

level of accuracy is maximized. It is a mode or proof that allows for

inferences to be drawn by the researcher concerning casual relation

among the variables under investigation. The research instrument

used in carrying this study is the questionnaire. Survey design.

3.2 SOURCES OF DATA

To every research work, there is always a reliable source from which

data are collected. The two sources of data available to the

researcher are listed below and explained.

 44

a. PRIMARY SOURCE OF DATA

Primary source of data is defined as those data containing the full

research report including all details necessary to duplicate the study.

Primary data are first hand data obtained from the source regarded

as original. They are usually collected for specific purpose. This

source available the authenticity of information required is obtained.

The primary data used in this research was gathered from the

questionnaires.

b. SECONDARY SOURCE OF DATA: These are data from sources

other than the primary source. It covers published materials and

information gathered by other agencies for their own purposes but

which incidentally is of use to the researcher. It includes text books,

journals and lecture notes etc as it is being used for this work.

3.3 AREA OF STUDY

The study area involves coca-kola bottling company limited, Enugu

which is the organization used as my case study.

 45

3.4 POPULATION OF THE STUDY

This is the collection of all staff of a particular organization such as

people, living object. It comprises the relevant management staff of

coca-kola bottling limited, Enugu. The total population of the study is

100. The population distribution is as follows.

NO OF BRANCHES NO OF PERCENTAGE
OF ENUGU POPULATION

Emene Branch Enugu 60 60%

9th Mile Enugu 40 40%

TOTAL 100 100%

Sources: Field survey 2013

 46

3.5 DETERMINATION OF SAMPLE SIZE

A sample is a subset of the population in research; a sample is drawn

through a definite procedure from a specified population. Sampling

refers to the process of selecting scientifically valid samples as well

as generalizing from such samples to the total population. The

sample size is determined by using Yaro Yamere (1962) Formula of

finite population

formula n N

1+N (ei)2

Where n = sample size

N = Population

e = Level of significance or error = 0.05 or 5%

I = Constant

n =100

e = 0.05
 47

100
1 + 100 (0.05)2

n = 100

1 + 100 (0.0025)

n = 100

1.25 = 80

n = 80

sample size were distributed to each branch using Bowley’s

proportional method of formula

Formula = Nh x n

Where h = population of each branch

n = sample size of the study

N = Total population

Therefore, the allocation will be as follows:-

 48

NO OF BRANCHES NO OF PERCENTAGE
OF ENUGU POPULATION

Okpara Avenue 60 60% (80)/100 = 48

Branch Enugu

9th Mile Enugu 40 40% (50%)/100 32

(50%)/100 32

TOTAL 100 80%

3.6 RELIABILITY TEST: Test re-test method

The research instrument administered to population were reliable

because the respondents were constraint, respondents gave almost

same answer to many of the research questions.

3.7 VALIDITY TEST

The questionnaire is designed to elicit response on the challenges of

cost benefit analysis in a computerization, perceptual evidence. From

 49

Nigeria. The measuring instrument (questionnaire) is valid because

my supervisor validated the work and the researcher succeeded in

achieving the objective which is to test whether the researcher

design is capable of eliciting the required response from the

respondents.

3.8 METHOD OF DATA ANALYSIS/TECHNIQUES

The method of data analysis adopted in this study were that of the

use of simple tables in the analysis of data collected, while chi-square

was used for testing the hypothesis.

Formula for chi-square.

X2 = (fo-fe)2

fe

where x2 = calculated value of chi-square

= summation

Fo = Observed frequency

Fe = Expected Frequency

Df =Degree of significance (c-1) (R-1) or (column-I (Row -1)

 50

3.9 DECISION CRITERION FOR VALIDATION OF DATA

In taking a decision, the null hypothesis is accepted if the critical or

table value is greater than the computed value of x2 is greater than

the critical value.

That is, if x2 > 2e, reject Ho (Null hypothesis)

if x2 < x 2e, Accept Ho (Alternatively hypothesis)

where x2 = critical value or table value

x2e = calculated value.

 51

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 DATA PRESENTATION

In this chapter, all the collected data from the questionnaire are

presented , analysis and interpreted.

Table 4.1.1 Questionnaire distribution and collection

Number of questionnaire distributed 80 %

Number of questionnaire returned 50 %

Number of questionnaire not returned 30 %

Source: Field survey 2013

For the analysis, the researcher will be making use of the number of

returned questionnaire which is 50.

 52

Table 4.1.2 Use your company established before civil ?

OPTION NUMBER OF PERCENTAGE

OF
RESPONDENT RESPONDENT

Yes 30 60

No 20 40

TOTAL 50 100%

Source: Field survey 2013

From the above analysis, it can be seen that 60% representing 30

respondents were yes, while the remaining 40% representing 20

respondents were No. This shows that the company was established

before the civil war.

Table 4.1.3 is your company up to 35 years of existence?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 15 30

No 35 70

TOTAL 50 100%
 53

The above analysis shows that greater percentage of respondents

says respondent to the No question at 70% and the yes question

respondents were at 30%

Table 4.1.4 Has your company an organizational chart?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 40 80

No 10 20

TOTAL 50 100%

The above table shows that 80% represents the yes question while

20% represents the No question. It shows that the organization has

organizational chart
 54

Table 4.1.5 your staff strength is made up of

OPTION NUMBER OF PERCENTAGE

OF
RESPONDENT RESPONDENT

Senior Staff 25 50

Intermediate 15 30

Junior 10 20

TOTAL 50 100%

Table 4.1.5 above shows that the percentage of the senior staffs is

505, Intermediate 30% while that of junior staff is 20%. This shows

that the population of the senior staff is higher than that of

intermediate and junior.

 55

Table 4.1.6. What is the annual operating costs of computer system

in bottling company Enugu?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Below 15 - -

15-25 8 76

26-35 12 24

TOTAL 50 100%

Source: Field survey, 2013

From the above table it is obvious that 76% responded to the

operation costs of 15-25 while 24% represent the operation cost of

26-35. This shows that the operation cost of computer system is not

than much.
 56

Table 4.1.7 is the turnover of your from 1990-1997 fiscal year up to

ten million?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 30 60

No 20 40

TOTAL 50 100%

Source: Field survey, 2013

The table above shows that 60% of the responds strongly say yes

while 40% says No. This shows that the company from 1990-97 have

made up to ten million.

Table 4.1.8. Do you operate computerized information system?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 45 90

No 5 10

TOTAL 50 100%

Source: Field survey, 2013.

 57

Table 4.1.8 above shows 90% as the number of people who answer

yes while 10% answer no. This shows that the company strongly

operate computerized information.

Table 4.1.9 : Is your turnover higher now that you use computer

than when you use manual system?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 36 72

No 14 28

TOTAL 50 100%

Source: Field survey, 2013.

The table above clearly show that then number of responds for yes is

72% while that of on is 28%. That is, the turnover the company is

now higher now that it is using computer system than when it was

using manual system.

 58

Table 4.1.10 Are your computers very expensive to maintain ?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 11 22

No 39 78

TOTAL 50 100%

Source: Field survey, 2013

The table shows 22% as percentage of responds to the question of

yes while 78% responds to the question of No. From this table, it

shows that the computers are not expensive to maintain in the

organization.
 59

Table 4.1.11 : If yes, what is the maintenance cost of your system

yearly?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

50,000 10 20

30,000 10 20

20,000 30 60

TOTAL 50 100%

Source: Field survey, 2013.

20% of the respond to 50,000, 20% also to the question of 30,000

and 60% responded to that of 20,000, in this table, we see that the

company spend not less than 20,000 or not to more than 20,000 a

year for the maintenance of the computers.

 60

Table 4.1.12: Is the usage of computers advantageous to your

company?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 32 64

No 18 36

TOTAL 50 100%

Source: Field survey; 2013

The table above shows from the responds that the usage of

computer system is advantageous to the company, where 64% is for

yes while 36% is for No.

 61

Table 4.1.14: If yes, what is a he advantage of using computers in

your company?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 28 56

No 22 44

TOTAL 50 100%

Source: Field survey, 2013.

The table above shows that there are many advantages of the

company using computer system. From the table we see that 56% of

the people answer that there is so many advantages of using

computer system in the company while 445 answer No.

 62

TESTING OF HYPOTHESIS

In testing of hypothesis the chi-square (x2) was used

X2 = (FO – FE)2
Fe

Where: x2 = calculated value of chi-square

= Summation

Fo = observed frequency

Fe – Expected frequency

The result is reported below:

The expected frequency is calculated using; = Row total + column

Grand total

Hypothesis 1

Ho: The application of cost benefit analysis techniques has no

advantage on computerized accounting system of coca-kola bottling

limited, Enugu.

Hi: The application of cost benefit, analysis have advantage on coca-

kola bottling or limited , Enugu.

 63

This hypothesis was verified by analyzing the number II, I the

usage of computers advantageous in your company?

Table 4.1.14

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 32 64

No 18 36

TOTAL 50 100%

Source: Field survey, 2013.

Options Fo Fe Fo-fe (Fo-Fe)2 (Fo-Fe2)/fe

Yes 32 25 7 49 1.9

No 18 25 -7 49 1.9

Total 50 - - - 3.8
 64

Fe = 50

2 = 25

Fe calculated = 3.8

When x2 calculated is > x2 tabulated reject Ho level of significance =

0.05 or 5%

Df = Degree of freedom = 2 – 1 = 1

X2 tabulated 3.84

Decision Rule:

When x2 calculated is greater than x2 tabulated, accept the null

hypothesis, Ho and reject Hi. If x2 calculated is less than x2

tabulated. Since x2 calculated 3.8 the null hypothesis, Ho is ejected

and the alternative hypothesis Hi is accepted. The implication of this

is that the advantage of computers on coca – kola bottling limited is

advantageous.
 65

HYPOTHESIS 2

Ho: There is no advantage, advantage of suing computers in the

coca-kola bottling limited, Enugu.

Hi; there is the advantage of using computers in coca-kola bottling

limited, Enugu.

This hypothesis was verified by analyzing the question 12 in the

research questionnaire.

Table 4.1.13 If yes what is the advantages of using computers in

your company?

OPTION NUMBER OF RESPONDENT PERCENTAGE

OF
RESPONDENT

Yes 28 56

No 22 44

TOTAL 50 100

Source: Field survey, 2013

 66

Table 4.1.14

Option Fo Fe Fo-Fe (Fo-Fe)2 (FO-Fe)2/fe

Yes 28 25 3 9 0.3

No 22 25 -3 9 0.3

TOTAL 50 - - - 0.6

Fe = 50

2 = 25

X2 calculated 0.6

When x2 calculated is >x2 tabulated, reject Ho which is the null

hypothesis

Level of significance = 5% or 0.05

Df = Degree of freedom = 2-1 = 1

X2 = Tabulated 3.84
 67

Decision Rule:

Since X2 calculated is 0.6 and is less than x2 tabulated. We reject the

null hypothesis and accept the alternative hypothesis which is Hi.

That is, there is the advantage of using computers in coca-cola

bottling limited, Enugu.

 68

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 SUMMARY OF FINDINGS

The findings of this study have some important education

implications.

 Computerization of coca-cola bottling company Enugu has led

to reduction in labour costs. This is as a result of both the

reduction of number of clerical staff as well as the elimination

of overtime costs previously associated with clerical and

routine information tasks.

 The use of computer consultancy firm by the company its

computerization scheme led to costs savings due to the expert

advice systems design on type of hard-ware, soft-ware and

peripherals needed as well as maintenance and training.

 The management is therefore satisfied with the result of the

computerization drive. There is consensus that both tangible

 69

and intangible benefits of highly significant is equally optimistic

that by the time the company is fully computerized, the

benefits will be so obvious that they cannot be faulted.

 The introduction of computers did both undermine workers

morale.

5.2 CONCLUSION

The main thrust of this study has been to x –ray extent to which a

computerized accounting system can be justified by a cost benefit

analysis. A attempt was made to quality all the relevant parameters

in order to come to an objective concluding. It must not be for gotten

that several applications such as in the areas of being budgeting,

working capital management, variance analysis as well as business

forecasting are yet to be introduce.

These applications when fully implemented will no doubt increase the

quantifiable benefits of computerized accounting system.

However, in the final analysis, the researcher from all interviews as

well as material gathered has been able to come to the conclusion

 70

that the quantifiable benefits of computerization is subsumed by the

intangible benefits is such that to some, increase, efficiency and

accuracy of data processing which are unquantifiable , far out

weights the costs of acquiring the system.

With such as outlook, therefore, it is hardly surprising that the

researcher has been able to conclude that the careful

computerization programme of the company has been a systematic

approach that involved using of consultants the determination of data

processing needs and thus the acquisition of the right type of

computer hardware. The acquisition of sufficient knowledge through

both outside as well as in house, and the gradual and phased method

of implementation which ensures that each application is thoroughly

implemented and understood before moving on the other, has to

ensure that the benefits of the computerization programme of the

company far out weight the costs.

Consequently, and with reference to the objectives of the study as

enumerated in chapter 1, it can be concluded that using the study

as a feasibility guide – line, computerization of any firm with a

 71

moderate level of data processing requirements is cost beneficial

provided, that the steps of adequate planning, reliance on experts

advice as well as careful and phased implementation is pursued as

well the case in coca-kola bottling company Enugu.

5.3 RECOMMENDATIONS

In the light of the findings the discussion and the relevant

conclusions on the research work, the following recommendations

are therefore put forward.

 The data processing department should be a full division

alongside the finance i.e. clinical, marketing and personnel

department is order to enable it relate as equals with these

departments and be able to ascertain their various data

processing needs without bias to any particular department.

 The company should continue to use the computer

consultants since it has been seen that their quality of

advice is good and has steered the company in the right

 72

direction in terms of costs savings and better quality

information at greater speed and accuracy.

 The company should continue to motivate its personnel form

more about the use of computers i.e. they should be enable

to undergo courses in computer literacy to enable them to fit

into the company. In not shell, the company should have a

policy of in service – Training of its staff in computer

education.

 It bottling company Enugu computerize more functions, the

cost per unit of work done well come down that is if the

system will be 100 percent utilized the company should look

into the modalities and advantages of computerizing its

budgetary control as well a cash and workings capital

management systems.

 The need for this is avoidable owing to the apparent lack of

adequate knowledge of the pattern of production as it links

the control mechanism. In budgeting with management of

the working capital available.

 73

This current trend, it has been perceived, has led to a situation where

there is hazard management of working capital. At times, owing to

poor planning, the company finds itself having to take large

overdrafts to meet commitments while at other times their surplus

cash for immediate commitments without any plan as to investing

such idle cash in short term securities or demand deposits.

With the present trend of high interest rates, the ability of a company

to ignore adequate working capital management practices without

repercussion can be said to be well-nigh impossible. Bottling

company is therefore expected to institute an integrated computer

system which will help it to better control its working capital. The

proposed system should use information gathered from the various

department such as stores, production, personnel, marketing as well

as accounting department will in addition furnish such information

as to probable sales figures at various times.

The information in its entirely will then be used to procedure cash

budgets that will enable coca-cola bottling company Enugu to fore

cost its cash requirement accurately, the use of computer will

 74

enhance the accuracy of these forecast because any changes in the

aforementioned variables will be reflected fed into the computer

programmes model for the forecast immediately as ascertained.

Other areas of computerization as business forecasting and variance

analysis should be speedily implemented because these will help to

make the utilization of the computer system optimal as well as

reducing the cost of the company.

 75

BIBLOGRAPHY

Adesina, O. (1985). ”Computer-Choosing the Right System”. London:

Longman.

Amanze, E. (1991). Welcome to Computer Science with the Basic

Programming Language. Enugu: ACENA Publishers.
David, K. M. (1992). Management Information Systems. Mc Graw-
Hill Publishers.

Gartside, L. (1986). Modern Business Administration. Hong Kong:

Pitmans Publisher.

John, E., & Frank, D. (1983). Introduction to Modern Business New

York. Double Day and Co.
Kenu, O. & Majekodunnmi, O. (1990). Meeting the Challenges of
Computer Age in Accounting the Graduate Accountant. A
Journal of Accountants H (3)50-52.

Larry, C. (1979). Computers and Common Sense. New York: U.S.A

Leslie, R. W., Lioyd, B., & Byars, l. (1984). Management Concepts

and Practices. U.S.A Pitmans Publishers.
Mondy, H. (1978). Systems Research. Hong Kong: Pitmans
Publishers.

Musleman, D., & Hughes, G. (1980). Studies in Accountancy. Texts

and Readings, London, PP.30-34.

Nancy, F. (1972). The Effective USA of Computers in Business. Mc

Graw- Hill.

Churchil, O. (1991). Second Semester Handout on Business Finance.

I.M.T, Enugu.

Losty, P. A. (1969). When Does a Headache Become a Disaster.

London: Longman.
 76

APPENDIX I

DEPARTMENT OF ACCOUNTANCY

CARITAS UNIVERSITY,

EMENE, ENUGU.

21 JULY, 2013.

Sir/Madam

RESEARCH QUESTIONNAIRE

I am Igbaji Cecilia, O. a student of Caritas University, Enugu.

Department of Accountancy. I am carrying out a research on “the

challenges of cost benefits analysis, computerized accounting system

“a compulsory requirement for the award of B sc. in Accounting.

I therefore solicit for your assistance in making my work a

success. Your response will be treated with utmost confidentiality.

Yours Faithfully

Igbaji Cecilia, O.
 77

APPENDIX II

INSTRUCTION: Please tick (√) in only one appropriate choice box:

1. Was your company established before the Nigerian civil war?

Yes [ ] No [ ]

2. If yes, is your company to 35-years of existence?

Yes [ ] No [ ]

3. Has your company an organizational chart?

Yes [ ] No [ ]

4. Your staff strength is made up at?

a) senior staff 12, 10, 8

b) Intermediate 25, 15, 10

c) Junior staff 30, 50, 80

5. What is the Annual operating cost of computer system in

bottling company Enugu?

 78

6. Is the turnover of your company from 1990=1997 fiscal year up

to term million?

7. Do you operate computerized information system?

Yes [ ] No [ ]

8. Is your turnover higher now that you use computer than when

you use manual accounting system? Yes [ ] No [ ]

9. If yes, do the high cost of computer yield a good return, that

justices the high cost of procurement and installation?

Yes [ ] No [ ]

10. Are all the departments in your company computerized?

Yes [ ] No [ ]

11. Are you aware of other companies that are computerized?

Yes [ ] No [ ]

12. If yes, what are the names of the establishments? …………….

13. Are you using the most modern computers

 79

Yes [ ] No [ ]

14. If yes, what are the names of your computers? …………………….

15. Are your computers very expensive to maintain?

Yes [ ] No [ ]

16. If yes, what is the maintenance cost of your computers yearly?

…………………………………………………………………………………………

17. Is the life span of your computers up to 10 years? Yes [ ]

No [ ]

18. If no, what do you think is the life span of your computers?

………………………………………………………………………………….

19. Has the introduction of computers led to the retrenchment of

workers in your company? Yes [ ] No [ ]

20. Has the introduction of computers led to the increased

personnel and attendant cost? Yes [ ] No [ ]

21. Is the usage of computers advantageous to your company?

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Yes [ ] No [ ]

22. If yes, what are the advantages of using computers in your

company?........................................................................

23. Do you think that your computer capacity is effectively and

efficiently utilized? Yes [ ] No [ ]

24. Were computer consulting firms consulted before your

company embarked on computerization and is your company

satisfied with the level of advice they gave prior to your

company being computerized? Yes [ ] No [ ]

25. Has there been cases of fraud in your company as a result of

computers being used in your office? Yes [ ] No [ ]

26. Do you notice regular breakdown of your computers?

Yes [ ] No [ ]

27. If yes, is the rectification cost worthwhile? Yes [ ] No [ ]

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28. Has the introduction of computers affected labour relationship

in your company? Yes [ ] No [ ]

29. Is computerization relevant to your company and to the

economic life of the country? Yes [ ] No [ ]

30. Has computerized accounting any adv antage over the manual

accounting? Yes [ ] No [ ]