This research work is on the impact of accounting information on decision making process, with a particular reference to the Anammco LTD Enugu. The research was geared towards understanding the operations in Anammco Ltd with an emphasis on decision making process. The problems, prospects and implications of the programme were also examined. The objective of the study is therefore to expose to various departments the proper way to embark on effective accounting information. Forty questionnaires were distributed of which thirty were completed and return using stratified random sampling. Also related literatures dealings with the impact of accounting information were examined. Some personnel of Anammco Ltd were interviewed, and secondary data were obtained from books The data collected were later analysis and interpreted. From the study, it was discovered that accounting information is an important aspect of management policy, for higher productivity, efficiency and increased performance, though it involves a huge financial obligation.
Various organizations should therefore try and embark on accounting information on decision making for successful running of their organization.
This research work on the impact of accounting information on decision making process, a study of Anammco LTD Emene is geared to X – ray the impact that accounting information exert to improve the decision making process of a company with reference to ANAMMCO LTD ENUGU. Decision making is simply making a choice out of several alternative or it is the process of studying and evaluating two or more available alternatives leading to a final choice.
1.1 BACKGROUND OF STUDY
With the view of being independence, Nigerians had the view of a better tomorrow. We were able to feed ourselves and provide ourselves with social, economic and political endeavor. Subsequently our hopes seemed unattained which made the country becomes as strong as the Iroko tree. The idea had, was that it would be worst for Nigerians to our economic adverse situation raising its ugly head. This economic crisis has made financial institutions industries (large or small scale) go into distress at alarming rate and those who service this financial problem has form the onset prepared his/her firm against this ugly situation by mapping out all kinds of straggles example increase in price of this goods, adopts favorable production tool, engage in marketing etc.
Any business, firm, establishment that wants to survive this present day bad economy in Nigeria must make a right decision, map out a good and competitive strategies to carry out his/her business successful. The price of any convincible item from garri and bread to electronic and educational items not to talk of the life wire of every man standing that is petrol which has presently made life unable for the adjust.
The economy is really in direstacts, the era of mile thumb is employing it, is a sure way final abysmaky. Organizing human and natural resources intricately are the problems of various organization, effective planning and decision making process. Other factors such as stag flatiron taxation, economic and political empowerment this research accounting, cost accounting as well as management accounting. There are other branches of accounting that would be favorable “Financial Accounting” is that part of accounting which covers the classification and recording of actual transactions of an entitling in monetary
(A CASE STUDY OF ANAMMCO ENUGU)
A decision is essential for an organization’s survival and development, since it is prior to any action (Socea, 2012). A manager is an individual responsible for an organization or a set of entities. Any manager is invested with formal authority in accordance with his assigned statute. In their role, managers have to make effective decisions to keep the organization flourishing. Hence, as long as there is management, there will be the “problem” of how to manage better. Therefore, as Greenberg & Baron (2008) say, to make decisions is one of the most important and critical activities of organizations. Since, organizations as systems build themselves up by making decisions. Every made decision creates and leads to a new decision. These decisions might involve the strategic direction of the organization or simply just deal with the day-to-day activities of employees.
Thus, management is constantly confronted with the problem of alternative decision making, especially knowing that resources are relatively scarce and limited. This necessitates doing the right things, the appropriate use of resources and the need to set different things in the order of importance. However, as we live in an age of data abundance. Business managers have today access to far more data than any previous generation of managers, and that is transforming the way many business decisions are made.
Therefore, it is pertinent that quality accounting information is made available for proper and precise decision- making, maximization of profitability and optimal utilization of scarce resources. Because accounting information is not only required for evaluation of the past and keeping the present on course; it is useful in planning the future of the organization. (Nnenna, 2012) Given these conditions, the accelerating pace of business changes and the significant amounts of information available to businesses using modern technology, the challenge is to filter out useful information and present it in a manner that makes it useful for managers.
Main Research Question
- What are the effects of accounting information on the management decision making?
Specifics Research Questions
- What type of decisions are made in Anammco LTD Enugu based on accounting information?
- What are the characteristics that must be provided in the accounting information used by Anammco LTD Enugu management in decision making?
Main Research Objective
- To examine the effects of Accounting Information on Management decision making in Nigeria, Anammco LTD Enugu in in particular.
Specifics Research Objectives
- To study the effect of reliability of accounting information on decision making in Anammco LTD Enugu.
- To study the effect of comparability of accounting information on decision making in Anammco LTD Enugu.
Ho1: The reliability of accounting information has no effect on the management of Anammco LTD’s decision making.
Ho2: The comparability of accounting information has no effect on Anammco LTD Enugu’s management decision making.
This study will be of immense benefit different types of stakeholders by improving their organisation performance, such stakeholders are financial analysts, companies, investors and other financial organisation by widening their knowledge on the effects of accounting information on management decisions making. The study will make organisation (Anammco LTD Enugu) to appreciate the importance of sound accounting information in the provision of information necessary for decision making.
The study also helps researchers, practitioners and also gives a major contribution to the body of knowledge through suggesting areas that require improvement. It also contributes to the body of literature on financial accounting information and making of decisions.
Academicians in scholars in the commercial branch like management and accounting will be able to access this study as reference (as a resource material and an addition to existing literature or knowledge) to students in this noble institution and other school who may be interested to embark on further research study. They will be able to add value on the gaps identified by this study.
The suggestions and recommendations from the study are useful to the management of the Anammco LTD Enugu, since they provide clear picture on the effects of accounting information on management decisions making.
Last and famous, this study will enhance and broaden the researcher in the field of interest so as to better understand the importance and the effects of an accounting information on the different management decisions made and also a way of proving lies and to support truths.
This study will be limited to a geographical entity known as Nigeria and specifically Anammco LTD Enugu.
There are some limitations encountered by the researcher in the process of this research which limited the scope to only access bank plc branches, some of the limitations are as follows;
- Time factor
The time for the research is not enough to carry out intensive study since some of information is not easily and quickly available. Therefore, this research will have to use weekends to collect, analyse and interpret the collected data.
- Lack of enough fund
The fund provided for the research is not enough to meet all expenses like transport cost, meal allowance, accommodations, photocopies and stationeries expenses. Hence the study will be conducted using the fund provided by the sponsor(parents) and the researcher own fund.
- Data Confidentiality
Most of organizations are not ready to provide their data. So Anammco LTD Enugu may not provide adequate and sufficient data. Therefore, the researcher convinced management that data provided would only be used for the research purpose only, and will not be disclosed to anyone who is not concerned.
- Lack of experience
We have to underline also that no one of us has an experience before in conducting a study in this extent. For us it was hard to conduct this bachelor project writing, especially the analysis was very difficult to do. Fortunately, we got some help and support. We hope that this work is pertinent.
- Unwillingness and non-response of employees
Occasionally the respondents decided to give out data that did not correspond to the study as well as delayed on filling questionnaires during data collection. This study notified respondents that the data collected would not be used for any other purpose.
So, they became cooperative.
This study is made up five chapters. Chapter one introduces the work with background information on accounting information and decision making management, problem statement, research question and objectives of the study. This chapter also brings out the research hypothesis, significant of the study. Chapter two is made up of literature review outlining the conceptual, theoretical and empirical review. Chapter three brings out the study and it is based on methods and procedure. Chapter four present the discussion analysis of the result. Finally, chapter five summarizes the major findings, conclusion and recommendations.
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