“Computerized Accounting System: Key on Establishing

an Efficient Decision Making AND Business

Development”

Chellyza C. Hizon

John Peter D. Cortez

Liezel Duay

Mary Rose Mendoza

Renz Marion A. Liwanag

Rica Taruc

College of Business Studies

June 2022

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 Chapter I : Introduction

Accounting is regarded to be the heart of the business, it is also said that it is critical
for the smooth operation of any business. Every firm must maintain track of financial data
related to its operations. It also plays an important role in the success or failure of modern
corporate institutions.

Throughout this phase, technology is used by corporations, enterprises, institutions,

and organizations. Computerized accounting standardizes, consolidates, and optimizes all
company activities in a cost-effective and effective manner. Computers are used by
organizations specifically to make jobs convenient to accomplish, and thus to produce
increasingly high levels of reliability. The usage of a computerized accounting system (CAS)
is very popular in different enterprises. A computerized accounting system's goal is to
streamline the accounting process. All corporate functions should be connected, including
sales, finance, and procurement. In addition, it can handle massive volumes of data without
slowing down or compromising the transaction's efficiency.

Accounting data is important not just for evaluating the past and maintaining the
current on track, but also for preparing the success of the company. It is an essential element
of the present day to acknowledge the company's precise economic state and use that as a
basis for making any decisions. Because business strategies have a protracted impact on the
firm, it's critical to study accounting data when making critical decisions. Accounting
information assists managers in clarifying their jobs and minimizing uncertainty before
making choices (Chong, 1996). Accounting is sometimes referred to as a means to an end,
with the final result being a choice aided by accounting data. Decision making is the process
through using cognitive functions to choose between possible options. Even if there is no
apparent action to take, establishing a decision is essential. Computerized accounting systems
can help us make better decisions by giving information that is important to the decision and
the decision-making process. Accounting systems also verify for authenticity through the
auditing and accountability processes (Gray et. Al 1996). Accounting information that is
accurate and efficient is critical to strategic decisions.

Technological advances have contributed to the usage of Computerized Accounting

Systems in company reporting to assist in the production of consistent and important
accounting information for both management and external decision-makers (Greuning, 2006).

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Many people believe that computerized accounting information systems in corporate
reporting are the "engine of growth" in businesses due to the obvious numerous benefits they
provide (Frenzel, 2006)

Companies must examine the methods wherein the company individual operates
whether launching a new software system or implementing changes to a traditional network
(Hensley, 2008). People's perceptions of convenience of use are influenced by self-efficacy
and computer fear. Computerization should be simple to use, navigate, and explore; it should
also be visually appealing, accessible, and have links to more thorough information on the
topic at hand (Argawal et al., 2000, Hall, 2001 & Wexler, 2001). As a result, a computerized
accounting system is a computer-based method that integrates financial principles and
methods with the paradigm of an information system to record, process, analyze, and output
financial data for users that can be used in business decision making. (Gelinas and colleagues,
2005)

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Review of Related Literature

Foreign

Accounting

According to Richmell et al. (2016), Accounting plays a critical part in the success or
failure of modern corporate business. Every company must maintain track of the financial
data associated with its operations. It also contains a variety of techniques, some simple and
others complex and difficult. Modern accounting is based on a method devised over 500
years ago by an Italian monk named Luca Pacioli. Even modern accounting concepts are
founded on this amazing scientific method, which was so effectively performed.

In tracking financial information, companies are primarily interested in recording

transactions, maintaining records, conducting audits, reporting and analyzing financial data to
management, and seeking tax advice. As a result, organizations employ systematic processes
to identify, record, measure, classify, validate, summarize, interpret, and communicate
financial information. It shows the profit or loss of a particular time period, and the value and
nature of an organization's assets, liabilities, and capital. Accounting provides information
about the resources available to a company, the funds used to fund those resources, and the
results achieved by their use. Manual accounting systems provide a convenient way to record
commerce and can provide accounting information systems to small business owners. Manual
bookkeeping systems require a deeper understanding of bookkeeping, but understanding the
key concepts of double-entry bookkeeping makes it easier to use.

Computerized Accounting Information System

According to Gofwan (2022), accounting information systems are an important

instrument of power for managers looking to maintain a competitive edge in the period of
rapid advanced technologies, increasing awareness, and demanding demands from customers
and business owners. Using a review of empirical literature approach, this study aims to
assess the impact of accounting information systems on firm financial performance. The
study indicates that the most important impact of information technology on accounting is
business' ability to establish and use computerized systems to monitor and identify financial
transactions in order to facilitate managerial decision making, internal controls, and financial
report reliability. The study concludes that, in order to continue to generate great outcomes

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that can sustain productivity, accounting information systems must remain a focus point in
every business.

According to Lanier (1992), indicated that IT-based accounting systems are well-
structured procedures that use computer systems to collect and record accounting information
These systems also have an impact on decision making because of their ability to collect data,
resulting in decision makers (investors, creditors, and managers) having enough information
to make decisions. Sage, Peachtree, and Pegasus are examples of accounting software used
by these systems.

According to (Dodd, 1992), these systems are Integrated Accounting Systems and
Stand Alone Accounting Systems. An integrated accounting system refers to multiple
systems. Besides that, modules are programs written to perform specific accounting
functions, such as accounting receivable processing, these modules communicate with one
another. (Lanier, 1992).

Computerized Accounting Systems Vs Manual Accounting Systems

According to Marivic (2009), computerized accounting systems enable computers to

record and analyze financial transactions using advanced accounting software. The entire
process of data input, data processing, and data output in the form of reporting is automated
in CAS (Abiahu, 2014). The Manual Accounting Systems or MAS, on the other contrary, is
dependent on human transaction recording and archiving in journals and other primary
accounting books. (Ama, 2004). As a result, the transactions are divided into categories and
entered into the appropriate books. This leads to a large amount of paperwork in MAS, which
makes accessing information a time-consuming task. Additionally, maintaining them is a
difficult task. (Ndubuisi et al, 2017). However, CAS information is readily available at the
press of a button.

Furthermore, in MAS, information placed in books of prime entry may be found in

future ledgers, resulting in transaction repetition, but in CAS, this is not necessary (Ndubuisi
et al, 2017). In MAS, the transaction must be authorized by the required higher authorities
before it can be carried out, however in CAS, some procedures are simply automatic and are
only authorized at a later or specific level (Rezaee and Reinstern 1998).

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 According to Ware (2015), it is simple to back up data in CAS on platforms such as
cloud storage so that if something goes wrong, another copy is available. This is difficult to
achieve in MAS, as data that is destroyed by elements such as fire or water may be lost
forever.

Performance

According to Teru et. al (2017), businesses today operate in a highly competitive and
rapidly changing global business environment, requiring the use of an information system
that can respond quickly to complex business problems. The rapid improvement of
information technology (IT) has benefited businesses in developing and implementing
accounting information systems (AIS), and the qualitative qualities of any accounting
information system that make it effective can be maintained if an internal control system is in
place. There will be assurances of the reliability of financial information processes, control
measures of effectiveness and efficiency of information reliability, effective and improved
operative goals, and improved performance when companies and businesses adjust and
regulate their computerized technique of internal control machinery according to accounting
information system (AIS). As a result, this study focused on the impact of accounting
information systems (AIS) for effective internal control on firm performance, and discovered
that when controls are operated efficiently and effectively, performance improves, accounting
information reliability improves, and decision making for both internal and external users
improves.

According to Ige (2015), the impact of a computerized Accounting Information

System (AIS) on bank performance in Nigeria was studied in this research. The goal of this
report is to analyze the effect of computerized (AIS) on bank operations efficiency, employee
performance, customer satisfaction, service delivery, and barriers to efficient computerized
(AIS) within a Nigerian bank. To accomplish the study's main objective, the researchers used
a survey research design using a stratified sampling method. The study's target population
includes United Bank for African Plc employees and customers. Two sets of questionnaires
were used in the study, one to assess customer happiness, service delivery quality, and bank
operation/performance, and the other to evaluate the impact of information technology
advancements on bank employee performance. Means, Percentile Average, and Chi-Square
were used to analyze the data. About 65 percent of respondents strongly agreed that new
technology benefited bank employee performance when assessing the use of new

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technological innovations and their performance. In addition, 73 percent of all respondents
strongly agreed that the computerized banking system has improved banking operations
greatly (AIS). Internet connectivity, skilled staff, cybercrime, installation and maintenance
costs, and the affordability of technology advancements are all elements that the study
identified as posing difficulties to the efficient deployment of ICT in the banking sector. The
study found that deploying technology innovations enhanced bank operations and employee
productivity, improved service delivery, and improved the banks return on
equity/profitability.

Business Development

According to Teru et. al (2019), the digital revolution in our daily economic, social,
and cultural fields has been brought about by ongoing expansion and improvement in
information technology. Through the use of electronic media, this technological advancement
changed the methods and ways of carrying out tasks within the scope of accounting
transactions and operations. E-accounting is one of the digital applications developed in
response to this challenge. E-accounting is a recent advancement in the world of accounting
that has been used on a global scale. E-accounting refers to electronic accounting that has the
advantages of speed, accuracy, and instant results. In an electronic accounting system, source
documents and accounting records exist in digital form rather than on paper. It helps
companies in keeping their financial data and accounting software safe and secure by
providing authorized users real-time access regardless of their location or computing
platform. This paper discusses the impact of e-accounting in modern company, as well as the
concept of E-accounting, its benefits, and issues. The primary source of data for this paper is
secondary data gathered through a survey of related literature in order to establish a
theoretical framework for the study. Many enterprises fail in business, according to surveys,
not because of poor material quality, a lack of qualified staff, or managerial issues, but rather
because of the accounting methods used by the businesses. As a result, firms must adopt e-
accounting techniques to replace traditional accounting practices.

Local

Computerized Accounting System

According to Javi et al. (2018), computerized accounting systems are important for
decision making because the quality of the information contained in financial reports

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influences the company's decision making. Company stakeholders need high quality
information for the success of the company. High-quality accounting information must meet
four key qualitative characteristics: comprehension, relevance, reliability, and compatibility.
A computerized accounting system assists those involved in the decision-making process
with internal controls, improves the quality of financial reporting and facilitates the
company's financial transactions. Therefore, the CAS must produce relevant output that the
company can trust. In addition, we recommend using CAS as it can improve the performance
of your business at the enterprise level. Intensifying competition in the market has forced
companies to invest in a variety of accounting information systems. This is strongly due to
globalization and innovation. This also enables us to meet the ever-changing needs of our
companies and improve our ongoing operations. Studies show that the main benefits of using
CAS are improved transactions, adaptability to different conditions, and an increased level of
competitiveness.

According to Vitez (2013), manual accounting systems are particularly thorough since
accountants must meticulously enter data into physical books. The manual accounting
system, if properly constructed, can provide timely and accurate information. They can use
this in any industry. It's less complicated to set up and more adaptable than a computerized
accounting system. It does not require energy or a battery, unlike electronic devices. Manual
accounting has the advantages of a relatively inexpensive staff and resources, as well as
reliability, independence from machines, and the availability of qualified employees.
Compared to traditional manual accounting, computerized accounting has numerous
advantages. Computerized accounting is more accurate, easier to use, and less expensive. It is
less prone to human error than the manual version. Computerized accounting is now used in
all types and sizes of enterprises. Anyone considering a career in accounting at any level
should be conversant with its concepts and operations.

As stated by Wang & Huynh (2013), computerized accounting can accurately handle
vast numbers of financial transactions. After processing those financial transactions, the
computerized accounting system may generate all necessary documents and reports
automatically, provide easy access to vital information, and provide the user with a better
view of the daily business operations.

According to Duchac (2009), an accounting system improves the flow of financial

data throughout an organization. This computerized accounting system imports information

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electronically rather than having personnel enter financial transactions into the main ledger.
Internal processes can be set up in an accounting software application by owners and
managers to process information according to specified rules and norms. As a result, instead
of inputting data, accountants can spend more time reporting and analyzing information.
Computerized accounting systems use computers to process enormous amounts of data
quickly, efficiently, and accurately in order to overcome basic obstacles that do not modify
the principle. Many accounting businesses' constraints retain the principle of accounting,
resulting in quality and reliable work.

According to Indira (2008), highlights the importance of financial statements that

should offer financial performance information when the management is discharging its
duties as owners' stewardship responsibility. It should also help managers and directors make
choices on behalf of the owners. The computerized accounting system works in much the
same way as a manual accounting system. Initially, transactions are manually documented on
source papers. The computer analyzes the data and conducts operations including producing
journals, posting to ledger accounts, calculating account balances, and creating financial
statements and other reports.

Decision Making

According to Serrat (2012), decision making is where thoughts and actions intersect.
For this to be beneficial to the organization, the decision must be logically consistent with
what stakeholders know, want, and agree to do nothing. In that case, decision making can
have a greater disadvantage than treating it as a single isolated event rather than a well-
defined process in which it is, or should rather be. The decision-making power is the coin of
the kingdom. In a small organization, an entrepreneur might know all about his or her
business and make every decision with minimal supplementary data and information.
However, as the scale and scope of operations grow, an entrepreneur will find it more
difficult to decide. In a world of large organizations, one solution to this problem is to convey
data and information to whoever possesses decision rights; another is to grant decision rights
to whoever holds data and information. To strike a balance, modern organizations turn to
both solutions: the falling prices of information and communication technologies have cut the
costs of transmission and the growingly intense use of these technologies in many
organizations confirms they convey more data and information to those with decision rights,
at the same time, the common reliance on teams and other collaboration mechanisms implies

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that organizations are decentralizing decision rights. Naturally, the mix of solutions and the
centralization or decentralization of relationships it implies is unique to the organization: yet,
it is still a rare organization especially in the public sector that actually studies the optimal
allocation of its stock of decision rights and acts on that knowledge to reap the fullest
advantage.

The ultimate purpose of the school management system is to ensure that the
organization's mission and vision are realized, since this will assure the organization's bright
future. Because of their individual personalities, opinions, and experiences as leaders and
members of the organization, most institutions faced difficulties in getting individuals to
make appropriate decisions. However, achieving success is not straightforward; there will
always be factors to consider. Decision-making is critical in an organization to help achieve
goals and objectives in a timely manner. Employee involvement can be increased by goal-
setting, which can improve the organization as a whole. It can boost employee commitment
and assist individuals in the organization in understanding their roles. As a result, managerial
abilities and leadership are critical to the organization's strength and stability. Employees'
support for one another in both professional and personal concerns lifts their spirits, forming
desired institution values such as competence, service excellence, adaptability, and brilliance.

According to Simon, H.A. (2001), "decision-making is the heart of administration. It

is in this sense that the prominence in decision-making style is defined by leadership and
administration. Lawson, R &Shen, Z. (2002) explains that programmed decisions are
typically used to solve extremely repetitive and routine situations in which decision-making
methods are well-established, frequently used, easily triggered, and require immediate action.
Decision-making is critical in an organization to help achieve goals and objectives in a timely
manner. Employee involvement can be increased by goal-setting, which can improve the
organization as a whole. It can boost employee commitment and assist individuals in the
organization in understanding their roles. As a result, managerial abilities and leadership are
critical to the organization's strength and stability. Employees' support for one another in both
professional and personal concerns lifts their spirits, forming desired institution values such
as competence, service excellence, adaptability, and brilliance. Respect, fairness, trust, and
integrity are positive qualities that enable a business to achieve its goals and maximize the
potential of its employees.

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 As suggested by Misra, S. (2016), there are 4 decision making styles which are
logical, global, sequential and personable. The rational decision-making style, which is
frequently interchanged with logical decision-making style, is a decision-maker behavior that
consciously uses reason and explicitly identifies goals and alternatives, as well as careful
consideration of the consequences of using other options to achieve the identified goals.
Global decision making, on the other hand, uses numerous reference points as a guide to
making a complicated decision, such as society, organization, or group variables, as well as
the individual decision-reference maker's point. Furthermore, sequential decision making
occurs over a set length of time and involves making one decision after another while
attentively observing the outcome(s) of the previous decision. And last, personable decision
making entails a thorough examination of one's own and other people's lives. More particular
facts and problem characterization are required to make a judgment.

Accounting

As stated by Celik & Ecer, 2009, national passing rates here in the Philippines in
accounting education have been dropping year after year, alarming educational institutions to
generate more accounting professionals as this could indicate the institutions' incapacity to
react to industry changes. Accounting education is part of the university's hierarchical
structure, which includes all of the disadvantages of that structure. As a result, the speed with
which new ideas are responded to is slowed. Furthermore, educators are concerned that these
percentages may reflect the quality of accounting education in the Philippines.

According to (Ballantine & Larres, 2009), accounting educators are thus accountable
for creating curricula that, while remaining loyal to their academic qualifications, often fulfill
the needs of accountancy training authorities and employers looking for accounting
graduates. Accounting educators are well-positioned to modify the learning outcomes of their
undergraduate programs to satisfy the accounting profession's requirements.

According to Lai, et al., 2009, in recent years, academics and professionals have
become increasingly concerned about enhancing undergraduate education quality. Well-
structured course structures, such as well-defined syllabi, internship programs, case studies,
and the use of internet tools and financial analysis software, are one method universities can
improve students' learning experiences.

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Review of Related Studies

Foreign

Due to the increasing competitiveness and high expectations of globalization, the

Malaysian government is attempting to establish innovative, competitive, and high-tech
Small Medium Enterprises, or SME. Adoption of a computerized accounting system (CAS)
may be a critical aspect in an organization's success and survival. This study effort aims to
look into SME CAS practices and determine what factors influence adoption among SMEs in
Melaka. The CEO Innovativeness Factors Scale, Perceived Usefulness Factors Scale,
Perceived Ease of Use Factors Scale, and Business Competitiveness were all investigated
using a series of questionnaires. CEOs of SMEs in Melaka's Melaka Tengah, Alor Gajah, and
Jasin districts were included in the sample. The information was coded and evaluated. The
adoption rate of CAS in Melaka SMEs is high, according to this survey. The findings of the
study revealed the relevance of independent variables and demonstrated the linkages between
them and the dependent variable, which contribute to the adoption of CAS by SMEs in
Melaka. According to the data, CEO innovativeness is adversely connected with CAS
adoption, as is corporate competitiveness. Only perceived utility is strongly linked to CAS
adoption, according to the findings. As a result, the adoption of CAS among SMEs in Melaka
can be attributed to its utility. The data show that the type of business and location of the
business have an impact on CAS adoption. Size (paid up capital, sales turnover, and
personnel count) do, nevertheless, matter. However, size (paid up capital, sales turnover and
number of employees) do not influence the adopter. Results also indicate that CEO literacy
on ICT, accounting and CAS has influenced the responded CEO to adopt CAS in their
business. However, the advantages by using the accounting systems software were not fully
utilized by CAS adopters.

From 2006 to 2015, this study compares the automated accounting systems and
manual accounting systems of listed Microfinance Banks in Nigeria. In order to meet the
study's aims, three hypotheses were developed. The data for the study was acquired from fact
books, annual reports, and accounts of the mentioned Microfinance banks under study, using
an ex-post facto research design. The Hypotheses were tested using a paired sample T-test
with SPSS version 22 statistical software at a 5% significance level. The findings revealed
that a computerized accounting system had a greater beneficial impact on bank reported

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profitability than a manual accounting system. Based on these data, the study suggests that
Microfinance banks utilize computerized accounting systems rather than manual accounting
systems since they have a greater positive impact on the banks' profitability.

In Nigerian commercial banks, computerization is currently widespread. However,

just because computerization has gained acceptability in the Nigerian banking sector does not
indicate that bank performance has improved over time. According to reports, the study
would look into the impact of computerized accounting systems on bank performance in
Nigeria. Guaranty Trust Bank Plc, Wema Bank Plc, and First Bank Plc were chosen for a
sample size of 50 using the convenience sampling method. The study variables include both
dependent and independent factors, with the dependent variable being the Computerized
Accounting System and the dependent variables being the banks profitability and customer
service delivery. Correlation analysis was used to examine the data collected. The findings
suggest that a computerized accounting system improves a bank's profitability and client
loyalty. The study concludes that all banks in Nigeria should adopt computerized accounting
systems because they offer numerous advantages and benefits, and that government power
supplies should be replaced with inverters for the purpose of powering the computers used in
their operations to avoid power outages that could result in data loss.

The goal of this study was to create a standard measurement tool based on systems
theory for assessing the quality and efficacy of computerized accounting systems (CAS) in
terms of structural characteristics or functional components. Internal controls, automated data
processing, relational databases, automated reporting, and augmenting technological
components were recognized as five structural characteristics (components or subsystems) of
CAS by the researcher. The operationalization of these structural traits led in the development
of a 25-item index that serves as the assessment tool. To ensure content validity, the 25-item
index was created based on a review of past literature. Through an online survey, the CAS
measurement tool was distributed to 384 active members of the Institute of Chartered
Accountants of Nigeria (ICAN), and 234 useful replies were collected and evaluated to test
the measurement instrument's validity and reliability. The researcher used the exploratory
factor analysis to investigate the construct validity of the CAS measurement, as well as the
Cronbach's alpha test of consistency and test-retest statistics to assess the internal and

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external reliability. The study's findings indicate that the proposed CAS measurement tool
has great content and construct validity, as well as good internal and external reliability. As a
result, it is expected that the instrument will produce valid and reliable results when used to
evaluate computerized accounting systems. The study is notable because it presents a novel
technique to evaluate the quality of accounting information systems based on structural
characteristics rather than qualitative factors like perceived benefits and ease of use. Further
research is suggested to confirm the validity and reliability of the CAS measurement tool
presented in this study.

The inherent demand for correct and reliable information by businesses in order to use
it for managerial decisions is unavoidable. In this direction, information accounting systems,
the most important proper subset of information management systems, provides various
financial information to users of this type of information, particularly the managers of each
organization. Nowadays, with the emergence of computer accounting systems and the rapid
development of information technology, it is expected that the quality properties of
accounting information will improve day by day. Managers will be able to improve property
quality by making better judgments. To do this, 124 questionnaires were distributed to
financial managers, accountants and auditors of the accounts supreme court, and accountants
of the ALB administrator.

Accounting information systems have been dramatically influenced by recent

developments in information technology; computers have gotten smaller, faster, easier to use,
and less expensive, resulting in the computerization of accounting systems. The purpose of
this study was to look into the effects of computerized accounting systems on the financial
reporting of NGOs in Nairobi County. The main instrument of data collection was the
questionnaires. Quantitative data was analyzed using both descriptive and inferential analysis.
Data collected through the open ended questions and analysis of documents was analyzed
qualitatively through content analysis. The sample for the study consisted of 100 NGOs
operating in Nairobi County; selected through non-proportional quota sampling.The variable
factored in the multivariate regression model, Analysis of Variance and Percentages. The
Statistical Package for Social Sciences (SPSS) software was used to examine the data
acquired using descriptive statistics and regression analysis. Taking all other independent

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variables to zero, the study discovered that a unit increase in transparency leads to a 0.478
increase in financial report quality, a unit increase in leadership leads to a 0.143 increase in
financial report quality, and a unit increase in computerized accounting systems leads to a
0.0915 increase in financial report quality for NGOs. This infers that transparency contributes
most to quality of financial reports of NGOs followed by leadership then computerized
accounting systems. According to the study, NGOs should invest in computerized accounting
systems to increase the speed, timeliness, accuracy, and relevance of their financial reports in
order to ensure that they have high-quality financial reports. Finance management should also
adhere to legislative frameworks that strike a balance between the right to reveal and the right
to confidentiality. The management should ensure that they have an open recruitment policy
for staff based on merit in order to recruit qualified staff to enhance the quality of work in the
organizations.

The use of financial and accounting computerized systems has a considerable impact
on the financial and accounting department's organization and administration, as well as
accounting job and profession, financial and accounting information management, and
financial and accounting control and audit. This study is the result of a study that looked at
the impact of utilizing computerized accounting systems on accounting organization and
management in 25 different businesses. Accounting labor and profession are substantially
questioned as a result of large computerization and the development of intelligent systems,
since they are considerably moving towards the synthesis, analysis, and management of the
accounting system.

Because of improvements in information technology, businesses may now use

computers to perform jobs that were formerly performed manually (IT). Accounting systems
that were formerly performed manually can now be done with the help of computers. As a
result, advances in information technology have made it easier to use cost and management
accounting systems. The just-in-time (JIT) production method, on the other hand, has become
a competitive advantage for most firms. Companies that employ the JIT production method
aim to reduce inventory levels and provide goods and services to customers on time. In this
way, IT has aided enterprises in more effectively implementing JIT manufacturing methods.
The goal of this paper is to look at how technological improvements have affected accounting
systems. This essay will focus on the advantages of information technology for businesses
that use the JIT manufacturing method.

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 The study had four goals: determine the impact of quick books accounting systems on
financial performance, evaluate the impact of Sage accounting systems on decision making,
determine the impact of pastel accounting systems on financial reporting, and determine the
impact of tally accounting systems on SMEs in Bomet County. The deconstructed theory of
planned behavior, the theory of reasoned action, and the theory of innovation drove the
research. The study discovered that accounting processes were planned in small businesses.
However, this process was primarily carried out by management and consultants with some
senior staff consultation, leaving other employees and stakeholders out. The report suggests
that SMEs' management make this process inclusive by taking a wide sample of their
personnel, both vertically and horizontally, as well as all relevant stakeholders. With the
exception of a few departments, the study found that even though SMEs developed
computerized accounting systems, their inter-departments never had their own strategic plans.
According to the survey, all SMEs should establish and implement their accounting systems
in accordance with their strategic plans, which will help them achieve their objectives.
Respondents also rated the implementation process as unsatisfactory because the systems are
seldom examined, according to the survey. To ensure the effectiveness of the implementation
process, the report suggests that SMEs assess their level of and departments' level. Due to the
fact that there are challenges that are not limited to SMEs in Bomet County alone, the study
recommends that the management of other public and private or global organizations can
adopt the findings of the study and benchmark their strategies with those of SMEs in Bomet
County.

Local

The goal of the research is to find out how well small and medium-sized enterprises
use accounting systems. This study used a descriptive or survey research design, with 128
respondents receiving an adapted questionnaire. According to the findings of the study, most
SMEs have been using their accounting system for six to ten years. Similarly, respondents
who utilize a computerized accounting system are more likely to complete their tasks
efficiently while also improving the quality and amount of their labor.Meanwhile, those who
use the manual accounting system feel that, while they can complete their work accurately,
setting up a computerized accounting system is still more easy. The biggest issue that manual
accounting system users have is that it takes too long.

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Research Synthesis

Even though many people are switching to automated accounting systems, the use of
manual accounting is still prevalent today. The researchers' references to related literature and
studies discuss the computerized accounting system's utility and ease of use. This study is
identical to Mohd Sam, Mohd Fazli and Mohd Sam, Mohd Fazli and Mohd Sam, Mohd Fazli
and Hoshino, Yasuo and Tahir, Md Nor Hayati's "The Adoption of Computerized Accounting
System in Small Medium Enterprises in Melaka, Malaysia." However, the benefits of
employing a computerized accounting system are not completely utilized in this study.

A conducted study by Amahalu, N., Abiahu, M.F.C & Obi, J. (2017) on Comparative
Analysis of Computerized Accounting System and Manual Accounting System of Quoted
Microfinance Banks (MFBs) in Nigeria. A computerized accounting system can help to
provide information for decision making, which has proven to be greatly useful not only to
banks but also to all types of businesses and organizations. A Computerized Accounting
System was also used in the related study, which is similar to the research topic. The
researchers believe that this research was correct, and that it is great that a computerized
accounting system is being implemented because it can help in decision making for the Small
and Medium Enterprises in terms of (a) Economic decisions, (b) Management decisions, and
(c) Marketing decisions.

Arcega, C. K., Datinguinoo, E., Guerra, J., Guno, C., Mayuga, H. J., Villamena, E.,
and Manongsong, J. L. conducted a study titled "Computerized vs. non-computerized
accounting system of small and medium firms in Lipa City, Philippines." (2015) agrees that a
computerized accounting system improves the quality and quantity of work, while a manual
accounting system is acceptable but time consuming. Using an automated accounting system
is unquestionably beneficial to management and business. This study is similar to the one
now underway in that it assesses potential concerns as well as the accounting system's
performance. On the contrary, it neglected to take into account the effect of the computerized
accounting system in decision making.

A conducted study by Akesinro, S. A., & Adetoso, J. A. (2016) talks about ‘The
effects of computerized accounting systems on the performance of banks in Nigeria’. In
Nigerian commercial banks, computerization is now widely adopted. However, simply
because computerization has become more prevalent in Nigerian banking does not imply that
bank performance has improved over time. The study's goal is to look into the impact of

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computerized accounting systems on bank performance in Nigeria. A computerized
accounting system, according to the research, increases bank profitability and client loyalty.
The study concludes that all Nigerian banks should implement computerized accounting
systems because they offer numerous advantages and benefits, and that government power
supplies should be replaced with inverters to power the computers used in their operations to
avoid data loss due to power outages
The related study also used a Computerized Accounting System which is similar to
the research topic. The researchers believe that the study was right about its plenty of benefits
and advantages. Moreover ,the related study is only limited to Nigeria and even more it is
still not proven on the part of SMEs here in the Philippines, that is why the Computerized
Accounting System: Key on Establishing an Efficient Decision Making Affecting Business
Development is being conducted by the researchers.
A presented related study by Itang, A. E. (2020) on Computerized accounting
systems: Measuring structural characteristics. The goal of the study was to provide a standard
measuring instrument based on systems theory for evaluating the structural and functional
components of computerized accounting systems (CAS). The CAS assessment's internal and
external reliability were studied using exploratory factor analysis, as well as the Cronbach's
alpha test of consistency and test-retest statistics. The tool is expected to produce accurate
and dependable findings when used to evaluate computerized accounting systems. More
study is needed to determine the validity and reliability of the CAS measurement apparatus
described in this article.

As the related study stated, it was still open for further research in which the
researchers study regarding the Computerized Accounting System: Key on Establishing an
Efficient Decision Making Affecting Business Development will be helpful to the related
study. And as well to further determine if the CAS can be a reliable and valid instrument for
SMEs.

In another study by Pirayesh, R., Forouzandeh, M., & Louie, S. I. (2018) about
Examining the effect of computerized accounting information systems on managers' decision
making process. It concerns the relevance and truthfulness of information by organizations
which will be used by managers for decision making. The introduction of computer
accounting systems and the fast expansion of information technology are projected to
improve the quality of accounting information on a daily basis. According to the study's

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findings, using a computerized information accounting system improves data accuracy,
making it easier for managers to make decisions.
Similar to the study the researchers have taken, it tested out the Computerized
Accounting System capability of giving accurate information but for the Small and Medium
Enterprises for improvement of decision making in terms of (a) Economic decisions, (b)
Management decisions, and (c) Marketing decisions.
Information technology plays a big part of business development to have an edge
over others, grow,improve and keep always moving forward. Information technology has an
impact in the accounting information system especially in financial reports to make it fast,
economical and reliable.

As stated by Sugut, O. C. (2014) , the organization would rather invest in a

computerized accounting system to improve the quality of the performance of the
organization. This study is advantageous to those businesses using traditional or manual ways
of accounting. They have the option to implement and use the computerized accounting
system. On the other hand, this study doesn’t not provide enough information on how they
could easily adapt the changes using the computerized accounting system and how they will
be well-performed and efficient that could really affect the organization’s performance.

The research study titled, “Changes caused by computerization in the accounting

system” by Radu D. and Marius D. (2012) discussed the impact of implementing
computerized accounting systems in the business. Accounting work and profession are being
called into question as a result of substantial computerization and the development of
intelligent systems that are increasingly focusing on accounting system synthesis, analysis,
and management.

The previous study shows the potential negative effects of computerized accounting
systems on the profession and jobs of future accountants. Meanwhile the researchers study
aims for the positive effects and advantages of the computerized accounting system to the
SMEs, which potentially will help non-subsidized and independent businesses to generate
better output and gain efficiency on economic, marketing, and management decision making.

A related study titled ‘Benefits of Computerized Accounting Information Systems on

the JIT Production Systems’ conducted by İlhan DALCI and Veyis Naci TANIŞ. Through the
help of advancements in information technology, organizations may now employ computers
to handle tasks that were formerly done manually (IT). In contrast, the just-in-time (JIT)

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production approach has become a competitive advantage for most firms. JIT manufacturing
attempts to reduce inventory levels while providing goods and services to customers on time.
As a result, IT has aided firms in efficiently implementing the JIT manufacturing method.
The purpose of this study is to examine how technological advancements have impacted
accounting systems. This essay will focus on the advantages of information technology for
firms that use the JIT manufacturing approach.

Quite a comparison is that both the related study and researchers study are testing out
the IT and CAS potential boost to the production of JIT and SME respectively. In contrast the
related studies are focused on the impact of technological advancement on accounting
systems meanwhile the studies of researchers are focused on the impact of Computerized
Accounting System to SMEs’ development and efficient decision making.
A study conducted by Ng’Eno Kipkemoi Peter, Daniel Kamau, & Dr. Kepha Ombui
(2018) titled ‘Effects of Computerized Accounting System on the Performance of Small
Medium Enterprises: A Case of Business Community in Bomet County’ has a quite similar
subject used in the study. Their study's four objectives were to determine the impact of quick
books accounting systems on financial performance, evaluate the impact of Sage accounting
systems on decision making, determine the impact of pastel accounting systems on financial
reporting, and determine the impact of tally accounting systems on SMEs in Bomet County.
According to the findings, for SMEs to operate effectively, management should have a
strategy master plan from which accounting systems are designed in accordance with
organizational financial capabilities and implemented in accordance with the strategic plan.
Their study suggests that in order to accomplish their objectives, all SMEs should establish
and implement accounting systems in accordance with their strategic plans. To ensure the
efficacy of the implementation process, the paper also recommends that SMEs analyze their
own and their departments' levels. Because certain challenges are not unique to SMEs in
Bomet County, the study recommends that management of other governmental, private, or
international organizations embrace the study's findings and compare them to those of SMEs
in Bomet County.

The related study has an absolute comparison to researchers taken study. The two
studies try to look for the effects of the Computerized accounting system on the Small and
Medium Enterprises. But the difference is that their studies are focused on evaluating the
overall financial performance of SMEs, meanwhile the researchers study’s objective are the
SMEs growth and development and also on its capability of making efficient decisions

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through the use of a computerized accounting system. Also the presented related study is only
limited to Bomet County, Province of Kenya, so it would be good to conduct further study
from that in order to strengthen the evidence of computerized accounting systems to SMEs
and other fields and for future researchers.

Statement of the Problem

This paper aims to describe how the use of computerized accounting information
systems have an impact in establishing an efficient decision making affects business
development.

Specifically, it seeks to answer the following questions:

1. How are the demographic profile of the business may describe in terms of:
1.1. Types of System Use in the Business
1.2. Form of Business Organization
1.3. Nature of Business
1.4. Years of using Computerized Accounting System
1.5. Year of existence
2. How may the respondents evaluate the satisfaction on computerized
accounting system upon utilizing it in terms of:

2.1 Content

2.2 Format

2.3 Timeliness

3. How does the performance of the computerized accounting system affect the
company's decision-making in terms of:
3.1. Economic Decision
3.2. Management Decision
3.3. Marketing Decision
4. Does the effectivity of computerized accounting system affects the business
development in terms of:

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 4.1 Software Utilization

4.2 Work productivity

4.3 Ease of use

4.4 Security

5. Are there a significant relationship between:

5.1. Computerized Accounting System and Efficient Decision Making
5.2. Computerized Accounting System and Business Development

Hypothesis

Null Hypothesis

Ho1: There is no significant relationship between establishing efficient decision making and
business development.

Ho2: There is no significant relationship between computerized accounting systems and

establishing efficient decision making.

Ho3: There is no significant relationship between computerized accounting systems and

business development.

Significance of the Study

The research study will help to maximize the beneficial impact of computerized
accounting systems on establishing efficient decision making affecting business development.
This will improve the profitability of the organization as well as ensuring its continuity as a
business entity. It will review the improvement in the organization or company handling the
computerized accounting system, and show equally the ways through which improvement
could be accomplished.

The research will help us identify the beneficiaries of computerized accounting

system in decision making:

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a. Management and Employees: Management will benefit from this research as it reveals
areas of anomaly in the computerized accounting systems currently in use and suggests ways
to improve them. This research will be of greatest benefit to the management and employees
of organizations that have not yet adopted a computerized accounting system. This allows us
to see and understand the value and benefits of using a computerized accounting system for
financial reporting. This can affect their company's business decisions.

b. Future Researchers: This study would help the future researchers to be aware and
knowledgeable of the information related to computerized accounting systems. It would help
them to be a better analyst and it can be a help as a future reference for more studies in the
future.

Scope of the Study

The study will focus on the micro and/or medium enterprises within the area of City
of San Fernando, Pampanga. The study covers only discussion on a few demographic profile
of the business that were deemed to have a possible association with computerized
accounting system based on existing literature: (a) types of system use in the business, (b)
form of business organization, (c) nature of business, (d) years of using computerized
accounting system and, (e) year of existence.

The assessment of the computerized accounting system affecting micro and/or

medium enterprises, respondents will be delimited only to the following factors: (a) software
utilization, (b) work productivity, (c) ease of use and, (d) security. The study is limited to
determining if the said demographic profile had a significant relationship with the
computerized accounting system to efficient decision making affecting micro and/or medium
enterprises within the City of San Fernando, Pampanga as well as a list of recommendations
proposed based on the findings for future strategies for computerized accounting systems.

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Conceptual Framework

Efficient Decision
HO1 Making

Computerized
Accounting System

HO2 Business Development

Independent Variables Dependent Variables

Research Instrument

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 Survey Questionnaire

Name of the Respondent: ________ Age: _______ Address: ____________

I. Demographic Profile of Businesses in City of San Fernando, Pampanga

Instruction: Please read carefully and check the corresponding boxes for your answer/s.

a.Type of system used in the business o 11-15 years

o Manual Accounting o 16-20 years
o Computerized Accounting System o 21 years and above

b. Form of business organization e.Accounting software used: (if applicable)

o Sole Proprietorship o MYOB Plus for Windows
o Partnership o ACCPAC
o Corporation o CYMA
o BOOKKEEPER
c.Nature of Business o QUICKBOOK PRO
o Retail o Others:_ please specify_
o Service
o Wholesale f. Plan to shift to computerized accounting
o Industry system: (if applicable)
o Insurance o Yes
o Entrepreneurship o No
o Institutional g. Year of Existence
o Real Estate none
o 1-5 years
d. Duration of Computerized System being o 6-10 years
Implemented o 11-15 years
o none o 16-20 years
o 1-5 years o 21 years and above
o 6-10 years

II. Satisfaction Measures

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Use the following scale when responding to each statement by putting a (✓) check mark
from the scale below that best describes your response.
5 - Strongly Agree
4 - Agree
3 - Neither Agree nor Disagree
2 - Disagree
1 - Strongly Disagree

Content 5 4 3 2 1

a. Does the system provide the precise information you

need?

b. Does the information content meet your needs?

c. Does the system provide reports that seem to be just about

exactly what you need?

d. Does the system provide sufficient information?

Format 5 4 3 2 1

a. Do you think the output is presented in a useful format?

b. Is the information clear?

Timeliness 5 4 3 2 1

a. Do you get the information you need in time?

b. Does the system provide up-to-date information?

III. Assessment on the Accounting Computerized System Performance affecting

Decision Making

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Economic order quantity decision 5 4 3 2 1

a. Accounting information generated goes a long way in

determining the amount or quantity of good to be
ordered for

b. Unfavorable accounting information on a particular

product would help in reducing its order quantity

c. The information generated from the accounting

department helps in minimizing cost involved in the
ordering of goods.

d. The number of units of inventory required within a

particular period of time can be shaped by accounting
information.

e. Accounting information helps to reflect the effect of

changes in the turnover of a product on the order of its
inventory for production

f. Lack of consideration of accounting information

generated brings about uneconomical ordering of some
goods

g. The best quantity ordered at different level of discount

is achieved by a good use of accounting information

h. Accounting information generated on a particular line

of product brings about a possible increase in the
allocation of its resources

Human resources management decision 5 4 3 2 1

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 a. Optimum allocation of resources could be made by
effective use of accounting information generated

b. Effective use of accounting information brings about a

proper and good allocation of resources of competition
activities.

c. Sub-optimal allocation of resources would be made

when accounting information is not followed.

d. Good use of accounting information prevents wastage

on the allocation of resources to different lines of
product.

e. The use of limited resources to the best advantage

among competing activities could be facilitated by
proper use of accounting information

f. Accounting information provides a hint on what

product or activities more resources should be
committed to boost its turnover.

Marketing Decision for new product 5 4 3 2 1

a. A good use of accounting information by management

brings about the introduction of new and better products
in the market.

b. A new product in the market is facilitated by an effective

management decision through accounting information.

c. The returns generated on a product shown by the

accounting information go a long way in determining the
continuity of the product

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 d. Lack of consideration of accounting information by the
management brings about a late or no new product in the
market.

e. The examination of increased demand in a particular

product showed by accounting information may cause
managers to introduce that product

f. The introduction of a new product is geared by proper and

efficient examination of accounting information by
managers

g. The viability of a product showed in accounting

information goes a long way in making manager hunt for
introduction of the product

h. The favorable cost-benefit analysis presented on a new

product in the accounting information preempt managers
interest in it

IV. Assessment on the Computerized Accounting System Performance affecting

Business Development

Use the following scale when responding to each statement by putting a (✓) check mark
from the scale below that best describes your response.
5 - Extremely Effective
4 - Very Effective
3 - Effective
2 - Somewhat effective
1 - Not Effective

Software Utilization 5 4 3 2 1

a. The software is available is easy to use and navigate

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 b. The software is genuine and updated, such that when
used, the results are free from error

c. The software enhances my production of high quality

results

d. The software has the ability to execute a job without

failure under any condition

Work Productivity 5 4 3 2 1

a. Through the use of computer in my workplace, I have

been able to finish my assigned task

b. Through the use of computer in my workplace, my

work has been faster, more accurate, effec- tive,
efficient and reliable

c. The use of computer has enhanced and in- creased the

quality and quantity of my work

d. Computerization is of utmost importance to my job

Ease of Use 5 4 3 2 1

a. It takes less time to learn the various computer

processes

b. It is simple to learn the various computer processes

c. Computerization makes my job easy and simple

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 Security 5 4 3 2 1

a. Computerization enables me to back up my files so as

to protect my data

b. Computerized system helps me with the track- ing of

my unfinished work

c. Through computerization, I have limited ac- cess or

manipulation of data from outside the system

d. Through computerization, I make use of sys- tem

locks for hardware, software and database

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 Chapter II : Methodology of the Study

Research design

The purpose of the research is to examine and analyze the efficiency of using a
computerized accounting system towards decision making affecting business development.
Several firms are increasingly engaging systems and implementing its capabilities within
their systems as a result of computerized accounting system applications attracting a lot of
development and market professionals.
To achieve the study's research objectives, the researchers are performing a
quantitative study using a descriptive correlational research methodology. This study will
employ the survey research design. The questionnaire that will be used is a closed-type
questionnaire.
A descriptive research approach displays overall structure of engagement as it occurs t
at the time of the study and entails data collection to testing theories or address questions
about the study's subject's existing state. While a correlational aspect will also be executed in
the study as it observes the correlation of business development to other variables:
computerized accounting system and efficient decision making. In addition, the quantitative
segment of the study will be completed across the employment of a survey questionnaire. The
approach in the same manner authenticates the meaning of figures collected from the
viewpoint and aim of the research undertaking.
A adopted instrument from Maligaya, M., and Catena, M. (2014), Doll, W. J., as well
as Torkzadeh, G. (1988) and Akinola, Adebayo, O. Bukunmi, O. (2018) is used to evaluate
the relationship between the variables: computerized accounting information system and
decision making, computerized accounting information system and business development,
and decision making and business development. A four-part questionnaire is utilized to assess
the relationship between the variables: Part 1- the demographic profile of the businesses in
San Fernando, Pampanga, Part 2- satisfaction measures of users of CAS, Part 3- assessment
on the computerized accounting system performance affecting decision making and lastly,
Part 4- assessment on the computerized accounting system performance affecting business
development.

Respondents and Sampling Method

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 The study will be applying Snowball sampling. The respondents of the study will be
those who established micro and/or medium enterprises within the area of City of San
Fernando, Pampanga.
The respondents will be picked using a referral method in which every Small and
Medium Enterprises that has responded to the researcher's questionnaire will be referring to
other businesses with similar characteristics. Also, since snowball sampling is a non-
probability sampling the researchers will make use of their own judgment and to decide who
will be the respondents. Furthermore, the Small and Medium Enterprises suited well as the
chosen respondents of the study, SMEs are independent firms and non-subsidized as well
which are good for the researchers study regarding computerized accounting system and its
benefits it can give to them. Additionally, SMEs are plentiful in numbers compared to large
and well established companies or corporations which means, less difficult to get sufficient
and fair numbers of information which will be helpful to gain better results for the study

Instrumentation
We, the researchers, use adopted survey questionnaires as our main instrument for the
collection of information which are very essential in our research study. We used a close-
ended question to establish a report from our respondents. Our survey questionnaires are
adopted from different studies which include (a) Bukunmi, A., Akinola A., & Adebayo, O.
(2018) for the variables of effectiveness of accounting information in management decision,
(b) Maligaya, M. & Catena (2014) for the variables of enhancing the computerized
accounting system in an organization and (c) Doll, W.J., & Torkzadeh, G (1998) for the
variables of the measurement of the satisfaction of the end users which are being assessed,
evaluated and reviewed from different literature and other associated credentials.
The survey questionnaire was made up of four(4) major parts; the first part [is
pertaining to demographic profile of the business in terms of : (a) type of system used, (b)
form of business organization, (c ) nature of the business, (d) duration of computerized
system used (e)accounting software used, (f) plan in shifting to use computerized accounting
system and (g) years of existence. In addition, the second part of the questionnaire concerns
the system’s satisfaction measurement of the business in terms of: (a) content, (b) format, and
(c ) timeliness. In the proceeding part, it entails about the effectiveness of decision making
from the assessment of computerized accounting system performance in terms of: (a)
economic order quantity decision, (b) human resource management decision and (c)
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marketing decision for new product. And lastly, the last part of the survey questionnaire
shows how computerized accounting system performance affects the development of the
business in terms of; (a) software utilization, (b) work productivity, (c ) ease of use and (d)
security.

Data Collection Procedure

The researcher used adopted questionnaires from three different studies related to the
present study to gather first-hand information from the respondents. Before the copies of the
questionnaires were distributed to the respondents.

Data were collected in two ways: on location and online. In the former, data collection
was planned in advance with the respondents and took place in the workplace. The
respondents who agreed to participate in online data collection provided a Google form link
to the questionnaire. With the use of the Google form, the questionnaire could be retrieved.

The researcher also obtained the authors' permission to use the instruments.

Ethical Consideration

To ensure that the study will be conducted ethically, the researchers will explain the
nature of the study to each respondent and provide consent forms prior to the research
questionnaire. It is necessary to safeguard the privacy and confidentiality of the participants
and concerns were pointed out to prevent problems in the future. The issues that will be
considered include confidentiality, consent, and identity protection.

All the respondents were given sufficient time to answer the questions enunciated to
avoid mistakes in their answers. A waiver will be given to the respondents to ensure their
confidentiality and to secure the information they request not to expose. Their participation
will be obtained afterward, and they will be assured that the information gathered from them
was handled with the utmost confidentiality.

After data collection, answers will be rechecked to obtain accuracy, clearness, and
completeness. All data will be stored properly and only used for the intended study. Once the

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study is completed, all data stored and encoded will be deleted and disposed of immediately
by the researchers. This will be carried out to promote the researcher and respondents.

Data Analysis Procedure

The discussion has been used to clarify the relevant questions that were duplicated
throughout the research survey as well as to assess the responses of the participants,
especially in accordance with the research findings. All preparation of the survey form
distribution was done by the analyst personally. The guidelines listed below were applied
consistently.
The researcher wrote an official letter that was sent to the owners of qualified and
selected small and medium enterprises (SMEs) in San Fernando, Pampanga. Formal letters
were provided for approval of the data collection process, which will aid the researcher in
reaching their conclusions.
The researcher confirmed that the participants acquired a comprehensive
understanding of answering to the specific items throughout the survey form when the survey
forms were distributed. The voluntary character of participation was widely understood by all
participants. The protection of the privacy of all provided data, as well as the ability to
withdraw at any time, have all been taken into account. Participants were also asked to sign
an informed permission form and provided the proponent's contact details in case more
clarification was needed.
The researcher will hand the questionnaires to the participants after receiving consent.
If selected small and medium enterprises could not accommodate physical contact, the Online
survey was used to encourage participants to take part remotely. These would be recovered
after five working days (or longer depending on the availability of the completed
questionnaire), and they were validated, analyzed, grouped, and statistically processed.

Statistical Treatment

To enable efficient movement of records and information analysis, the following

specifications related to statistical tools were employed:

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 1. To assess how may the respondents evaluate the satisfaction of a computerized
accounting system upon utilizing it, the weighted mean computation was used.
2. To verify the performance of the computerized accounting system affects the
company's decision-making. This was used to explore the participant's selection
approach, it was presented using a five-step scale value and a conversion to a
qualified weighted mean in the descriptive assessment shown below.

Scale Value Range Interval Description

5 4.50-5.00 Strongly Agree

4 3.50 4.49 Agree

3 2.50 3.49 Neither Agree nor Disagree

2 1.50-2.49 Disagree

1 1.00-1.49 Strongly Disagree

3. To determine the assessment on the Computerized Accounting System Performance

affecting Business Development, the Likert Scale was also applied. This was the
respondents approach which was described using the five-point used scale conversion
on the qualified weighted mean into a descriptive assessment below.

Scale Value Range Interval Description

5 4.50-5.00 Extremely Effective

4 3.50 4.49 Very Effective

3 2.50 3.49 Effective

2 1.50-2.49 Somewhat effective

1 1.00-1.49 Not Effective