3 Basic Accounting Information System Principles

Three basic principles of accounting information system are cost-effectiveness, useful output, and flexibility.

Efficient and effective accounting information system depends on these basic principles.

Principles of Accounting Information System

Principles of Accounting Information System

  1. Cost-effectiveness,
  2. Useful Output/ Necessity,
  3. Flexibility.

Cost Effectiveness

Accounting information must be cost-effective.

It must outweigh information cost. If the accounting information system is cost-effective, it can provide desired output and if flexible, it can contribute much in achieving the objective of a person or an organization.

Useful Output / Necessity

Accounting information system must be able to provide a necessary result.

Working information must be understandable, relevant, reliable, timely and accurate. The designer of information system will always take the necessity and knowledge of accounting information users into consideration.


In accounting information system there must be provision for inclusion of changed information needed by different users.

This system must be adequately flexible so that it can meet changed demand.

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