CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Computer has been defined as electronic machine that accept data

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

capable of storing information. It uses predefined instruction known

as computer programs to execute the task in order to produce

output. Computers technology has helped in no small measure in

activating the problems encountered using the manual tools and

machines. Computerization ranks prominently in the commanding

heights of economic activities of the business world. Through

computerization industries have been able to control their cost of

production heading to high profit margin sustainable growth and

development accurate and lasting records.

The manufacturing industry has come a long way from the manual

era of machine operation to modern day science and technology.

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

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business world with significant positive impact on the business world.

Notable among these changes are those changes in manipulation of

accounting records fantastic computer designs etc.

We have various types and categories of computers which perform

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

research is the digital type of computer.

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

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

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

counting invented by John Napier in the 1600’s. Blaise Pascal

followed closely with a mechanical machine that could do similar jobs

more efficiently. GOH friend Von Liebritz invented a more improved

version of Pascal’s machine. Other great mathematicians and

investors like Jacuard Babbage Grace Hopper etc made greater

strides towards building calculating machines. An American Herman

Hoterrith developed the mechanical members calculator which was

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

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

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

Business machines) the largest computer company in the world.

The era of modern computers began sometime in the period

preceding the end of the Second World War when the vast

calculations required in the production of the first bomb necessitated

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

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

Thus from this period on wards with the introduction of new

technologies computer became smaller in size and cheap as well:

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

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

There are three classes of computers now in use viz;

1. The micro – computers

2. The mini- computers

3. The mainframe computers

i. MICRO – COMPUTERS: These computers are designed to

handle simple data processing functions; it is the smallest general

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purpose computer. Micro computers are capable of handling

independent task and do not led themselves to integrated

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

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

contain sophisticated input/output forms. Micro computers and

their speed are designed to be stand alone computer which

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

network or system. Their memory is smellier than that of

mainframe or mini computers and their speed of processing data

is slower also.

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

maybe be defined as a seated down mainframe as the processor

and peripherals are physically smaller. Although the processor

may be physically smaller it is powerful than the micro

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

do different jobs simultaneously through a linkage channel called

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

control customers account records and employees payroll. It can

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also be used to prepare final accounts of companies using

computerized accounting system.

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

processing speed and capability than both mini and micro

computers. These are used by large organization with immense

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

widely diverse as law medicine and architecture. However the

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

processing and analysis for business organization.

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

in technology of automation. The introduction and adaptation of the

computer to business has led to revolutionary changes in data

processing methods in advanced countries.

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

day Nigeria there is a noticeable and marked trend towards

computerization of computers often with little or no back-up

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

maintenance and utilization.

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Companies are begin attracted to this computerization possibly with

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

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

In answering the question why any organization should consider the

transition to computerized accounting system Larry J. Campbel

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

fundamental reasons for transferring to some form of mechanization

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

enterprise. Companies turn to mechanization because.

1. Company growth exceeds the capability to expand the present

processes by any other reasonable scheme.

2. Technology changes force different and more computer tactics

that can best me mechanized.

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

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

speed to meet up with competition.

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1.2 STATEMENTS OF THE PROBLEM

The problem of this study includes:

1. The problem of industrial unrest

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

company.

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

computer system they have installed thereby leading to

inefficiency.

4. The problem of company’s data processing operation which are

amiable to automation may be over looked.

1.3 STATEMENT OF THE OBJECTIVE

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

industrial unrest as workers resists change.

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

obsolesce or unsuitableness for the need of the company.

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

computer systems installed thereby leading to efficiency.

4. To examine how companies data processing operation can be

amenable to automation so that they cannot be over looked.

1.4 RESEARCH QUESTIONS

The followings are the research questions

Research questions help in obtaining adequate information within the

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

discussion of a research question some of the research questions

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

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

system? Yes/no.

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

returns? Yes/No.

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

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

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

Yes/No.

1.5 RESEARCH HYPOTHESIS

These are problems that put together all the concepts construct and

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

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

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

objectives of the research exercise.

The following research hypothesis are used where

HO: Stands for Null hypothesis

Hi: Alternative hypothesis

1. Ho: Cost benefit analysis computerized accounting system does

not helped coca-kola bottling company Plc Enugu.

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Hi: Cost benefit analysis computerized accounting system helped

coco-kola bottling company Plc Enugu.

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

acquisition.

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

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

coca-kola bottling company Enugu.

Hi: Computerized accounting system has impact on the staffs of

coca-kola bottling company Enugu.

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

from the cost of using computerized accounting system.

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

computerized accounting system.

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1.6 SCOPE OF THE STUDY

The challenges of cost benefit analysis in a computerized accounting

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

th

mile Emene Enugu State.

1.7 SIGNIFICANCE OF THE STUDY

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

improving the use of computer system.

2. The implementation of computerization of coca-cola bottling

company Enugu has significantly saved cost and has increased

profit maximization.

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

to reduction in labour costs.

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

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1.8 LIMITATIONS OF THE STUDY

During the course of this study some constraints were encountered

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

The constraints were numerous as they prove formidable and able to

determine to some external the ultimate outcome of the study.

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

had to be apportioned between studies research and other social

endeavors since all the these activities are very important to my

well-being none had to be forgone.

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

to sought for material print questionnaires and post to

respondents and to compile the report. Finance being a scare

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

study.

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

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

available some important fact.

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1.9 THE COST BENEFIT ANALYSIS

1. The benefit of an organization using a computerized accounting

system is important because the organization will be modernized

in its cost of using computer systems for its business.

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

systems whereby the organization will no longer have to spend

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

manual system in the organization because there is no computer

system to make their work faster.

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

computerized accounting system will include the organization

benefiting from the account of the organization not having errors

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

accounting system an error cannot occur because the computers

will be there to detect error.

4. The organization will also benefit from using a computerized

accounting system if in the case of centralize organization

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

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

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

the office to get information.

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

computerized accounting system the work of the organization will

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

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

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