The problem investigated was the recent experience of the Pacific Health Club related to the firm's accounting function. Problems associated with the firm's accounting function included the following: (1) late and incomplete financial reports; (2) late, missed, and inaccurate billings and recordings of receipts; and (3) late, missed, and inaccurate payment of accounts payables.
The purpose of this project was twofold. The first objective was the determination of the underlying cause of the problem, while the second objective was to develop and recommend a solution to the problem.
The research performed for this project was limited to an investigation of the firm's accounting function. The investigation of the accounting function necessarily included some company personnel not assigned to the accounting section. The problem investigated in this study originated within the accounting section, and continues to be seated in that section of the organization. This problem necessarily involves the accounting manager and two accounting clerks. Additionally, the faulty and late financial reports resulting from the problem
cause nine members of the organizational management team to be involved in the problem. One of the manifestations of this problem is the generation of incorrect customer statements. Thus, the organization's customers are also involved in the problem. While not all of the organization's 3,500 plus customers are plagued by incorrect billings on a continuing basis, almost all of the customers have encountered the phenomenon on at least one occasion.
The depth of the research performed for this project was limited by available time and funds. Although the Pacific Health Club authorized the investigation and cooperated in the conduct of the investigation, the firm provided no funds or personnel to assist in the conduct of the investigation. Thus, these burdens were borne by the researcher.
The first obje...