Ibm Business Related Problem Solution
Business Related Problem Proposal
During the past few years, a number of companies have had financial problems because of accounting errors. In some of these instances, companies have had major financial issues that the company could not recover from. Recently, management at IBM has decided to start tracking the number of errors in the accounting department. The number of errors will be tracked per accountant and yearly appraisals will reflect the error rates. Team A will take a random sampling of data from a specific accountant department and evaluate the output. The test statistics will be used to determine if the hypothesis of the IBM accountant errors is true.
Analysis of problem and variables
Inter-company accounting at IBM has many functions and reports, which require accountants to enter data manually. Monthly reports must be done for each country, for any accounts payable and accounts receivable items aged greater than 60 days. The key indicator sheet reports monthly, the amount of items on account reconciliation for non-current accounts, and the variance, if any, for current accounts (the difference between our accounting processing entry system and the ledger). Payments and receipts are entered manually each month and can reach up to over 100 for each respectively. Vouchers are entries made directly to the ledger and have several facets where errors can occur. The accountant catches some of these errors, but some are not. Some are found by the department manager, who tracks error occurrence by employee for use in the employee appraisal process. Other errors, such as the ones on the A/P and A/R factsheets, and Key Indicator sheets are consolidated on a department level, then on a region level, then a company lev ...