Accounting Information As A Basis For Managerial Decision-Making

Download project materials on Accounting Information As A Basis For Managerial Decision-Making from chapter 1 to 5 with references aad appendix

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Management is the aspect of a business which relates to making policies, developing programmers, setting standards, applying to financial, physical, human resources, maintaining plant and equipment, supervisory, labour and clerical forces at a maximum efficiency. In a nutshell, management involves setting goals and directing people and other resources in the accomplishment of the enterprise goals.

In discharging its inherent duties and responsibilities, management the task of choosing every part of an organization. For example, from a list of proposed capital expenditure the management must select those that provide the most promising profit opportunities. Decision making is very basic that no management function can be performed without it. It is a continuous process that cut across all organizational activities. In word, decision is needed in planning, organizing, actuating, staffing directing and control.

It must, however, be noted that any decision requires an information input. The decision will then be made in light of information available. Thus, the quality, relevance, sufficiency and accuracy of such information are important. Sound decision can only be made upon sound and accurate information, accounting or non-accounting quantitative or non-quantitative.

Nevertheless, every organization accounting information system such system consists of people, machine, procedures, controls, document files and reports. Their basic purpose is to provide operating and management personnel with information which can be used to effectively and efficiently execute the mission of an organization.

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Accounting information has always been relevant for a variety of purpose. It provides financial information to management which utilize in planning and controlling business activities. Management however, requires that accounting information to be as effective as possible in order to evaluate and control business operations. Many accountants have been so preoccupied with conventional financial accounting presentation that they have not concentrated on developing accounting managerial tools.

Accounting information influence many decision but little is known about the way in which this influence is exerted in particular classes of decision. Thus additional information management want as a basic for making decision, rather than on the form of conventional accounting presentation.

Since it has always been the objective of the internal accounting to generate useful information for management, this research attempt to have a look at the influence and important of accounting information provide by internal accountants on rational management decision.

1.1STATEMENT OF THE PROBLEM

It is a fact that decisions have to be made in every stage of human endeavor. The decision my sometime be made in a suitable where all information needed to made the right decision are available or no information at all or even in conditions where information are not adequate in this case, there will be always be on affect where right or wrong and wrong decision is take carrying at conclusive information in decision making some importance techniques are applied which could be wrong and thus create problem as a result of inadequate they include.

1. Information: Decision to do what one feel, right which night not be the best in all situation
2. Experience: Decision on a particular course of action based on ones past experience which not be suitable to the present situation.
3. Authority: Decision is made by the boss based on the nation that knows everything and even because of the important position he holds. This is not best at all.
4. Voting: Sharing of responsibility for the decision (back passing) that is trying to play safe.An Appraisal of Internal Control System in Manufacturing OrganizationAn Appraisal Of Cases Of Corporate Mergers And Acquisition In Nigeria

Although these method may sometimes without, it could be noted giving a the information requires for making decision are not exclusive responsibly of an individual Hence adequate information must be collected analyses and interpreted clearly to assist in making decision which will not entails a waste of resource at any sort. To be can did the ability to make correct decision is usually hindered by the Nigeria economic such as government policies instability and inflationary tend?

Therefore every management in an organization must be able to identify the straight and opportunities to explored and the weakness and threat to be taking and avoided.

1.2    OBJECTIVE OF THE STUDY

The aim and objective of accounting system is to provide the relevant information with the aim of making the best decision in an organization.

The objects of research work and;

Many accountants are now showing an increasing relate to a circumstance on this and adds to ones store of knowledge.

Though the term “data” and “information” are used interchangeable, they do not have the same meaning Data are “raw material” such as fact symbols and event which is processed and turned into information such processing including synthesis classification and other manipulation that make the data meaningful it recipient

1. To review the role accounting information plays in the management decision making process with special reference.
2. To determine if the accounting information generated by accounting department assist in meeting the objective of the organization.
3. To examine the research for employing accounting in management decision – making process.
4. To proffer suggestion that will assist management in using accounting information in the decision making process.

1.3 SIGNIFICANCE OF THE STUDY

In an organization managers at all level make decision this decision makes the organization from achievement its corporation objective. All decision however, have some influence large or small, positives or negatives on performance

This manager must develop decision making skills. The quality of managers decision is the yard stick of their effectiveness and of their worth to the organization. Management appraised and rewarded on the basis of the importance quality and result of their decision.

Finally, the accounting information provided will be needed by the enterprise itself the government investors and what a view.

1.4  SCOPE AND LIMITATION

The scope of this study encompasses a brief investigation into the influence and importance of accounting information provided by internal accountants on managerial decision. The study itself is carried out using Nigeria machine took limited km8, Osogbo Ikirun road, Osun State as a case study

An attempt to look into the various decisional levels is also made, the strategic level, the technical level and the operational level of decision-making. An understanding of analyzed hypothesis is made to ascertain the importance of some theories to the finding of this research and to enable reasonable conclusion to be reached.

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