Efficient and effective accounting information systems are based on certain basic principles. These principles are:
i) Cost effectiveness
ii) Usefulness and
iii) Flexibility
The principles of accounting information systems are explained below:
i) Cost effectiveness: The accounting system must be cost effective. Benefits of information must outweigh the cost of providing it.
ii) Usefulness: To be useful, information must be understandable, relevant, reliable, timely, and accurate. Designers of accounting systems must consider the needs and knowledge of various users.
iii) Flexibility: The accounting system should accommodate a variety of users and changing information needs. The system should be sufficiently flevible to meet the resulting changes in the demands made it.
i) Cost effectiveness
ii) Usefulness and
iii) Flexibility
The principles of accounting information systems are explained below:
i) Cost effectiveness: The accounting system must be cost effective. Benefits of information must outweigh the cost of providing it.
ii) Usefulness: To be useful, information must be understandable, relevant, reliable, timely, and accurate. Designers of accounting systems must consider the needs and knowledge of various users.
iii) Flexibility: The accounting system should accommodate a variety of users and changing information needs. The system should be sufficiently flevible to meet the resulting changes in the demands made it.