Chapter V

SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATION

This chapter presents the summary and findings of the study, conclusions

based on the interpretation of data and the corresponding recommendation.

Summary

The general objective of the study was to assess the accounting system of

bakeries in Batangas City using the transaction cycles. Specifically, it sought

information on the business profile of the respondents in terms of forms of

business organization, number of years in operation, and average monthly

income. It also assessed the accounting system of bakeries in Batangas City

using the three transaction cycles, which are the expenditure cycle, conversion

cycle, and revenue cycle. It also intended to know the issues and concerns

experienced by bakeries relative to accounting system. Lastly, it also aimed to

develop information material on accounting system for bakeries.

The researchers used the descriptive method of research design. The

survey questionnaire was the primary instrument in this study. Also, the

researchers underwent the process of construction, validation, administration,

and scoring. The researchers passed the self-constructed survey questionnaire,

which was validated by their thesis adviser, panelist, grammarian, statistician,

faculty, industry expert, and college dean. Subsequently, the researchers

proceeded with conducting the dry run survey administered in Lipa City. The

reliability test result of the dry run survey was 0.95. Afterwards, the researchers

proceeded with the actual survey. The respondents of the study were micro-

enterprise bakeries in Batangas City registered in the city office. The researchers
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conducted survey to the 76 bakeries registered in Batangas City and 48

questionnaires were retrieved.

Findings

After the analysis and interpretation of the data gathered, the researchers

were able to come up with the following findings:

1. The researchers found out that most of the bakeries in Batangas City were

sole proprietorship or those that were managed by one person. It had the

highest frequency of 42 or 87.5 percent, respectively. With regards to the

number of years in operation, most respondents were operating 5 years

and below with the highest frequency of 22 or 45.8 percent. In terms of

average monthly income, many of the bakeries had income of Php 20 000

and below with the highest frequency of 22 or 45.8 percent.

2. For the assessment of accounting system as to expenditure cycle,

conversion cycle, and revenue cycle, most of the bakeries stated that the

use of transaction cycles helps them in the operations of their businesses.

With regards to the expenditure cycle, its composite mean is 3.28 which is

interpreted as practiced. In terms of conversion cycle, the composite mean

is 2.97 which is interpreted as practiced. As to revenue cycle, the

composite mean is 3.34 which is interpreted as practiced.

3. It was revealed that when the respondents were grouped according to form

of business organization, in terms of expenditure cycle, the corporation

has the highest mean of 4.0000 which is interpreted as practiced and the

sole proprietorship has the lowest mean of 3.2600 which is interpreted as

practiced. In terms of conversion cycle, the corporation has the highest

mean of 3.6471 which is interpreted as highly practiced and the sole

proprietorship has the lowest mean of 2.9300 which is interpreted as

practiced. In terms of revenue cycle, the corporation has the highest mean

of 3.8182 which is interpreted as highly practiced and the partnership has

the lowest mean of 3.2909 which is interpreted as practiced. When the

respondents are grouped according to the number of years in operation, in

terms of expenditure cycle, bakeries which are operating for 11-15 years

has the highest mean of 3.4467 which is interpreted as practiced and the

bakeries which are operating for 6-10 years has the lowest mean of

3.0733 which is interpreted as practiced. In terms of conversion cycle,

bakeries which are operating for 11-15 years has the highest mean of

3.1471 which is interpreted as practiced and bakeries which are operating

for 6-10 years has the lowest mean of 2.7843 which interpreted as

practiced. In terms of revenue cycle, bakeries which are operating for 11-

15 years has the highest mean of 3.5606 which is interpreted as highly

practiced and bakeries which are operating 16 years and above has

lowest mean of 3.0909 which is interpreted as practiced. When

respondents are grouped according to average monthly income, in terms

of expenditure cycle, bakeries with an average monthly income of Php 50

001- 80 000 has the highest mean of 3.4286 which is interpreted as

practiced and bakeries with an average monthly income of Php 20 000

and below has the lowest mean of 3.2327 which is interpreted as

practiced. In terms of conversion cycle, bakeries with an average monthly

income of 80 001 and above has the highest mean of 3.1373 which is

interpreted as practiced and bakeries with an average income of Php 20

000 and below has the lowest mean of 2.8503 which is interpreted as

practiced. In terms of revenue cycle, bakeries with an average monthly

income of Php 50 001- 80 000 has the highest mean of 3.6753 which is

interpreted as highly practiced and the bakeries with an average monthly

income of Php 20 000 and below has the lowest mean of 3.1983 which is

interpreted as practiced.

4. It was shown in the study that the issues and concerns that were most

experienced by bakeries relative to accounting system were the lack of

knowledge in the proper accounting system and procedures related to

accounting policies are not properly communicated to employees and the

issue and concern that is least experienced by bakeries relative to

accounting system is the processes or procedures are not properly

practiced.

5. After reviewing the information derived in the study, the researchers

developed an information material to enhance the perception of bakery

owners in the maximization of usage of accounting system in their

businesses.

Conclusions

The following conclusions are drawn based on the interpretation and analysis

of data:
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1. In terms of business profile of the bakeries, the researchers found out that

majority of the bakeries in Batangas City were sole proprietorship or those

which were managed by one person, most of the respondents were

operating for 5 years and below and almost half of the bakeries had an

average income of Php 20 000 and below.

2. In assessing the accounting system of bakeries in terms of the

expenditure cycle, conversion cycle and revenue cycle, they were all

practiced.

3. The researchers found out that when the respondents are grouped

according to business profile, corporations, bakeries operating for 11-15

years, and those who have average monthly income of Php 50,000 and

above were assessed to have an effective accounting system.

4. The researchers concluded that the issues and concerns experienced by

the respondents start from lack of knowledge in the proper accounting

system because they were not familiar with this system, from this, another

problem arises.

5. The researchers conceptualized a Guide on Accounting System for

Bakeries that can assess the accounting system of bakeries, can identify

the areas for improvement, and can know the ways on how to improve

and sustain the accounting system.

Recommendations

Based on the previous conclusions and from the statistical test they

performed in the preceding chapters, the following recommendations were

directed to immediate parties concerned, who are the bakery owners and future

researchers.

1. The researchers of the study, first and foremost, recommend that bakery

owners should have a formalized accounting system which can assist

them to monitor their everyday transactions. They may improve their

existing system which can guide the operations of their business. They

may also become aware of the effects of having proper record keeping of

transactions that will eventually lead to vital management’s decisions.

2. The researchers recommend that the bakery owners may use the Guide

on Accounting System of Bakeries developed by them. This can help the

bakery owners to eliminate or at least reduce the issues and concerns

experienced by the bakeries.

3. Further or deeper study may be conducted focusing on the analysis on the

internal control system on the expenditure cycle, conversion cycle, and

revenue cycle.