An Evaluation of the Effectiveness of Debtors’ Management Systems: a Case Study of Puzey and Payne

1715 Words Dec 19th, 2012 7 Pages
-------------------------------------------------
AN evaluation of the effectiveness of debtors’ management systems:
-------------------------------------------------
A CASE study of puzey and payne INTRODUCTION

1.0 Introduction

This chapter briefly provides the background of the study on the effectiveness of debtors’ management systems at Puzey and Payne, Harare. In this chapter, the researcher rationalized the topic, clarified the objectives, research questions, significance of the study, delimitations and limitations of the study as well as the background leading to the study. 1.1 Background to the Study

Puzey and Payne realizes its profits from cash and credit sales of motor
…show more content…
Therefore this study sought to address the poor management of debtors to transform the organisation back on track of market leadership through alignment of performance evaluation measurement and long term strategies.

1.4 Purpose of the Study

The objectives of this study were: i. To establish if the debtor management systems in place are effective. ii. To find out if thorough assessment and strict selection are done before credit granting decisions. iii. To investigate if the company offers discounts to its customers and to find out how it punishes those customers who do not settle their debts on agreed terms. iv. To assess whether proper accounting procedures on debtors’ control accounts are being followed. v. To find out ways in which Puzey and Payne assesses credit worthiness of a customer.

1.3 Research Questions

i. Are the debtors’ management systems in place effective? ii. Does the company practice thorough assessment and strict selection before credit granting decisions? iii. Does the company offer discounts to its customers and how does it punish those who do not settle their debts on agreed terms? iv. Are there proper accounting procedures on debtors’ control accounts being followed? v. How does Puzey and Payne assess credit worthiness of the customer?

1.5 Significance of the Study

1.5.1 To the Researcher: i. This project should enable the
Open Document