Role of Finished Goods Accounting Information Systems in Enhancing Internal Inventory Control: A Case Study of a Mining Company

Abstract

This study aims to investigate and analyze the influence of Finished Goods Accounting Information Systems on Internal Inventory Control within a mining industry company located in Cikampek. With an effective and optimally utilized accounting information system for finished goods, the expectation is that the internal control of finished goods inventory within the company can be maximized. The research employs a descriptive-verificative methodology, utilizing simple linear regression analysis to determine the extent of the relationship and impact between the two variables. To support the findings, the researcher collected secondary data through questionnaires administered to 35 employee respondents. The results of the study reveal a strong positive influence of the finished goods accounting information system on internal inventory control, as indicated by the linear regression analysis. Furthermore, the findings demonstrate that the Finished Goods Accounting Information System significantly contributes to enhancing internal inventory control, while acknowledging that other unexamined variables may also affect this relationship. The implications of this research suggest that mining companies should prioritize the implementation and optimization of effective accounting information systems to strengthen their internal inventory control processes. Additionally, the study contributes to the literature on accounting practices within the mining sector, providing valuable insights for both practitioners and researchers seeking to enhance inventory management strategies.