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THE USE OF FINANCIAL ACCOUNTING INFORMATION SYSTEM FOR MANAGEMENT DECISION MAKING

 

                                                    

ABSTRACT

This study focused on the use of financial accounting information system for management devision making.

The objective of the study was to determine whether financial accounting information system was used by management for efficient and effective performance, and the extent the information guided and regulated management decision making in companies. This study proffered solution to the problems encountered by the management in the implementation of the financial accounting information system.

The study relied mostly on secondary data such as the financial rations responses to questionnaire the financial statement statistical test.

The major finding of the study was that employment of non qualified personnel in the account department lead to disregard of accounting information system.

It was also found out from the results of the percentage that accounting information system has a positive impact on management decisions in companies and there is a relationship between performance and effective use of financial accounting information my  managers.

It was recommended that companies should employ qualified accountants or alternatively educate their staff on how to use the financial accounting information system for management decision making.

In conclusion it is found that the more merits than demerits in using the financial accounting information system for management decision making in companies

 

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

 

Within the later part of 1990’s Nigerian economy has been characterized my instability.  This might be caused by not making good use of accounting information system for their management decision making.  Accounting information is the provision of relevant economic information system to permit informed judgment and  decision by user of the information”

Many companies are now closed  down rendering many people jobless. This led a lot of instability in the society the surviving companies are on the verge   of collapse.

Financial accounting covers those activates related to the preparation of certain report which are know as financial statements. These statements report the financial states of the firm at a particular the financial states of the firm at a particular period or time. The essence of this information system is for management and other users to make decision. The accuracy of the   decision made depends on the design of the management information system (M.I .S) which calls for the management concerned to prepare the financial accounting information system for the guidance of the users.