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Chapter 1

PROBLEM AND ITS SETTING

Rationale

In today’s business environment, establishments in every segment are under

pressure to do more with less. That means businesses cannot afford to waste

opportunities to free up their working capital. By providing them greater accessibility

to the cash fixed on your balance sheet, a formal working capital strategy can deliver

the added liquidity they need to account development, rationalize procedures,

reduce costs, improve service stages and seize new investment opportunities as

they arise.

Recent businesses presents itself as a highly competitive and aggressive

environment. One of the ways to overcome competitors, be profitable and

sustainable is to optimize company’s internal operations. One of the most important

internal activities tend to be supervising billing, which consist of accounts payable,

(Schaeffer, 2004).

Bragg (2013) states that accounts payable as a core part of invoicing

processing has always been highly influential on company’s workflow, operational

sustainability as well as profitability. Importance of efficient accounts payable has

increased significantly nowadays due to rise of competition, operational velocity and

size.

From the site presented of HTMW (2013), managing your payables are

important aside from being a vital working capital account, effective payable

management can enhance a company’s short-term cash flow position through the

design of optimal timing of payments. However, important considerations should be

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given to excessive financing, as that has a direct impact on the credit risk of the

company and its short-term liquidity.

On the other hand, capitalizing on opportunity requires a cultural shift.

Prioritizing working capital allows companies to make strategic investments, which in

turn drive operational efficiencies. Conversely, not having enough operating liquidity

because assets are tied up in things like unpaid accounts can have a huge effect on

cash flow. Effort to improve working capital should be considered as to not increase

the risk of collection and other factors such as setting a strict payment terms that

customers abscond to other suppliers. (Huckabee, 2018).

Meanwhile, in the report of Euromonitor International (2018), consumer

appliances in the Philippines are benefiting from rising income levels as a result of

economic growth, in addition to the growing economic confidence and widening

availability of easy-access consumer credit. As published by Philippine Daily Inquirer

(2013), the rising affluence of consumers in Southeast Asian emerging markets like

the Philippines continued to boost sales of major domestic appliances (MDAs),

according to research firm GfK Asia.

Locally, Tagum City is one of the hubs for appliance center business. Every

year, customers come and go to purchased appliances either in cash or on account.

Like any other line of business, proper credit management is a must for these

business in order for them to have sufficient resources to pay their liabilities as well

as to have adequate working capital for their business.

In line with this, conducting a qualitative inquiry with regards to the

governance of accounts payable and the effects to their working capital culture of

appliance centers in Tagum City can provide another mechanism and control as to

how to manage accounts payables to have a better working capital culture.

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Research Objectives

The main purpose of this study was to formulate a better understanding with

regards to accounts payable governance of business centers located in Tagum City

and how this affects the working capital culture of the business.

Furthermore, it seeks to address the following objectives:

1. To assess the level of governance to accounts payable in terms of:

1.1 Invoices;

1.2 Master Vendor Files

1.3 Purchase Orders

2. To assess the level of working capital culture in terms of:

2.1 Accounts Receivable

2.2 Inventory

2.3 Cash Holdings

2.4 Account Payables

3. To determine if there is a significant relationship in the level of governance to

accounts payable and the business’ working capital culture.

4. To formulate a better understanding with regards to accounts payable

governance based on the findings of the study.

Hypothesis

The hypothesis of the study was tested at 0.05 level of significance stating

that:

1. There is no significant relationship between accounts payable governance

and working capital culture.

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2. There is no domain in the accounts payable governance that significantly

influenced the working capital culture among appliance centers staffs

situated in Tagum City.

Review of Related Literature

This section provides several studies or theories from different authors that

support the significance of governing accounts payable and working capital culture.

Governing Accounts Payable

Accounts payable controls are used to mitigate the risk of losses in the

payables function. Payables controls are aggregated into three general categories,

which are verifying the obligation of the business to pay, entering the payables data

into the computer system, and paying suppliers.

According to Benjamin (2013), no what matter what size the business is,

paying bills will always be part of it, whether it’s the occasional order to pay for or a

fully staffed accounts payable department managing thousands of invoices. By

implementing best business practices you can streamline your accounts payable

process and be prepared for future growth. Simplifying the accounts payable process

can help the business empower the staffs’ decisions because it will make their work

easier and are not dangerous for them to make. The decision to make partial

payments on larger balances, or delaying payments to vendors who have a higher

tolerance on due dates are a couple of examples. It will also reduce the number of

check runs.
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Moreover, making sure your accounts payable module is set up correctly so

that transactions flow properly. You may need to use a consultant to make sure your

accounting software and accounts payable module are correctly configured, or you

could cause more problems than you solve. Lastly, have accounts payable staff

enter terms for each vendor in which the system can default to, such as Net 30, Net

60, etc. Terms are often provided by the vendor, and are usually printed on the face

of their invoice (Dan, 2017).

As cited at HTMW (2013), account payables management refers to the set of

policies, procedures, and practices employed by a company with respect to

managing its trade credit purchases. In summary, they consist of seeking trade credit

lines, acquiring favourable terms of purchase, and managing the flow and timing of

purchases so as to efficiently control the company’s working capital. The account

payables of a company can be found in the short-term liabilities section of its balance

sheet, and they mostly consist of the short-term financings of inventory purchases,

accrued expenses, and other critical short-term operations. In addition, Accounts

payable are one of 3 main components of working capital, along with receivables

and inventory.

Understanding how these three accounts interact among each other and the

resulting effects on working capital levels, cash flow, and the operating cycle can

help in managing and evaluating payables management. An appropriate balance

made by Lawton (2017), according to him, there must be struck, whereby the

advantage of deferring cash outlays using trade credit is weighted against the risk of

excessive short-term credit. It is therefore important to maintain optimal utilization of

credit lines and timing of payments, and create a balance between the need for
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cash, working capital, and liquidity. A number of metrics and short-term financial

ratios can be used to evaluate the performance payables management.

Companies that would like to optimize account payable invoice handling, such

as the case company BoXshipping, should make an effort to use the most suitable

invoice management practices. In order to achieve it, company has to examine

current techniques in use and compare them to the best practices known. It should

be considered that some practices may work perfectly in theory, though demand too

much of time and resources for implementation in reality. Finding balance between

new practices implantation, their real-life efficiency and costs should be a priority for

company’s management (Schaeffer. 2007). Management should study possible

advantages and disadvantages of new practices implementation. Any invoice

handling technique could be beneficial for a company only in case if it is

implemented correctly (Schaeffer. 2007). The main purpose of this thesis is to

provide adequate possible optimization plan of invoice handling. Thereby all

suggestions should be introduced only after it is proved that company is ready to

implement them in a right way, thus the chances of failure are low.

Meanwhile, Margaretha, F. (2016) stressed that businesses in many

industries have begun to introduce trade spend initiatives as a way to strengthen

partnerships between suppliers and retailers. Under these agreements, suppliers

grant price concessions, rebates or marketing/advertising dollars in exchange for

preferential product placing at the retail level. In entering these partnerships, it is

essential not to leave accounts payable behind. To get the full benefits of a supplier

relations initiative, businesses must accurately track contract terms, communicate

information about any special arrangements to staff and maintain management focus
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on working capital. The risk is that dollars negotiated by your purchasing team are

lost through an inability to track the terms (Faris, 2011).

Also, Rego (2015) supported that one of the first steps towards implementing

a robust accounts payable system involves setting up preferred supplier lists to

prevent maverick buying and position your organization to negotiate the most

favourable buying terms. As an example, part of the vendor selection process, there

are several steps you can take to negotiate terms designed to optimize your working

capital. Once you have negotiated terms with vendors, it is essential to properly

capture and maintain this data. Inaccurate entry of this data can result in more than

payment errors. It can also lead to account delinquencies which prevent you from

taking advantage of available discounts and may even lead to disruptions in supply.

To avoid these outcomes regularly seek opportunities to negotiate better pricing as

well. Strategies might include asking vendors to match lower prices offered to your

competitors or negotiating for volume discounts before you can actively manage

payables, you need assurance that your accounting reports are up-to-date and that

your financial records fairly reflect current accounts payable balances (Wang & Dan,

2017).

Without this data, many businesses lack visibility into how much, how often

and when they pay their suppliers. This can hamper you from choosing the most

advantageous payment terms or selecting appropriate timing in which to pay

vendors. Moreover, Feng (2015) supported that in order to bolster your accounting

and reporting process, you need to: validate supplier invoices against contract terms

and their associated POs to ensure billing accuracy; improve real-time reporting

capabilities by automating reconciliations and ensuring they remain current; follow up

on and resolve and reconciled items on a timely basis; have the same individuals
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prepare and review all reconciliations to reduce the likelihood of overpayment or

duplicate payments; post journal entries before reporting period cut-off dates; apply

payments to each invoice on the date they’re made to maintain system accuracy;

properly track all payments made, not just vendor payments; and select a method of

payment (i.e. cheque, EFT, credit card) that minimizes bank charges improving

accounts payable governance, setting up clear management processes and

consistently tracking key metrics, businesses can streamline their processes and

inject a working capital culture into the enterprise. Approached effectively, this can

strengthen corporate cost management, reduce process complexity, minimize the

risks associated with routine transaction processing and enhance vendor contract

compliance (Taiwen et.al, 2015).

Also, businesses that invest in EDI technology or improve existing electronic

processes can further benefit by empowering fewer resources to manage the

accounts payable process while simultaneously increasing processing accuracy,

accelerating invoice processing and optimizing payment timing to take advantage of

available discounts. With proper executive-level support, these steps can help you

do more than simply maintain operating margins. They also support greater liquidity,

which can lead to stronger bottom line performance (Moore, 2015).Some businesses

work with hundreds, and even thousands, of suppliers. Even if your environment is

more streamlined, it can be challenging to keep track of all the invoices you receive

and reconcile each invoice to its associated PO (Karadag, 2016).

Moreover, failure to accurately manage payables, however, makes it harder to

forecast and manage cash flows and anticipate short-term liquidity needs, putting

many businesses on an unnecessary cash flow tightrope. Lax procurement

standards can also place the business at risk of over-spending or trading with
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unapproved suppliers. Warrad (2015) discussed some ways on how to prevent

buying or purchase control over-rides, here are some ways to consider: [a] Maximize

your savings potential by exploring the viability of any available early payment

discounts, volume rebates or trade spend initiatives, but keep in mind that you don’t

need to accept all early payment discounts. If you don’t have the cash on hand or the

capital outlay exceeds the benefit of the discount offered, it may make sense to pay

later, [b] Track payables outstanding by vendor and by payment terms, [c] Set clear

accounts payable metrics (such as frequency of invoices that match POs,

percentage of invoices paid to terms and percentage of negotiated discounts

captured) and adhere to them across the organization.

Shaista (2015) also stressed that If you have a set of best practices in

accounts payable management and you follow them, accounts payable can have

quite a positive impact on your company's profitability. First, the company has to pay

its bills on time. A simple best practice, but nothing else will work if you don't do this.

Second, if you pay your bills on time, you can elicit trust between you and your

suppliers, regardless of how many suppliers you have. If you have trust, your

suppliers will try to help you in a number of ways discussed above, including offering

you discounts which will positively impact your profitability in a big way. Third, a best

practice is to try to facilitate processing of your accounts payable with a minimum of

staff and paperwork. You don't need several accounts, payable clerks. Smooth out

your accounts payable management, and you will increase your profitability by

decreasing personnel and time spent on paperwork (Wasiuzzman, 2014).

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Significance of Working Capital

Given this complexity, sustainably running the business with less working

capital requires a new way of working. The analytical tool kit of the finance function is

only part of the answer; the methods of organizational transformation are just as

important. In the experiences of Michael Birshan and Matt Stone (2016), nurturing

awareness and conviction, reinforcing mind-sets and behaviours with formal

mechanisms, and deploying the right talent and skills can return on that effort which

can be surprisingly high, reducing the amount of cash needed to run a business by

20 to 30 percent—often considerably more. One natural-resources company, for

example, recently reduced its working capital by more than 40 percent in the space

of a year. That was worth almost $1.5 billion, three times its initial target. The effort

to improve working capital should be mindful of not tipping over into increasing risks

to quality, fulfilment, or speed, such as by cutting inventory so low that it impinges on

operations or setting such strict payment terms that customers flee to other

suppliers. Yet the reality is that in modern corporations there are buffers at every

level; hyper conservatism often reigns. Companies that can achieve the right

balance of attention to detail and operating discipline can demonstrate a broader and

stronger stewardship over their business (Birshan and Park, 2016).

One of the most significant components of a company’s overall capital base is

working capital – often accounting for over 30 per cent of invested capital. Efficient

management of operating working capital (i.e. receivables, payables and inventory)

has many benefits including improved free cash flow and greater capital efficiency

(Stone, 2016). In many companies the potential capital release can represent an

increase in ROIC of 1-3 per cent. Other direct advantages of improved working

capital are reductions in debt levels for leveraged companies – leading to potential
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improvements in borrowing headroom, credit ratings and the cost of borrowing and

improved cash flow forecasting. A more cost effective means of funding organic

growth, future acquisitions, share buy-backs and dividends; It is no accident that high

growth, value accretive organisations typically apply significant focus on sustainable

working capital improvement – particularly, if they are highly leveraged (Azeem,

2015).

On face value the fundamentals of improving working capital are reasonably

straightforward: Collect cash from customers as soon as possible, avoiding bad

debts; keep as little inventory as practically possible to meet orders; and agree

longer payment terms with suppliers – without counteractive price increases or

damaging relationships (Gama, 2017). However, all of this is common sense, but

deceptively difficult to achieve due to the level of complexity involved, particularly for

large, global businesses with sophisticated supply chains. Working capital touches

nearly every part of a business, combining the physical and financials supply chains.

This brings together many internal processes and stakeholders – with very different

(and often conflicting) outlooks, priorities and objectives (Pais, 2014).

Westerman, W. (2015) also emphasized that the first step is to accept that a

clear focus on sales, profits and liquidity are all crucial and it is usually just the

balance that needs to be adjusted. In certain sectors (e.g. media and professional

services) this is often harder to achieve in the short term given the way senior

management have been incentivised traditionally. In times of on-going market

volatility and uncertain trading conditions, few treasurers would question the value of

additional cash flow and the insulating effect it delivers. Working capital is often a

sizeable component of a company’s overall capital base and sustainable reductions

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can yield significant improvements in cash flow and ROIC – in turn driving future

growth and higher valuations (Singhania, 2014).

Given the large number of people who need to buy into a program to improve

working capital, Graham (2016) found that defining working-capital improvements

with respect to being great at one’s job, or achieving functional excellence, is more

personal and persuasive. For example, the executives of a major manufacturing

company would talk about “running a tight shop” as the focus of their working-capital

program—with a happy by-product of more cash and stronger shareholder returns.

Cash conversion, then, became an indication of operating discipline: how well the

company manages suppliers and customers, cycle-time speed, and even things

such as sending out invoices on time. And in practice, any improvement goes both

ways. The behaviours that support better working-capital management, such as

analysing oft-ignored data sets, can also help improve performance overall (Tobin,

2014).

However, Monica & Navendu (2014) stressed that as with any

transformational improvement, changing a company’s culture around working capital

requires strong CEO support and involvement, only the CEO has the clout to set the

vision, assign accountabilities, and get different functions running in the same

direction. In one recent working-capital transformation, a CEO personally announced

performance targets, made it clear to his executive team that their careers depended

on delivery, and consistently talked about the importance of working capital in

communications to employees. That doesn’t mean a CEO needs to run the entire

program; many will instead delegate day-to-day oversight to another executive. At

one global industrial company, for example, the chief executive appointed a

business-unit CFO to oversee the program as the group wide “cash leader”—though
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the CEO continued to reinforce the program’s importance in all his internal

communications (Jeff, 2015).

Correlation:
Working capital policy is a set of decisions on the level of investment and

sources of financing current assets and liabilities (Kadumi & Ramada, 2012). To

reduce the cash converting cycle and maximize firm profitability, owners and

managers must formulate and implement appropriate WCP (Nyabuti & Alala, 2014).

Several researchers reported a significant relationship between working

capital and governing the firm profitability or accounts, firms may finance their

working capital through either short-term or long-term debt (Bei & Wijewardana,

2012); also firms may adopt either an aggressive or conservative working capital

depending on the nature of their internal operations, cash flow volatility, and external

market conditions (Kadumi & Ramdan, 2012).

Supporting the findings of Weinraub and Visscher (1998), Al-Shubiri (2016)

suggested that companies should match their aggressive working capital policy with

a conservative governance of accounts payable. Bei and Wijewardana (2014)

investigated the WCP of 155 Sri Lankan companies from 2002 to 2006 using

multiple regression analysis. Bei and Wijewardana found that different types of

working capital had various levels of impacts on firm profitability depending on the

timing of the decision and volatility of cash flows. Bei and Wijewardana stated that

high risk-taking (aggressive) owners and managers made a minimum investment in

current assets.

Also, Ademiola and Kesumola (2014) found a positive and significant

relationship between WCP and firm performance. In contrast, Al-Mwalla (2012)

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found a negative and significant association between aggressive WCP and

profitability, showing that excessive reliance on short-term debt may lead to liquidity

problems. Kadumi and Ramadan (2012) supported Al-Mwalla (2012) by stating that

excessive use of short-term obligations may overstretch working capital on the

negative side. In support of these arguments, Toby (2014) warned that the wrong

timing coupled with a constrained liquidity position could lead to insolvency and loss

of profitability. Onwumere et al. (2014) argued that the adverse impacts of an

aggressive WCP increase as the firm's current assets deteriorate over time.

These results show that firms in different industries and markets may have

different working capital policies. Cash flow volatility and industry and market

uncertainties affect the choice of working capital. Small business leaders or great

must, therefore, have clear understanding of the characteristics of their market, cash

flows, and internal operational requirements (Kadumi & Ramada, 2015). Although

the conditions for adopting a specific working capital into governing the accounts

payable is open to a new ideas, the review of the literature showed empirical

evidence of the relationship between working capital and profitability.

Theoretical Framework

This study is anchored based on the theory of Bryk, Lee, Thibault, and

Stewien (2016) where they emphasized that by improving accounts payable

governance, business can streamline to their processes and inject a working capital

culture into the enterprise. Approached effectively, this can strengthen corporate cost

management, reduce process complexity, minimize the risk associated with routine

transaction processing and enhance vendor contract compliance.

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The main theory is supported also by Mary S. Schaeffer where she stressed

that effective working capital management assists firm in achieving improved liquidity

through the management of the components of the receivables, inventory, and

payables. Approached effectively, this can strengthen corporate cost management,

reduce process complexity, minimize the risk associated with routine transaction

processing and enhance vendor contract compliance. Unfortunately, this approach is

not always the right one. In some cases, delaying payment can erode supplier

goodwill, resulting in slower delivery times, less willingness to fix defects, slower

responses to queries and more onerous payment terms. On the flip side, paying

early can sometimes yield substantial benefits in situations where suppliers offer

discounts or rebates for early payment (Lee, 2016).

To effectively identify these opportunities and determine the right course of

action when facing potentially conflicting outcomes, businesses should take a more

strategic approach to accounts payable. The Accounts Payable team, along with the

Purchasing and/or Procurement departments, must collaborate with senior

management to inject a working capital culture throughout the company. This is

about more than ensuring invoices are received and processed in a timely fashion.

It’s about adopting a management focus that emphasizes the importance of

optimizing payables and freeing up working capital to fuel growth.

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Conceptual Framework

Figure 1 shows the paradigm of the study. The independent variable which is

the governance over accounts payable is indicated by the following: Invoices, Master

Vendor Files, Purchasing Orders, and Receiving Documents. Meanwhile, the

dependent variable is indicated by Account Receivable, Inventory, Cash Holdings,

and Accounts Payables. In governing accounts payable, it is necessary to monitor

also the invoices. The invoices of a certain firm determines the performance of

accounts payable and measure the number of processed in a given period of time.

Also, proper control and maintenance of the master vendor file can minimize many

problems in accounts payable. Receiving documents verified the information before

the payment is made. Purchase Orders show the relating purchases and so the

special terms negotiated between the buyer and supplier. On the other hand,

accounts receivables will increase if the firm or company will deliver more goods, or

if there are more orders from the buyers. The level of a firm’s inventory at any point

in time therefore reflects the total value of goods kept by the firm as measured by the

good’s appropriate cost. Cash holdings function as the firm’s activity level,

administrative efficiency, and production and cost structure. And, account payables

increases every time the firm receives a new shipment of goods and decrease every

time it makes corresponding payment.

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Independent Variable Dependent Variable

ACCOUNTS PAYABLE WORKING CAPITAL

GOVERNANCE: CULTURE:

 Invoices  Accounts Receivable

 Master Vendor Files  Inventory

 Purchase Orders
 Cash Holdings
 Receiving Documents

 Accounts Payables

Figure 1. The Conceptual Framework of the Study

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Significance of the Study

The findings of this study may serve as the basis of formulating additional

schemes to manage accounts payable and to ensure positive effects on working

capital especially for those businesses that are practicing instalment basis for

payment. The outcome of the research will serve as an instrument for the faculties of

the department of business administration education to realize its goal of developing

graduates who are globally competitive in their fields of expertise and to support

more the students on their study and to guide them to make them more efficient

inside the institution and to the society. Furthermore, this study will raise awareness

on the importance of proper control over accounts payable in appliance center which

will then benefit the community as the businesses will become more financially

stable. Also, it will help the customers make their credit purchase not a burden to be

paid, since they may employ the appropriate credit term practices. And lastly, to the

future researchers, with a keen eye for learning and ample awareness, they could

create further researches on the existing matter with the use of the information

presented in this research as a reference to promote a more convenient governance

over accounts payable to establish a positive working capital culture.

Definition of Terms

The following terms were defined in terms that will make the readers

understand their usage in the study.

 Accounts Payable Governance refers to the set of policies, procedures, and

practices employed by a company with respect to managing its trade credit

purchases. They consist of seeking trade credit lines, acquiring favorable

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terms of purchase, and managing the flow and timing of purchases so as to

efficiently control the company’s working capital.

 Working Capital Culture is the practice of the company to pay off its short-

term liabilities in a short period of time

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Chapter 2

METHODOLOGY

Presented in this chapter are methods and procedures in gathering the

information needed such as the research design that shows little discussions about

the problem, research subject such as persons and places where was the study

conducted, research instrument, data gathering and the statistical treatment.

Research design

The present study utilized a descriptive-quantitative design. A general term

used when researchers are finding certain answers to its research questions which

cannot be distinguish through validity and connectivity due to an existence of only

one variable which make it uncontrollable and may vary differently the subject

(Prince, 2011).

In the light of the foregoing, this study is a descriptive in nature since it aims to

know the level of accounts payable governance of appliance centers in Tagum City

through its controls and its effects from their working capital. This study mainly

focuses on a single variable and not with the statistical relationship of a two

variables.

Research Locale

The study was conducted in Tagum City regardless of the respondents’ true

addresses. Tagum City is the heart of the Davao del Norte province, it has of 23
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barangays and this is where the provincial building located. Below is the map

location of the said locale.

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In this study population sampling was applied. The respondents are the staffs

of appliance centers in Tagum City. The respondents of the study must be employed

in Tagum regardless of their true addresses.

In this study, population sampling was used. The respondents are from the

different appliance centers in Tagum City. The overall respondents of the study is

150.

Statistical Tool

This study was based on a questionnaire intended to provide answers for

staff’s adherence to accounts payable governance of their business through its

controls using the formulated intervention scheme.

Presented below are the range of ratings that had been applied in the process

of analyzing, interpreting, and giving of implications of the result of the study.

The parameter of limits for the CPAs adherence to CPD through its drivers

are as follows;

Range of Means Description Interpretation

4.30-5.0 Very High This means that staffs

adherence to accounts
payable controls is very
much observed.

3.50-4.20 High This means that staffs

adherence to accounts
payable controls is much
observed.

2.70-3.40 Moderate This means that staffs

adherence to accounts
payable controls is fairly
observed.
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1.90-2.60 Low This means that staffs

adherence to accounts
payable controls is less
observed.
1.0-1.80 Very Low This means that staffs
adherence to accounts
payable controls is never
observed.

Data Collection

In gathering the information needed, the following steps were done by the

researchers:

The researchers created questionnaires about the level of assessment on

accounts payable governance among staffs. After making the questionnaires, it was

given to the adviser for checking and presented to the panel of experts for validation.

Any comments and suggestions given were incorporated for the final revision of the

questionnaire for improvement.

After the questionnaires were validated, researchers reproduced copies as

many as required respondents and now ready to distribute the questionnaires to the

intended respondents. The researchers personally gave the questionnaire and

explained to the respondents the aim of such activity. Or the researchers asked

permission first to the responsible personnel before giving the questionnaire. The

researchers waited until the respondent/s was done answering the question to

ensure a hundred percent retrieval.

And for the results, data were gathered from the questionnaires and shall be

classified, organized and tabulated accordingly. The data gathered were subjected to

the statistician for the statistical treatment of data and for analysis.
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Statistical Tool

The data gathered were tabulated and analyzed using the following statistical

tools.

Mean. This was used to determine the level of assessment on accounts

payable governance among appliance centers.

T-test. This was employed to measure the significant difference of adherence

to accounts payable governance among staffs of appliance centers according to their

line of business.