ABSTRACT

For a company to ensure and establish its existence as a going concern, it must aim at a good profitability scheme. In order words called profit optimization. This can only be achieved through efficient use of a good accounting system. As such, this research study comprises how effective and efficient the instruments of good accounting system have efficiently applied in manufacturing firms or companies using and the impact of this good accounting system, detecting their various effects and valuation of their performance. The study bears the following problem which expected to be analyzed and suggested solution will be offered, such problems include, a good accounting system may be insufficient based on some predicaments in an organization. These predicaments may include lack of segregation and assignment of duties to accounting staff. In order to achieve success in carrying out the study, various types of data collection methods were used, which forms the primary data also observations were made to equip the primary data collected. The secondary data collected includes, document materials both published and publishers' books, Journals, magazines and annual reports etc. Analyses of data were made, with the aid of seventy (70) questionnaires administered to the respondents. Responses were analyzed and decisions taken. The two hypotheses tested for the study with aid of chi- square (x2) model technique includes the following: HO1: A good accounting system has no significant effect on the performance of the company. H02: Inadequate accounting system does not have any profitable effects on the company. Findings were made also in the study, these findings includes: a) That a good accounting system has significant effect on the performance of the company also that inadequate accounting system have any profitable effects on the company, that the company has inadequate manpower that majority of w9rk qulifid taff$, that inad©quucies in the design of accounting system bring decline in the profitability rate of a company.