THE USE OF ACCOUNTING INFORMATION AND DECISION-MAKING IN ORGANISATION
This study deals with the use of Accounting Information and Decision-making in organisation (A case study of Muxol Paint Company) One of the most important functions of management which is decision making has been described as a purposeful choosing from a number of alternative courses of action.
The management can only come up with a good decision if they were able to get a correct accounting information form the accountants as a result of this, there are the need for research to find out if managers actually provided this information to the mangers and if they are relevant in the decision making of the organization.
The following are stated problems
a.) Inadequate utilization of available account
b.) Inadequate managerial expertise
The project work in chapter two revealed all the accounting information needed by the management for decision making and the use and users of accounting information.
TABLE OF CONTENTS
Table of Contents
1.1 Background of the Study
1.2 Statement of Problem
1.3 Research Questions
1.4 Objectives of the Study
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Definition of Terms
2.1 Literature Review
2.1.1 The Concept of Accounting Information System
2.1.2 Functions and Users of Accounting Information
2.1.3 The Characteristics and Objectives of
2.1.4 The Decision Making Process
3.1 Research Methodology
3.2 Source of Data
3.3 Research Design
3.4 Research Population /Sample Size
3.5 Instrument Used
3.6 Data Analysis Techniques
4.1 Presentation And Analysis of Data
4.2 Data Analysis
Summary, Conclusion and Recommendations
1.1 BACKGROUND OF STUDY
Accounting can be defined as a system of collecting, recording and summarizing business and financial transaction and analyzing, verifying and report the results. (Olaoye 2006).
It is also a measurement and communication system to provide economic and social information about an identifiable entity to permit uses to make informed judgments and decision leading to an optimum allocation of resources and the accomplishment of the organisational objectives (Mbanefo 2007). Accounting information on the other hand can be described as a data that has been analyzed and transformed into information to enable users to make or take decision (Adepeju 2009).
Decision making has been described as a purposeful choosing from a number of alternatives. The need for a decision arises in business because a manager is face with a problem and alternative course of action need to be taken in order to provide solution to the problem.
Accounting information system in an organisation is an important machinery to improve the efficiency of the organisation and support its competitiveness through proving management with good financial information that will enhance making decisions regarding planning and other decision (Mohammed, 2009), the purpose of accounting records is to provide information about the economic affairs of an organisation that will enable mangers to plan and control the operation of the business in order for useful decision to be taken.
Accounting information is not only necessary for the evaluation of the past and keeping the present, it is also useful for planning the future of the enterprises, based on the above, it is necessary to note that only good and sound accounting information can lead to good decision and thereby enhancing the efficiency of the organisation.
1.2 STATEMENT OF THE PROBLEM
It has been observed that many organisation are faced with challenges on their accounting system due to the fact that adequate information is lacking in the system, books of account are not properly recorded and there is perpetration of fraud. These had caused setbacks to many organisations even to the extent that many have to wind up their operations.
Against this background, therefore, this study is set to examine whether accounting information can has impact on organisational decision making process.
1.3 RESEARCH QUESTIONS
The study examines Accounting Information and Decision – Making in an Organisation using Muxol Paints as a case study.
For the purpose of this research work, the following research question are considered;
i. What impact does accounting information have on decision- making?
ii. What effect does accounting information have on the achievement of organisational goals?
iii Does improper accounting record affect the accounting information of an organisation?
iv What is the managerial effect on accounting information and decision –making in an organisation?
v. Can accounting information enhance decision making?
1.4 OBJECTIVES OF THE STUDY
The broad objective of the research study is to examine accounting information and decisions making in an organisation
The specific objectives are;
1. To examine the impact of accounting information on decision – making.
2 To investigate issues in organisational accounting
3. To examine the challenges of organisational accounting system
4. To examine how accounting information can be derived or achieved in organisation.
5. To examine how correct, timely and consistence accounting information helps in improving the efficiency of operation.
1.5 RESEARCH HYPOTHESES
The following are the research hypothesis that will be tested for the purpose of this study.
Ho: Accounting information has no impact on decision making of an organisation
Hi: Accounting information has impact on decision making of an organisation
1.6 SIGNIFICANCE OF THE STUDY
The need for information is basic for concrete and explicit management decision to ensure the success and survival of an organisation and since the aim of Muxol Paint like any other business organisation is “profitability” Accounting information is indispensable to achieve this goal. Hence this research work studies how effective and efficient the instrument of good accounting information and decision making is in an organisation.
The significance of this study will enable Muxol Paint Company to improve in efficient and effective decision – making and eradicate the weal accounting systems by making sure that every staff in the account department is co – operative and fully conscious of his or her role in the department so as to produce good accounting information and enhance decision – making.
1.7 DEFINITION OF TERMS
ACCOUNTING:- Is the act of recording, classifying, summarizing, interpreting and communicating accounting information in a significant manner and in form of money transaction and events which are in part at least of financial character and interpreting the result thereof for decision – making.
ACCOUNTING INFORMATION:- These are data that have been processed in accounting manners for the purpose of decision – making.
ACCOUNTING CONCEPT:- These are the fundamental unchangeable pillars and foundation of accounting building blocks of accounting framework.
ACCOUNTING THEORIES:- Body of accounting knowledge upon which the teaching and practice of accounting are based.
ACCOUNTING PRINCIPLE:- These are rules and connection which have been adopted as a general guide to action by the accounting profession.
ASSETS:- Valuable things owned by an organization. It may either be tangible or intangible assets.
BOOK – KEEPING:- This is concerned with the collection and accurate recording of the financial data.
CONTROL AND COORDINATION:- A process of ensuring that the cause of a action is maintained and that desire aims are achieved. This is done through the use of budget and actual data.
COST CENTRE:- This is the smallest division where cost are collected. It is defined in terminology as a location, function or items of equipment in respect of which cost may be ascertained an related to cost units for control purpose.
FINANCIAL STATEMENT:- This is the statement that summarized various information of entity’s financial affair.
STEWARDSHIP ACCOUNTING:- The practices by which productive resources owned by one person or group of managed by another person or group of persons.
the impact of accounting information on decision making process pdf
the role of accounting information in management decision making pdf
the relevance of accounting information to management decision making
role of accounting information in decision making
the impact of accounting information system on decision making process
uses of accounting information in managerial decision making
how accounting information system is helpful in decision making
financial accounting information as an aid to management decision making pdf