The Impact of Accountancy Information on Management Decision Making
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are as follows;
1. To determine whether there has been a problem in generating and utilizing accounting information necessary for management decision-making.
2. To ascertain the extent to which accounting information generated by accounts departments has contributed to the decision-making process.
3. To ascertain the extent accounting information has effectively performed or fulfills the basic roles of cost minimization, proper allocation of scarce resources, and improvement in production.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Accounting is often said to be the language of business in the business world to describe the transaction entered into by all kinds of organizations. Accounting terms and ideas are therefore used by people associated with business whether they are manager, owners, investors, bankers, lawyers or accountants.
Accounting extends far beyond the actual making of records. Accounting is concerned with more than the record making phase. In particular, accountant should be interested in the relationship between the financial results and the events which have created them. He should be studying the various alternatives open to the firm, and be using his accountancy experience in order to aid the management to select the best plan
of action for the firm.
Accounting has been defined broadly as “the process of identifying, measuring and communicating economic information to permit informed judgements and decision by users of information”. On the other hand it can also be defined as “a system of principles and techniques which permits a series of inter-related activities that form a progression of steps, beginning with observing, then collecting, recording, analysing and finally
communicating information to its users”. Thus the accountant’s task is to inform raw data into information. Accounting
information is therefore a data organized for the special purpose of decision making.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter discusses the various methods by which data are collected and analysed in the process of carrying out this research work by research methodology. This means the methods and designs used by the researcher in the collection and analysis of the data. This chapter will expose the design of the study, population of the study, sampling design and technique, source of data or others are instrument for data collection and method of
data analysis.
RESEARCH DESIGN
A research design is the plan for a research project which provides guidelines that directs the researcher toward solving the research problems. It is the approach to be used in conducting a specific enquiry. Two basis approaches were used in the study.
They are the survey approach and the case study approach.
The survey approach studies both large and small population by selecting and studying sample chosen from the population to discover the relative incidence and also the distribution and interrelations of variables.
A case study approach was also used to explain the “impact of accounting information” on decision making process which the researcher got their information from some selected manufacturing firm like Emenite, Anammco,
SOURCE OF DATA
The study relied heavily on both primary and secondary source of data
PRIMARY DATA
The primary data used in this approach was obtained from a sample drawn from the staff of some selected manufacturing firm. All these were done through the questionnaire distributed, direct observations and interviews with the staff of the organisation. This is directed at achieving a more balance research result and conclusion
POPULATION OF THE STUDY
Out of the population of 200 staff, the researcher judgementally selects 133 staff, as the target population.
The target population is involved directly with decision making all staff of Emenite, Anammco.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
In this chapter, the researcher analyses and interprets the data collected from the respondent through the questionnaire and oral interviews.
The questionnaire raised and analysed in this and issue to the researcher work 133 were raised and issued to the respondents.
The presentation and representation of the information will be based on 133 questionnaire collected below.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
SUMMARY OF FINDINGS
The major aim of this research was to find out to what extent does managements of some select manufacturing firm makes use of accounting information in decision making process. After a careful analysis and interpretation of data generated in the course of this research work, the following findings were made in order to confirm the null or alternative hypothesis stated in this study.
Firstly, there are problem in generating and utilizing accounting information necessary for management decision making processes.
Secondly, accounting information generated by accounts department has contribution in decision making process.
Furthermore, accounting information has improved effectively, the basic roles of cost minimization, proper allocation of scare resource and the
improvement of production.
Finally the research also discovered that the selected manufacturing firms made use of cash flow statement, profit and loss account etc. in the planning of the operations and extending credit to other company.
CONCLUSION
The objectives of the firm differ from one organisation to another. Based on the statement of the problem stated in chapter one, the research
concluded that the application of accounting information makes the difference between failed banks, enterprises, corporate bodies on one side and the successful one on the other side. For the improvement in the application of accounting information to be sustained, adequate understanding of the difficulty in the application of accounting information is very essential. If this is applied as at when due failure in business both private and public sectors will be highly minimised.
Accounting information on decision making process has helped in the proper allocation of resource such as material, money, machinery and man.
In conclusion, the failure of firms may not be due to non- generation of accounting information but they will be used effectively, efficiently and appropriately utilized in the accounting information generated in an organisation.
RECOMMENDATIONS
Accounting information is very essential to the users’ for their development, especially when it extends to decision making. In view of the above the
following recommendations were deemed necessary.
Efforts should be made at employing professional staff with transparent honest ways of performance and also, due punishment should be given
to fraudulent staff.
Seminar/ training should be given to staff of accounting department to enable them specialize more on the field of accounting.
The stakeholder, investors and other user should be meeting at interval so as to assist the management in the achievement of the organisation goals.
Use of modern devices like computer should be introduced to the staff to enhance efficiency and effectiveness in decision making.
Special panel or auditor should be introduced to ensure the accuracy of the accounting information so that the user should not be deceived.
The accounting information generated should be readily available for decision making. The qualities of accounting information which include
timeliness, clarity, relevance and accessibility of the information should be a guild in providing accounting information
Finally accounting information should be seen as an important tool for decision making process in an organisation and more encouragement
should be given to staff in the performance of their duties. This will enhance efficiency and effectiveness of the accounting information in the manufacturing firms.
BIBLIOGRAPHY
- Adewoye S O (2004). Basic statistics for engineering economics and management, Lagos : Olakayode Ojo commiunication, Enterprise.
- Akuwudike H.C & Ugwu O.I (2000). Management Information system for tertiary institution, Enugu : Gostak printing and publishing Co. Ltd.
- Anderson A.L & Ranum .D (2005). Information analysis in management accounting, New York ; John Wiley and sons Inc.
- Ani W. U (2005). Government and public sector accounting, Enugu : Immaculate publication ltd.
- Collins D. (2004). Management and costing accounting sixth edition, Singapore ; Senglie press.
- Eugene C.G and Richard S.L (2006). Statistical quality control, Tata : McGraw – Hill publishing Company Limited.
- Lucey T. (2003). Management accounting fifth edition, London : Ashford colour press.
