Some organizations have failed woefully due to neglect in the use of accounting information in its decision making process. Managers, therefore should rely more on accounting information in its decision making process since decision making skill is “the key “ to successful planning in an organization.
The statement of accounting standard No. 2 issued by the Nigerian accounting standard Board defines Accounting Information as “the data that are found in financial statement which provides a continuing history qualified in monetary terms of economic resources and obligations of a business enterprises and of economic activities that change these resources and obligations”.
Accounting Information therefore, provides the yardstick for measuring the performance of a business organization and is also an instrument against which management compare actual result with established standards. Thus, this information communicated by accounting records serves as a basis for corrective actions when actual outcomes deviate from pre-determined goals.
Accounting Information is not only needed by managers, other users of accounting information include: shareholders (owners), editors, potential investors, the government and the public who have supplied money to the business or who have other interest in the business that will be served by information about financial position and operating results.
The type of accounting information that a specific type of user will require depends upon the kinds of decision that a person wants to make. For example, managers need detailed information about daily operating cost for the purpose of controlling the business and setting reasonable selling price. Other users on the other hand, usually need summarized information on operating result for the past years to use in making investment decisions, levying income tax, or making regulatory decisions.
Accounting information is conveyed to users in a variety of reports and schedules. Reports to internal user (management) are specifically designed to meet their particular needs, which are usually known at the time the reports are prepared. Reports to external user are more standardized and are often referred to as “financial statement”. According to the statement of accounting standard No. 2, the information to be provided in financial statement are those that are quantitative and qualitative in nature to aid their users in making informed economic decisions. Financial statements are therefore to be simple, clear and easy to understand by all users.
TABLE OF CONTENTS
TABLE OF CONTENTS
1.3STATEMENT OF PROBLEMS
1.4PURPOSE OF STUDY
1.5SCOPE OF STUDY
1.6SIGNIFICANCE OF STUDY
1.7LIMITTION OF THE STUDY
2.2DEFINITION OF ACCOUNTING
2.3SCOPE OF ACCOUNTING
2.4OBJECTIVES OF ACCOUNTING
2.5SOURCES OF ACCOUNTING INFORMATION
2.6ACCOUNTING FOR DECISION MAKING
2.8FEATURES OF ACCOUNTING INFORMATION
2.9FINANCIAL STATEMENT AND THEIR INFORMATION, CONTENTS FOR MANAGEMENT DECISION MAKING.
2.10ACCOUNTING CONCEPTS AND CONVENTIONS
THE ROLE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY In a global market in the in the contemporary economic environment all businesses need relevant and appropriate information quantitative as well as qualitative information which is adequate to survive and grow in a... Continue Reading
ABSTRACT Information as a life wire of any organization is very vital decision making manufacturing companies take decision concerning Production, pricing and marketing. Consequently, it is vital that relevant,... Continue Reading
ABSTRACT This research was conducted after a thorough consideration of the role of accounting information in investment decision making. There is growing pressure around the world to promote greater transparency and disclosure, consistent with the importance of the growth of world trade and investment. Disclosure regulation varies internationally... Continue Reading
(A CASE STUDY OF NIGERIAN NATIONAL PETROLEUM CORPORATION - NNPC BENIN CITY) ABSTRACT This project research work attempts to explain the Cost Accounting Information as an aid to decision making in an organization using Nigerian National Petroleum Corporation (NNPC), Benin-Asaba Road, Benin... Continue Reading
ABSTRACT This research work highlights the result of a research carried out to examine the relevance of accounting information to management decision making in First Bank of Nigeria Limited, Abdullahi Fodio Road Branch. A substantial aspect of the study involved collecting data through the instrumentation of questionnaires and interview. The... Continue Reading
CHAPTER ONE DEFINTION OF TERMS Financial Accounting : Financial accounting is concerned with the recording of transactions for a business enterprise or other economic units and the periodic preparation of various reports from such records. Financial accounting then can be said to be a systematic gathering, identifying, summarizing and reporting of... Continue Reading
(A CASE STUDY OF EMENITE COMPANY) PROPOSAL Accounting is the process by which the profitability and solvency of company can be measured. Accounting provides some basis information needed in making business decision. it is clear that a business cannot hope of accomplish these objectives... Continue Reading
(A CASE STUDY OF EMENITE COMPANY ENUGU) PROPOSAL Topic: Accounting Information as a Management Tool in Decision Making Introduction Accounting is the process by which the profitability and solvency of company can be measured. Accounting provides some basis information needed in making... Continue Reading
ABSTRACT Decision-making can be viewed as the very fabric of which organized activities are made. This partly depends on the amount of information supplied to management. This study is aimed at finding out information supplied by the accountants through financial accounting. The study revealed the information derived from financial statement, the... Continue Reading
ABSTRACT This study focused on the use of financial accounting information system for management decision 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... Continue Reading