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PROJECT TOPIC AND MATERIAL ON ACCOUNTING INFORMATION AS A BASIS FOR MANAGERIAL DECISION-MAKING
The Project File Details
- Name: ACCOUNTING INFORMATION AS A BASIS FOR MANAGERIAL DECISION-MAKING
- Type: PDF and MS Word (DOC)
- Size: [84 KB]
- Length:  Pages
TABLE OF CONTENT
Title page i
Table of content vi
1.1 Background of the Study 1
1.2 Statement of the Study 3
1.3 Objective of the Study 5
1.4 Significance of the Study 7
1.5 Scope and Limitation 8
1.6 Definition of Term (Option) 8
2.1 Management Information System 12
2.2 Accounting Information System 16
2.3 Decisional Levels 21
2.4 Managerial Decision-Making Organization 23
3.1 Research Design 26
3.2 Population of the Study 26
3.3 Sampling for the Study 27
3.4 Source and Method of Data Collection 28
3.5 Methods of Data Analysis 29
3.6 profile of the Case Study 30
PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation 33
4.2 Analysis of Data 33
4.3 Testing of hypothesis 43
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 45
5.2 Conclusion 46
5.3 Recommendation 47
1.1 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.
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.
1.2 STATEMENT 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.
- Information: Decision to do what one feel, right which night not be the best in all situation
- Experience: Decision on a particular course of action based on ones past experience which not be suitable to the present situation.
- 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.
- Voting: Sharing of responsibility for the decision (back passing) that is trying to play safe.
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.
1.3 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.
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
Decision making is normally described as a conscious choice between at least two alternative decisions making always implies a choice.
If a choice doest not have to be made to solve a problem on individual is not actually involved in a decision making situation. For example consider the management who want to determined when his secretary leave for lunch, this would not be necessarily decision making situation since a choice is not involved.
Instead the problem might be on a matter of obtaining the correct information and the decisional problem which could appear if the manager has to decide on how to obtain the desired information. Thus, decision making involves the selection of a course of action from among two or more possible alternative in order to arrive at a solution to a given problem.
Information System: Formal and Informal
A system or a set of element or components that interact to produce a cohesive unit.
An information system as a set of element may take interest in understanding the relationship between accounting and decision making in business.
The interest is being show in whether or not, the alternative methods affecting decision making.
The research therefore proposes to determine the bearing of accounting information on managerial decision in relation to other nor-accounting information inputs.
The objects of research work and:
- To review the role accounting information plays in the management decision making process with special reference.
- To determine if the accounting information generated by accounting department assist in meeting the objective of the organization.
- To examine the research for employing accounting in management decision – making process.
- To proffer suggestion that will assist management in using accounting information in the decision making process.
1.4 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.
1.5 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 Kam Wire Company Limited Ilorin 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.
1.6 DEFINITION OF TERM (OPTION)
In order to acquire a greater understanding of this research work, a preliminary definition of the various key terms and concept is necessary. These definitions are:
Accounting is a measurement and communication process designed to provide useful information.
This process includes identifying, recording, classifying, summarizing and interpreting business transaction and event.
The statement of basic accounting theory (1966) gives a broad definition of accounting as the process of identifying, measuring and communicating economic information to permit informed judgment and decisions by users of information.
DATA AND INFORMATION
Information is simply added knowledge. It is any fact, data advise observation or perception that relates to a circumstance or thing and ads to ones store of knowledge.
Though, the term “data” and information are used interchangeably, they do not have the same meaning. Data are “raw materials” such as fact, symbols classification, averaging addition subtraction, multiplication and other manipulation that make the data meaningful it recipient.
Decision is normally described as a conscious choice between at least two alternative decisions making always implies a choice.
If a choice does not have to be made to solve a problem, an individual is not actually involved in decision making situation.
For example consider the managers who want to determine when his secretary leaves for lunch.
This would not be necessarily decision making situation since a choice is not involved. Instead, the problem might be on a matter of obtaining the correct information and the decisional problems which could appear if the manager has to decide on how to obtain the desired information.
Thus, decision making involves the selection of a course of action from among two or more possible alternative in order to arrive at a solution to a given problem.
INFORMATION SYSTEM: FORMAL AND INFORMAL
A system or a set of element or component that interact to produce a cohesive unit an information system is characteristically a loosely structured arrangement.
It may consist contract within the organization through which messages are passed or it may consist of noted mace by an executive as he reads a journal.
These systems are informal because they are not officially recognized by an organization and their behavior is not predictable.
The formal system has no established data selection criteria.
A formal information system is a set of elements working together under a well defined set of operating rules of guideline to produce information.
A formal system has clearly stated data selection criteria, a logical data classification and storage system and out put specifications.
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