Least Common Multiple and Multiplicative AHP Methodical Approaches to Accounting Software Selection

Abstract: The paper outlines a three-phase methodology for assessing and choosing packaged accounting software, emphasizing the preference for off-the-shelf solutions. The process involves creating a shortlist using a non-compensatory choice model, followed by a detailed analysis using least common multiple (LCM) method and multiplicative analytic hierarchy process (MAHP) method in the multiple criteria decision making (MCDM) theories, and ultimately confirming the selection through a “test drive”. The methodology is exemplified in the development of a fixed asset system for a medium-sized hospital, covering technical requirements, functional accounting specifications, documentation, and training needs.

Key words: multiple criteria decision making, fixed asset system, elimination by aspect choice model, least common multiple

JEL codes: C65