APPENDICES

APPENDIX I: QUESTIONNAIRE

Dear respondent, we are students at Infolink University College undertaking a study on the
Assessment of Accounting and Reporting Practices of Manufacturing firms in Hawassa City
taking a case study of AMA Paper and Paper Packaging Manufacturing PLC. You have been
identified as one of the person who can provide important information. We kindly request you to
answer the questions sincerely and accurately. The information will only be used for academic
purposes and it will be treated with maximum confidentiality. Thank you for your kind
cooperation.

Yours faithfully,

Section I: Bibliographical Data

Instructions: Please provide the following information by making a “tick mark” in the
appropriate block where the options are provided.
General Information
1) □Finance Department □Production and Technic □ Purchasing and Property Admin
□ Marketing & Sales □ Other Specify:
2) In what position are you working in your company? : _____________________

3) Gender: □Male □ Female

4) Age: □ Below 25 □ 26-30 □31-40 □41-50 □ above 50
5) Educational Background □ 10th Grade complete □ Certificate □Diploma □ Degree
□ Master’s Degree □Other Specify:
6) Work Experience (in years): □1-5 □6-10 □11-15 □16-20 □above 20

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 Section II: The Accounting System of the Company

1 Does your organization maintain formal accounting system? A YES B. NO

Which accounting do you practice in the business?
2
A. Keeping records and reporting B. Payroll C. Taxation D. Bank statement E.All
If your company implemented Computerized accounting system" describes the name of the
3 system?
A. Peachtree B. Quick book C. Excel
What is the reason to maintain computerized accounting?
4 A. Scale of the business B. availability of the resource C. Cost of administration D. To minimize
error E.All
Which bases of accounting have been practiced?
5
A. Cash base B. Accrual base C. Modified
Which standards have been implemented in your organization? (International accounting
6 standards)
A. GAAP B. IFRS
What is the basic motive to use the above standard?
7 A. legally required B. organization regulation C. required by the owners D. to full fill the
requirement of the users of the financial information E ALL
What are the major purposes of accounting systems?
A. Formulating overall strategies and long-range plans
B. Resource allocation decisions such as product and customer emphasis and pricing.
8 C. Cost planning and cost control of operations and activities
D. Performance measurement and evaluation of people
E. Meeting external regulatory and legal reporting requirements
F,ALL
9 Is Double entry followed in recoding transaction? A YES B. NO
10 Is the theoretical accounting processes are practiced thoroughly? A YES B. NO

Which forms of “Chart of Accounts” are in use?

11
A)The balance sheet accounts B)Income statement accounts C) Both

Does the company have a structured Financial accounting Policy Manual?

12
A)Yes B)No

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 Section III: Common Forms of Business Transactions and
Related Source Documents for Accounting Records
What are the most common and significant forms of business transactions?
__________________
_________________
1
__________________
___________________
___________________

Which of Accounting of records your company's business transactions use?

2

Which types of depreciation calculation method is implemented in your company? A) Straight-line &
3
pooling method B) Double Decline Method C) Others

Please list out the types Finance Department's Own records and Source
Document. And other department’s documents.
__________________
4 _________________
__________________
___________________
___________________

Section IV: Financial Reporting Practices

1 What kind of financial information is prepared?

A. Balance Sheet B. Income and loss Statement C) Statement of Cash flows D) Statements of
change Equity E) ALL
2 Who Preparers the accounts and financial statements.
A)Full time accounting officer B)Consultant C) Owner manager D) Independent public
accountant
3 Who are the users of the reports?
A. Government B. Owners C. Creditors D. Employees E. Customers F. Investors E ALL

4 Which of the following financial management have been practiced?

A. Ratio analysis B. Working capital management

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 5 What is the Purposes of preparing financial statements
A)For making important operational and investment B)For support in getting loans C)For
profit sharing D) For the calculation of income tax E) ALL

6 Is there on time report preparation practices? A YES B. NO

7 How do you prepare your financial accounting reports;
A) Monthly B)Quarterly C) Semiannually D) Annually E)On Demand F) ALL
8 Is the cash book is regularly reconciled with bank
statements. A YES B. NO

Section V: The System of Internal Control Practices

1 Is there well developed Written Procedure in the form of procedure manuals, instructions,
and directives which is used by all staffs of the company ? A.YES B.NO

2 Does your entity maintains policies and procedures to facilitate the recording and accounting
of transactions in compliance with law and regulations ? A.YES B. NO

3 Has your company an internal auditor practice in the organization? A.YES B.NO

4 What are the key Controlling Areas of Internal Audit?

______________________________
_____________________________
_____________________________
5 Are audit reports sent to management for appropriate decisions? A.YES B.NO

Section VI: The Cost Accounting Practices

1 Does your company produces multiple products ? A)Yes B)No

1. Does the company have adequate, efficient and qualified in cost accounting staff?
2
A)Yes B)No C)I don’t know
Do you have separate cost accounting department (section)?
3
A)Yes B) No
Does the company have a structured cost accounting policy / manual?
4
A)Yes B)No
What is the company Inventory Record Keeping?
5
A)Periodic inventory system B) perpetual inventory system C) Both
Does the costing department record the inventory movement transaction (incoming and issuing of raw
6 material) immediately when it gets the proper source documents?
A)Yes B) No

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 Does the company make inventory counting? If yes, Specific the time interval
7
A)Monthly B) Yearly C) other _____
What are the costs or charges which will included as cost of purchased raw material?
A ---------------------
8 B ---------------------
B ---------------------
C ---------------------
What is the company inventory cost flow assumption?
9
A)FIFO B)LIFO B)Weighted average C) Moving average
Which costing method do you adapted?
10
A)Job order costing B)Processes Costing C)Hybrid Costing
Do you think the firm use proper predetermine rate for allocating manufacturing overhead costs?
11
A)Yes B) No
Which of the following costing systems the company used to allocate overhead costs
12
A) Plant Wide Allocation B) Departmental Allocation C) Activity Based Costing (ABC)

Does the cost allocating department use more than one pool for accumulating indirect or overhead costs?
13
A) yes B) No

Which base or basis do you use for the allocation of manufacturing overhead costs?
A)Direct labor hours B) Direct materials amount
14
C)Direct labor costs C) Direct material costs
D)Machine hours E)Production
Which methods of costing that in used to calculate the cost of your products ?
15
A) Normal-Absorption Costing B) Variable Costing
16 Is the current costing system convenient for cost effective production cost assignment? A) yes B) No
Do you think the company current machinery working time follow up sheet system or technique affect
17 the cost of produced finished goods inventory?
A)Yes B) No
What costs includes the cost structure of your Organization?
18 A)Direct Material B)Direct labor C)Manufacturing Overhead D)Administrative Overhead E)Selling &
Distribution F)ALL
To what Extent the cost accounting system provides information on a systematic regular base?
19
A)Daily B)Monthly C)Quarterly D)Yearly E)Up on request
How cost accounting system provides data to allow you to analyze costs by?
20
A)Product B)Cost Center C)Activity

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 Section VII: The Cost Management Accounting Practices

Does Separation make between variable and fixed costs while preparing internal reports?
1
A.YES B.NO
Does the company have a system of standard costing & variance analysis on periodical basis?
2
A)yes B)No C) I don’t know
Is the cost/profitability of finished goods products/activities regularly measured and also form part of
3 regular report to the management of the company?
A)yes B) No
What forms of cost management accounting functions are practices in the Company?
4 A)Cost Behavior Analysis: Break-Even Analysis, CVP Analysis or Target Profit Analysis
B)Standard Costing and Variance Analysis
Does the cost accounting department prepare interim production reports to management?
5
A) yes B)No
Which control methods do you use for cost control?
6 A)Operational budgets/ Budgetary control B) Standard costing C) Variance analysis D) Quality cost
control
Is the accounting system helpful to regularly report variances of budget & actual cost to measure
7
management performance as a control device? A) yes B)No
8 Is the accounting system is used as a control device and fixing price of product? A) yes B)No

Section VIII: The Budgeting and Budgetary Control Practices

1
Does the company have a structured Budget Policy / Manual? A)Yes B)No
2 What forms of budgeting system management accounting practice (Budgeting Process and
Control): in the Company?
A) Master Budget Preparation B) Flexible Budgets C) Both D) None
3 Does the company grant strong effort to follow the budget?
A. Not at all B. a little effort C. modest effort D. Strong effort
4 Do you have Budget Variance Analysis Practices-For Budgetary Control? ? A)Yes B)No

Section IX: Interview Check List

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1 What are the limitations of your financial reports?

What are the challenges your businesses facing in adopting effective both financial & cost
2
accounting and reporting practices?
What is the System of Internal Accounting Controls for Basis of Expenses and Revenue
3 Recognition? And, what are the major procedures/policies established so as to Control Over
Expenses and Revenue?
What are the major General Policies and Procedural Guides which are practiced for the
4
internal control over cash payment, cash receipt and receivables?
What are the significant accounting policies for Recognition and Valuation of ,PPE,
5
Inventories and Current Liabilities: including their accounting system of internal control?

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