1.1 Background Of The Study
Management is frequently faced with the problems of making alternative decisions faced with fact that resources are relatively scarce and limited compared to human wants. management does not only seek to ascertain cost at various stages in the process of providing a product or services, but also to make proper and accurate decisions at all levels on the modern organization. This process is facilitated by utilization of adequate and accurate accounting information policies.
Chris M. Madu  without doubt decision making is one of the highest forms of human and hence management activity. The development of a business and the activity of its potentials very much depend on the existence of entrepreneurs with the present skills, capital and professional advice. These include accurate accounting information provided by accountants and their planning and other decision process. Despite the provision and utilization of accounting information, managers found it difficult to plan accurately. Consequently, results have on most cases been away from decision barget. This can be attributed to inadequate and inappropriate use of information.
This study will examine the use of accounting information in the form. it will delve into the constraint affecting the use of accounting information by mangers in their decision making process.
Also this study will give a related literature that will discuss the nature and sources of accounting information, its importance and the users of this information.
1.2 Statement Of Problem
The major purpose of the use of accounting information is the minimization of risk and uncertainties that is likely to bring about failure on business.
Some likely problem that may be encountered or the use of accounting information includes:
- The ability of mangers to interpret accurate accounting data made available to them may less to a deviation from the form's normal course of goal attainment.
- The level off qualification of the accounting staff if not adequate will pose a serious problem on the quality of accounting information supplies as it may likely be inadequate.
- Lack of job experience may also affect the quality of information passed into management to ensure it work affectively.
- The poor and improper utilization accounting information, there may be difficult in acquiring relevant accounting information needed by the management of a form for decision making needs on the other hand, if this information is gotten, it may not be properly utilized for the purpose for which it was acquired.
- The lack of timely relevant information of the accounting and other personnel in the department.
- The new and improved technology on large scale, forms without the complimentary expertise in its operations are likely to reduce the usefulness of the accounting information supplied.
1.3 Objectives Of The Study
The project is introduced to analyze the causes of failure in the attainment or organizational objectives especially in relation to management decision making and proper solutions that may include:
- To ascertain the level of the staff on the actual nature of their job.
- To ascertain relevance of the information supplied to manage it in a way that they can easily understand and also be able to absorb for their decision making needs.
- To also ascertain the level of reliance that can be placed on accounting information.
- To find out if the accounting personnel and other employees that is adequately qualified to handle positions of responsibilities and function effectively.
- To ascertain the method employed in acquiring relevant information supplied and to what extent management is utilizing this information to satisfy its information need.
1.4 Research Questions
By seeking ensures to the following research question the purpose of the study will be acquired the following are as follows:
- What are that management accounting information and the techniques to analyze them?
- How do these techniques relate to the organization management decision?
- What roles does management accounting information play in organizational decision making information planning and control?
- Are these management decision organizational based on data other than accounting information?
1.5 Significance Of The Study
The significant of this project include the following:
- It will be of immense benefit to all users of accounting information.
- It will enable decision making manager to identify the relevant of accounting in managing and in measuring performance, planning and controlling operations therefore making better decision.
- It will enable employees and customers in their ability to form or to produce goods or render services on a continues basics.
- It will enable accountants in realizing the importance of accounting in decision making.
- Finally, this project, Accounting Information as an Aid to Management Decision Making will enable shareholders to determine the liquidity and profitability.
1.6 Scope Of The Study
This study focus on management in ascertaining the accounting and adequate of information used by management to their decision making area that involved only the accountants' and the management. These areas of focus are planning, controlling and coordinating and costing decision.
1.7 Limitation Of Study
Irrespective of the fact, that this study was successful, loopholes where also encountered in the production of the study. The loopholes are listed under as follows:
This study which requires a comprehensive exercise, was done in specification of few months, time limited, there was no enough time for the researcher to locate his wanted accountants for the interview, time was not enough to travel to another area of interest.
This was as constraint of money for typing photocopying and printing. This was also constraint in the fetch of relevant materials which supposed to aid the success of this study like textbooks, journals and other materials. But after all said and down, these limitations did not stop the completion of this study.
1.8 Definition Of Terms
The use of information by accountants in making decisions by which management formulates objectives and choose a pattern of action in order to objectives for the future business of the firm.
Controlling And Co-Coordinating:
A process of ensuring that the causes of actions are maintained and that the desired aims are achieved. This is done, through the use of budget and actual data.
This is the application of accounting and costing principles, method and techniques in the ascertainment of cost analysis of experiences or with standard.
Alternative lines of actions, wishes are often irrevocable.
A set of processes data available for application and in alternative lines of action.
The relationship of one amount used in analyzing financial position of an enterprise.
Directing And Supervising:
Is the manager's effort to secure actual performance from subordinates towards common goals and objectives.
Is the structuring of activities, materials and personnel for accomplishing the assigned tasks to ensure that the plan of operations is properly prepared and executed.
This is any process that guides an activity toward some predetermined goal.
This is where the top managers the general objective of the business or organization and the best way of reaching them in the light 1 of the resources currently available and those likely to be available on various data in the future.