DefinePK

Abstract

The purpose of this study is to evaluate how the influence of enterprise resource planning and accounting data quality on the effectiveness of cost control with accounting information quality as a mediating variable. Data were collected through a survey method from 100 respondents who works as accounting staff in the accounting department and accounting manager in production units of oil palm plantation companies in Indonesia. Respondents were selected from companies that have implemented the Enterprise resource planning system in their companies. So this ensures that the respondents have understood the work process in the Enterprise resource planning system. We examined hypotheses analysis method by using  structural equation modeling-partial least squares (SEM-PLS). The findings of this study reveal that Accounting Data Quality has a positive effect on Accounting Information Quality. Enterprise Resource Planning Effectiveness system has a positive effect on Accounting Information Quality. Also, Enterprise Resource Planning  Effectiveness has a positive effect on Cost Control Effectiveness. Furthermore,  Accounting Information Quality significantly mediates the relationship between Accounting Data Quality and Cost Control Effectiveness.  Accounting Information Quality significantly mediates the relationship between Enterprise Resource Planning Effectiveness and Cost Control Effectiveness. This study emphasizes that the importance  on using technology especially ERP system to integrate business processes.