ACCOUNTING INFORMATION SYSTEM AND DECISION MAKING: A CASE STUDY OF BIDCO MANUFACTURING COMPANY IN JINJA UGANDA

ABSTRACT

The purpose of the study is to examine the impact of the accounting information system on decision-making in Bidco manufacturing company in Jinja Uganda. The objectives were to determine the effect of transaction processing systems on decision making in Bidco manufacturing organizations, secondly to establish the relationship between information systems on decision making in Bidco manufacturing organizations, and to determine the effect of decision support systems on decision making in Bidco manufacturing organizations. The data was collected from 40 respondents were data was collected from respondents using closed-ended questionnaires that were returned. The data collected reveal that the accounting information system has a high bearing on decision making with all the constructs presenting a 0.000 level of significance.

The first objective was accomplished when it was found that transaction processing systems have a significant impact on decision-making in organizations. This means that if they are properly utilized, there is a likelihood that there is going to be some improvement in the manner in which costs are managed in these financial institutions.The second objective was fulfilled where it was determined that management information systems have a significant effect on decision making. It was found that the organizations did not use these systems as much thereby resulting in them losing out on decision making,The final objective of the study was also examined as it undertook to investigate the role played by decision support systems in ensuring that organization remains good in decision making. Just like with the other objectives, decision support systems were found to be underutilized. They were also found to relevantly affect decision making.

The study recommend that there is need to improve the state and functioning of transaction processing tools by management through providing funding to the systems in order to improve its functionality for cost management effectiveness in the organizations. It was found that the organizations did not use these systems as much thereby resulting in them losing out on decision making.