ABSTRACT
The aim of the project is accounting information as a tool for management decision. The work covers various process of account information (management Account, financial account, standard for accounting information). This project will also consider possible ways of using accounting information as a tool for management decision. This project will afford the opportunity of identifying the major importance of accounting information in management for a proper decision making. Also the provided account information allows easy planning and control purpose. Lastly, the project topic assists the information conclusion drawn on he problem and the necessary ways of solving it properly to ensure a perfect management operation.
1.0 Introduction - - - - - - - 1
1.1 Background of the study - - - - - 3
1.2 Statement of the problems - - - - - 4
1.3 Objective of the study - - - - - - 6
1.4 Research of hypothesis - - - - - - 6
1.5 Significance of the study - - - - - 7
1.6 Scope of the study - - - - - - 8
1.7 Historical background of the case study- - - - 8
1.8 Definition of the terms - - - - - - 10
CHAPTER TWO: Literature Review
2.2 Management accounting - - - - - 15
2.3 Users of accounting information - - - - 17
2.4 Standard for accounting information - - - 20
2.5 The need for accounting information - - - 22
2.6 Presentation of information - - - - - 26
2.7 Over view of external financial statement- - - 27
2.8 Cost calculation - - - - - - - 33
2.9 Ratio and percentage analysis - - - - 35
2.10 Break Even analysis - - - - - - 37
2.11 Financial Decision - - - - - - 37
CHAPTER THREE
CHAPTER FOUR: Data Presentation, Analysis and interpretation
CHAPTER FIVE: Summary, Conclusions and Recommendations
Bibliography- - - - - - - - 71
Appendix A- - - - - - - - 72
Appendix B- - - - - - - - 73
CHAPTER ONE
1.0 INTRODUCTION
An organization needs qualitative information to function or make decision; the available of such information make the organization to function in the most effective and efficient manner. This information is provided by the accounting system to the management, which uses it primarily to accomplish three (3) broad purposes, viz:
In financial accounting, the responsibilities of the accountant ranges from recording and analysis, summarizing and reporting the result of the activities of the organization to creditors, stock holders and prospective investors, government, labour, environmental organization and others. In the case of reports to external users, they are classified for general purpose; they are financial statement, the income statement, the retained earnings, the balance sheet and the statement of financial position. People who protest or enhance their investment in the organization as by other who have a special interest in it use this statement. In management accounting, accountants provide information for use by office within the organization (the managers) rather than for use by other outside the organistion, such information are mainly decision making concerning the internal function organization. Management accounting also provides information to the decision makes for the following purpose:
Management and financial accounting may be understood by considering the basic goals of financial accounting is to direct forms of operations to maximize income the period measure net income used by the management in making decision to avoid what may be considered as an unwise decision to external user or vice versa. However, the relevance accounting information effective decision making in this research work, the degree of the relationship shall be clearly spelt out and identified.
BACKGROUND OF THE STUDY
The choice of the topic “Accounting information as a tool for management decision making” has been motivated by the fact that whatever accounting on information is presented to the has been collected, classified and analysis will determine the extent to which it is to be relied upon by the management in order to formulate a favourable decision in the organization.
The project therefore examines the relevance of accounting information to managerial decision making manufacturing companies with a view to highlighting the area of weakness and making necessary recommendations.
It is infact in the light of the above that attempt be made to apprais the essence of accounting information in making decision concerning he use of limited resources, including the identification of the overall organization objectives.
Management who thinks that they operate successfully without the use of the information provided by the accountings and up being economic failure to their respective industries, and some times course embarrassment to the organization. Take for instance, the accountant of an organization provide his manager with the information that there is no fund for any programme execution in the company. Despite this information, the manager went ahead an instructed the accountant to draw a cheque payable to a contractor who supplied some materials to the organization for settlement. Due to this action of the manager, the following condition is bound to happen.
There are many different types of decision for which managers need accounting information, listed below are four (4) examples of typical question that regularly confront managers, they include:-
For managers to make the best decision to resolve each of these questions the management accountant must provide quantitative information that is timely and relevant, it is with this information that managers can properly plan and control the organization operations. And these are some of the question and problems this research work intend to prepare solution to:
In conclusion, managers cannot take effective decision if the information provided to them but their accountants are not properly adhered to. It is this kind of problem that form the basis of this research work in which the relevant of accounting information in management decision making will be examined.
The objective of the study is concerned with established of the relevance of accounting information to managerial decision-making in manufacturing concerns. It is to further review and analyze accounting information in line with modern day techniques of presenting accounting information and its unique role as aid in decision making by the management. The purpose of this study therefore include the following.
We research work is complete without a hypothesis with hypothesis, a research work is consider to be meaningful and with direction simply, hypothesis show the relation between two or more variable which are in opposite to one another. In other words, it is in assumption information of a statement made by the research, which can only be accepted or rejected.
To this end, the researcher advanced the following as the basic of this research hypothesis.
That with good system of the accounting information the management of Zaki flourmill Azare can make a good decision to promote efficiency in its operations
The study is of significance in that; the findings will be of almost important to many establishments and to the business society at large. This is because it will determine whether accounting information in the manufacturing concern can serve as a vital tool in managerial decision-making. Also, the study will serve will as a supply of knowledge of manager and accountants on how they can improve decision making procedure of their companies for an effective performance and also to those who wanted to carry out further research on the same topic in the future.
This work will cover some aspects of accounting techniques in operation in the manufacturing organization with reference to Zaki flour mills Azare and the type of report prepared for decision-making. The researcher intends to examine the relationship that exist between accounting information and management decision-making. Some related literature in the field of study would also be alid on the usefulness fo each of the information prepared by individual segment of the accounting branches.
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