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Download the complete Accounting project topic and material (chapter 1-5) titled The Impact of Accountancy Information on decision making process here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.

 

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Download the complete Accounting project topic and material (chapter 1-5) titled The Impact of Accountancy Information on decision making process here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.

 

PROJECT TOPIC AND MATERIAL ON The Impact of Accountancy Information on decision making process

The Project File Details

  • Name: The Impact of Accountancy Information on decision making process
  • Type: PDF and MS Word (DOC)
  • Size: [778 KB]
  • Length: [81] Pages

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY.
At independence, Nigeria joined the committee of nation with the
hope for a better tomorrow. We were able to feed ourselves and
were of course almost self-sufficient. Subsequently our hopes
seemed unattainable. We seem to be going deeper and deeper
into the woods. The consensus is that it has been bad for Nigeria.
Due to the adverse economic condition prevailing in the country
many businesses have closed, shops and even financial
institutions are being declared distressed at alarming rate.
Businesses that are yet to be submerged or that want to stay
afloat employ all kind of strategies. Some increase price, adopt
promotional tools, engage in aggressive marketing etc. whereas
others goes for an odd combination of activities and even undergo
different kind of small business to survive.
Any business or individual that wants to survive must make
the right decision. The era of mile of thumb is gone; employing it
is a sure way to fail absurdly.
The price of any conceivable item from garri and bread to
radio and book not to mention petrol has been soaring in
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geometric proportions over the year. The economy is truly in
distress. These compounds and complicates intricate are the
problem of the organisation vis-à-vis effective planning and
decision making processes. Other factors such as stagflation,
taxation, economic and political problem are the major problem
which affects information and decision making. The future
orientation is what most company and bank get from making
accounting decision .the computation and interpretation of
analytical ratios from financial statement enable bank to
determine their operation trends and provide a basis for
management decision making. Other users of financial analysis
are used in making financial decision and achieving the goal of
sustainability determines compliance with regulatory
requirements. Financial analysis is an investment that has
positive return in the future on how decision will be made, how to
manage the finances to achieve the strategic goals of the
institution through decision making.
Many people think that accounting as a highly technical field
which can be understood only by professional accountants
actually nearly everyone practices accounting in one form or the
other. In modern times, management require a wide variety of
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information to successfully accomplish its aim and objectives.
This information is mainly determined by the element of
uncertainty about the future and lack of knowledge about the
present. Some of these decisions are of strategic importance
having a large impact on the business, others are routine
operating decision. Therefore accounting information is based on
laws and regulations governing the handling of accounting report
contained in the financial reports of organisation.
Making the right decision depends on the possession of
appropriate, accurate and up to date information provided and
presented in a meaningful way. This study set out to examine the
contribution of sound accounting system in providing the
management with financial and other information basis for
dealing with decision problems that arises from their
organisational operations.
1.2 STATEMENT OF THE PROBLEM
Basically, the nature of manufacturing business compels it to
carry out a great deal of book-keeping records based on
accounting principles and information provided with the
perpetual increase in the number of consumer of manufactured
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products, it has become necessary to devise a systematic mean in
handling the resultant book-keeping and accounting activities.
A lot criticism has always been made about the service of the
organisation, consumers complain of low quality product while
employers complain of lack of promotion inadequate salaries,
lack of training etc.
Furthermore, the major challenge facing every financial
institution\ business, organisation of today is market relevance.
On-going fundament at changes in the global politics, economy
and emerging competitions particularly challenges proper and
adequate contemporal accounting information for management
decision making. The company itself tries to coordinate all these
challenge effectively and efficiently so as to minimize any
anticipated and unanticipated pitfalls. If a sound and effective
accounting system is applied property by the manufacturing
organisation, the difference will be clear.
Improper attention to the accounting system and handling of
accounting information has given birth to the under mentioned
problems.
Poor planning
Result to poor decision making
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Poor organisation and control of business activities and
unsatisfactory service to its customers.
Poor decision making in administrative activities of the
organisation.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study are as follows;
1. To determine whether there has been problem in generating
and utilizing accounting information necessary for
management decision making.
2. To ascertain the extent in which accounting information
generated by accounts departments has contributed in
decision making process.
3. To ascertain the extent accounting information has
effectively performed or fulfils the basic roles of cost
minimization, proper allocation of scare resource and
improvement in the production.
RESEARCH QUESTION
1. Are there problem in generating and utilizing accounting
information necessary for management decision making
process?
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2. To what extent does accounting information generated by
accounts department contributed in decision in making
process?
3. To what extent does accounting information has improved
effectively performed or fulfil the basic roles of cost
minimization, proper allocation of scare resource and
improvement in the production?
RESEARCH HYPOTHESIS
NUMBER ONE
Ho There are problem in generating and utilizing
accounting information necessary for management
decision making.
H1 There are no problems in generating and utilizing
accounting information necessary for management
decision making.
NUMBER TWO
Ho accounting information generated by accounts department
has not contributed in decision making process.
H1 Accounting information generated by accounts
department has contributed in decision process.

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NUMBER THREE
Ho Accounting information has not improved
effectively performed or fulfil the basic roles of cost
minimization, proper allocation of scare resource and
improvement in the production.
H1 Accounting information has improved effectively
performed or fulfil the basic roles of cost
minimization, proper allocation of scare resource and
improvement in the production.
1.6 SCOPE AND LIMITATION OF THE STUDY
The research cannot treat all aspect and kind of accounting
information because the field is simply too wide. So only those
relevant to these studies were dealt with as per need- ratio
analysis, cost-volume- profit analysis, absorption and marginal
costing, the contribution margin standard costing and variance
analysis, linear program.
The availability of correct and up to data is not easy, even
when available; one still encounters wholly unnecessary
bottlenecks due to our socio – cultural background vice versa
disclosure of information and bureaucracy. So this constituted
an impediment to this research work.
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Financial and time constraints were seriously encountered
by the researcher. Computational procedures of various
accounting information or tools are outside the scope of the work.
However, those deemed necessary may be treated.
It is impossible to cover all the companies, firms and other
business outfits in Nigeria
As a sample of the two companies in Enugu state were scheduled
and inferences made from these.
Though deliberate effort is being made, to have a work wile
study with sufficient validity and reliability. This work should not
be viewed as a final solution to impact of accounting information
on decision making process. There are limitations on resources
for reference purposes especially responses on collection of data,
many respondents give bias responses probably because of job
protection, officer’s name and image protection, personal
reluctance, unnecessary fear of legal implication and so forth.
1.7 SIGNIFICANCE OF THE STUDY
This research study will help to maximise the beneficial impact of
accounting information on the decision making process of an
organization. This boosts the profitability of the organization as
well as ensuring its continuity as a business entity.
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It will help in the efficient allocation of scare resources that have
alternative being use as well as increase productivity thereby
uplifting the standard of living. It will review the improvement in
the organization or company handling the accounting
information and show equally the ways through which
improvement could be accomplished.
In fact, all interested groups like shareholders, employers,
investors, creditors, government etc will benefit immensely.
This project will equally serve as a reference to student who may
be interested to embark on a research of this nature.
1.8 DEFINITION OF TERMS
EFFETIVENESS: The total or actual interest paid or earned in a
year, expressed as a percentage of the principal amount at the
beginning of the period.
EFFICIENCY: A measurement of the ability of an organization to
produce and distribute its product. In accounting terms it is
qualified by a communism of the standard hours allowed for a
given level of production and actual hour taken.
ACCOUNTING INFORMATION: This is a system designed to
obtain the financial position of an organization as at the end of
the period.
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INFORMATION: Is a processed data used in obtaining detailed
data about a particular person, thing or place.
LEVERAGES: They are used by companies of its limited assets to
guarantee substantial loans to finance its business.
FINANCIAL INFORMATION: This is information summarized by
a company’s activities over the last year. They consist of the profit
and loss account, the cash flow statement etc.
ANALYSIS: In standard costing and budgetary control, analysis
of various in order to seek their causes. The total profit of various
is analysed into sub – variance indicating the major reasons for
budged figures.
DEBT: A sum owned by one person or organization to a person
showing that the debt to be required to be settled within one
accounting period.
RATIO: To put company’s performance in percentage. The use of
accounting ratio to evaluate a company’s operating performance
and financial stability.
DECISION MAKING: This is the end of deciding between
alternative courses of action. Running of a business, accounting
information and techniques are used to facilitate decision models
such as discounted cash flow.
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IMPACT: This means the duties responsibilities and functions.
As it has to do with work, it is that fundamental obligation
incumbent on the public relations for the attainment of
democratic order in the organization policy.
Accounting: Is the process of producing needed information
regarding primarily the financial activities of economic entities by
Bartho N. Kezee 1996.
The wide scope of accounting can be recognized when one
considers the diversity of economic entity which cut across sizes
and bounders.
Accounting is the language used to cover the result of the
entity’s endeavours, to the interested parties inform of financial
statement and the financial statement has been identified as
follows:
Statement of accounting policy.
Balance sheet.
Profit and loss account (income statements).
Notes on the accounts.
Statements of source and application of funds.
Value added statement.
Five years historical summary.
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INFORMATION ON DECISION MAKING PROCESS
Information consists of data that have been retrieved
processed or used for information purposes and as a basic for
forecasting and decision making process

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