A COMPREHENSIVE STUDY OF ACCOUNTING INFORMATION QUALITY AS A MEDIATOR BETWEEN MANAGEMENT ACCOUNTING PRACTICES AND INVENTORY MANAGEMENT IN OPERATIONS RESEARCH FOR MANUFACTURING COMPANIES IN INDONESIA

Abstract

Efficient management accounting practices have the potential to enhance the quality of accounting information systems by facilitating the provision of precise cost data, effective budgeting, and performance measurement. The enhanced information system facilitates companies in making more efficient inventory management decisions by ensuring enhanced synchronisation with customer demand. The objective of this study is to examine the mediating role of the quality of accounting information systems in the association between modern accounting information systems and inventory management in Indonesian manufacturing firms. A convenient sampling technique was employed to collect quantitative data from a sample of 400 accounting professionals working in manufacturing companies in Indonesia. The regression analysis conducted using SPSS revealed that the implementation of Total Quantity Management, Just-In-Time, Target Costing, Time-Driven Activity-Based Costing, and the Balanced Scorecard have a significant and positive impact on the quality of accounting information. Additionally, the presence of a quality accounting information system serves as an indirect mediator, highlighting the substantial mediating impact between management accounting practices and inventory management. This underscores the crucial significance of an efficiently operating accounting system in enhancing decision-making pertaining to inventory. The aforementioned findings make a noteworthy theoretical contribution by highlighting the pioneering role of the quality of accounting information systems in mediating the relationship between modern management accounting practices and inventory management. This study has the potential to provide practical guidance to companies that aim to improve their operational efficiency and competitiveness in the current dynamic business environment. The study's conclusion included a discussion on the limitations of the research and potential avenues for future investigation.