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Accounting as an Aid to Management Planning and Control in Business Organization

Accounting as an Aid to Management Planning and Control in Business Organization

Project / Seminar Material
Reference ID: PS-31-TM


This research work titled "Accounting as an Aid to Management Planning and Control in Business Organization" is dedicated to God for his enabling grace and to all computer enthusiasts who help to make life a pleasant experience.



I owe my indebtedness to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Accountancy / Accounting, Book Authors and Profound Scholars of existing/related research work for your moral support that facilitated the successful completion of my (Tertiary Institution level). I am grateful to God Almighty and my parent for their financial support in my career. I really appreciate you all for everything, Thank you very much.


Accounting as an Aid to Management Planning and Control in Business Organization


Preliminary Pages


  • 1.0 Introduction
  • 1.1 Statement of the problems
  • 1.3 Research questions
  • 1.4 hypothesis
  • 1.5 Purpose of the study
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Definition of terms


Review of related Literature

  • 2.1 Introduction
  • 2.2 The Nature of Accounting
  • 2.3 Fundamental Accounting principles and Assumptions
  • 2.4 The Relevance of good Accounting system
  • 2.5 Characteristics of good Accounting information System.
  • 2.6 Distinction between management Accounting and Financial Accounting.
  • 2.7 Importance of Accounting in planning and control
  • 2.8 Instrument of planning and Control

Chapter Three

  • 3.0 Summary of Finding, Conclusion and Recommendations
  • 3.1 Summary of findings
  • 3.2 Conclusion
  • 3.3 Recommendation



This research work originated from the need and importance of accounting in the management planning and control of Business organization. Mainly, it was prompted by the desire of the research to probe the problems faced by accountants in business organization and to proffer suggestions for a better tomorrow.

The problems the standard of accounting is falling due to inflation and deflation, accountants are now influenced by others in their work, accountants no more keep to their professional ethics of independence and they also involve in fraudulent acts and some do not have the knowledge of accounting principles.

The significance of the study lies in the fact that it will show or enlighten accountants and other people the usefulness and application of accounting.

The methods adopted in generation of data were primary and secondary source collection media. The primary data were obtained through questionnaire and personnel interview . Other media were through source and unpublished document and through the review of some related literatures.
The collected data were analysis in tabular from using percentage method.

The result of the study showed the extent of organization's management planning and control are being aided by accounting information and records.

It was recommended the management or accounting professionals in the business organization should design accounting system in such a way that the financial dealings can be clearly classified for easy analysis.


Accounting as an Aid to Management Planning and Control in Business Organization


1.0 Introduction

There is no gain saying the fact that accounting is the life blood of organization. This is because it finds application in various fields. Modern accounting is widely recognized as a basic component of business management.

According to Glautier and under down (1985); the history of accounting reflects the evolutionary pattern of social developments and this illustration how much accounting is as a product of its environment and at the same time a force or changing it. The four(4) phases that are identified in the history of accounting development management accounting and social responsibility accounting.

Millichamp (1989) sees accounting as the means by which managers are informed of the financial position and progress of their companies therefore warranting to the continuing processes of planning, controlling of operation and decision making. Accounting provides a method of systematic recording and evaluation on business activities. Accounting gives information which individual, organization, government, especially with the increased complexity of the economy world wide and the massive growth of individual organization.

Both the companies Act of 1968 the companies and Allied Matters (CAMAD) OF 1990. section (334) sub-section (2) have made specific laws and regulations governing the handling of accounting reports contained in both of the financial reports of the companies.

This attests to the importance of accounting.

This research is aimed at analyzing the relevance of accounting in management planning and control in business or organization with special attention.

1.2 Statement Of Problems

It is a well known fact that the need of accounting cannot be over emphasized. The ancient man operating within his mundane environment lived and carried out affairs only by intuition and happened stances. Being insatiable in his quest for knowledge and conquest for everything imaginable, man has become very much entangled in the complexities of life and the decision which needs to be taken in all aspects of human endeavor have become critical.

The need for the use of accounting information correctly, appropriately and effectively to aim management planning and control by arranging budgeted and needed data in understandable schedules and reports has been the desire of budget makers. Unfortunately, the standard of accounting is falling due to inflation, depression and deflation.

Accountants are now influenced by other people who may be the management. The accountants no longer keep to their professional ethics of independence, they are also involved in fraudulent acts some of the accountants do not have knowledge of accounting principle. Due to the problem of setting ineffective standard, costing and inability to prepare an achievable budget, the management planning and control in business organization has been adversely affected.

The prospect, expansion and growth of a business organization have been adversely unpaired due to their inability to appreciate the viability of proper accounting record in business organization, problem high rate of and mismanagement. In the business organization, as a result of improper and ineffective accounting system, and finally the problem of not, revealing the true financial position of a business organization due to poor accounting reports.
Infact, functions of accounting are falling but despite that, accounting is an indispensable tool for any business organization.

This research is to examine critically the aid of accounting in management planning and control in the business organization.

1.2 Research Questions

Okezie (2002) states accounting as a financial measures of performance, provides a means of knowing the position of activity within a business organization through its reporting function.

For a proper and critical evaluation of the topic under study, the following research question will be important:

  • What level of impact can accounting have in the management planning and control in a business organization?
  • How can accounting reports and aid in promoting the prospect, expansion and growth of a business organization?
  • To what extent can an effective standard costing assist management in controlling performance in business organization?
  • What level of assistance can budget aid management in effective and efficient management planning and control in a business organization?
  • Are there factors that restrict or constrain proper keeping of accounting records in a business organization?

1.3 Hypothesis

A hypothesis in accounting is a statement about one or more population. It is an assumption about the population involved. An auditor must be able to determine the propriety of a firms books or propriety of business organization. A production supervisor may formulate the hypothesis that employees who have been trained in a certain way require less time to complete an assigned task than do employees trained in some other way.

If the result from the sample is inconsistent with hypothesis being tested, we have to reject the hypothesis, on the other hand, sample evidence supporting the hypothesis leads to its acceptance. Consequently, a statistical hypothesis is formulated for the purpose of rejected it or accepting it.

Functions Of Hypothesis

  • It is a link between what exist but not known and what is known or discovered.
  • It transforms the researcher's ideas into testable forms.
  • It helps to specify what variables (type of data) are to be measured or collected by the researcher in order in order that he may have the expected results or “discoveries”.
  • It guides the researcher in his research design which helps in the generation of the requisite data.
  • It shows the direction of data analysis.
  • It helps the researcher to organize his research reports.
  • It helps the researcher to focus his attention and efforts in the right direction.

1.4 Purpose Of The Study

The main aim of all business is (or should be) profit optimization.

The management of most business keeps this as one of their basic primary purposes. Therefore, the purpose of this study is to evaluate and stress the need for useful and effective application of accounting to the business organization under study and other similar organizations.

To examine the pattern of accounting network existing in the business organization and to determine its effects on profitability.

Furthermore, it is to vouch out factors that restrict and constrain proper keeping of accounting records in business organization and possible remedies thereof and also to assess the efficiency of accounting system of the organization in providing good accounting information for various users.

Finally, this research will equally help to reveal and recommend to the business organizations, the importance of keeping proper accounting information as times will help them to achieve their goals.

1.5 Significance Of The Study

It is necessary that all organization install necessary accounting system that will enable them to function effectively and efficiently in this business world.

This study is very essential as it will help to and bring out the importance of accounting in terms of management planning and control in business organization.

However, a successful research on this topic will be beneficial to the researcher, business organizations, stakeholders, users of accounting information and the entire public as well in realizing the importance and significance, accounting contributes in planning and control prices in order to show and supply the needed information.

Again, this research will help to expose the management to the danger that faces them as a result of negligence and lack of proper accounting of the activities of the business organization. The benefits identified in this study will encourage and boost the accountants to comply with the standards laid down by company and Allied Matters Degree 1990(CAMD).

Finally, the result of this research world adds to the body of knowledge already in the topic of the study.

1.6 Scope and Limitations of the Study

This research would have been carried out throughout the business organizations in federation to a wide knowledge about this vital topic: but owing to the following reasons, the research is limited to organizations.

The reasons are obviously vivid. In carrying out this study, the researcher encountered certain problems which tried to limit the work.

These problems are:

  1. Lack of adequate book and research material in the library.
  2. There are transport difficulties due to poor state of our roads and high cost of transportation fare.
  3. There is financial constraints that made the researcher not to have purchased the necessary materials for preparing and administering this project.
  4. There is also a time constraint due to short tenure of the semester for carrying out the research exercise and coupled with other academic activities.

1.7 Operational Definition Of Terms

Accounting: This can be defined as a service oriented activity or practical technique concerned with the systematic recording, analyzing, measuring, summarizing and communicating economic information in order to make users, make wise decision and assessment.

Management: This is a group of people in business who have overall responsibility for achieving the company's goals.

Control: This is the way or method of getting into regulating, monitoring and checking activities, making sure that operations of the business is moving as planned.

Planning: This is an excellent tool for co-ordination and communication (the future will always be uncertain and no amount of planning can remove this uncertainty) this is because of the following:

  • It creates a state of mind which accepts the need for change.
  • It changes corporate attitudes form a negative (“what went wrong”) to a positive (“what must we do to put it right”?).

Organization: This is a collection of individuals either formally or informally who have decided to achieve a common goal

Budget: This is a financial plan which explicitly states the company's expenditure and income.

Company: A company is an association of person for the purpose of trade having the additional attributes of separate personality and limited liability to its members.

Profit-Oriented Organization: This is the arrangement of resources e.g. capital, labour, land and entrepreneur with the aim of making profit for further expansion.

Information Or Report: Okafor (1990) defined it as “statement or fact needed or received by a person or group of persons which is or will be useful to him or them”.

Inflation: This can be seen as the persistent increase in the price of goods and services and equally fall in value of money.

Transactions:This means business activities such as sales of goods, purchases of goods, payments and receipts of money etc.


2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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Proposal Writing Format under Accounting

Accounting as an Aid to Management Planning and Control in Business Organization is a proposal topic for final year research work, which comprises the major and elective project proposal writing sections for Accounting as an Aid to Management Planning and Control in Business Organization research work.

Major Sections
  • Motivation for Embarking on the Project

  • Brief Background of Study

  • Statement of Problems

  • Aim of the Study

  • Specific Objectives of the Study

  • Significance of the Study (Who benefits from the project and how?)

Elective Sections
  • Relevant Research Questions

  • Relevant Research Hypotheses

Defense Procedure for Accounting Researchers

Know your Project / Seminar Work (Accounting as an Aid to Management Planning and Control in Business Organization): Here are the key point to study if your work is cumbersome or not.

  • Abstract


  • Motivation / Statement of Problems
  • Aims & Objective of Study
  • Scope of Study
  • Significance of Study


  • State two or more citation from your review of related literature.


  • Know the methodologies, tools and techniques used.


  • Justification of your work and things to adhered to before using the system or research work.


  • Conclusion and Recommendation

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