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Accounting Information Systems and Merchandise

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The four unique characteristics of professional service organizations are "(1) an absence of an inventory of sale able merchandise, (2) the importance of professional employees, (3) difficulty in measuring the quantity and quality of output, and (4) small size". Out of these 4 which one causes the greatest problem for a professional service organization's Accounting Information Systems (AIS) and why?

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The four unique characteristics of professional service organizations are "(1) an absence of an inventory of sale able merchandise, (2) the importance of professional employees, (3) difficulty in measuring the quantity and quality of output, and (4) small size". Out of these 4 which one causes the greatest problem for a professional service organization's Accounting Information Systems (AIS) and why?

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Small size, importance of professional employees and absence of inventory of saleable merchandise do not pose as much difficulty as the difficulty in measuring the quantity and quality of output. As it is difficult to measure the output of the organization in terms of services rendered, especially during the midst of long term service contracts, accounting information systems developers face great problem in ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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