Friday, February 20, 2015

Disadvantages of an integrated accounting system?

Disadvantages of an integrated accounting system?
The main disadvantage of integrated accounts is that a single system is used to provide information both for external and internal reporting requirements. The need to provide information for statutory purposes may inuence the quality of information which can be made available for management purposes. For example, it may be more useful for management purposes to have inventory valued on a LIFO basis. However, this would not be acceptable for external reporting purposes and the latter requirement may prevail to the detriment of management information

No comments:

Post a Comment