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Accounting Information as an Aid to Management Decision Making

Accounting Information as an Aid to Management Decision Making

Project / Seminar Material
Reference ID: PS-142-TM


This research work titled "Accounting Information as an Aid to Management Decision Making" 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 Information as an Aid to Management Decision Making


Preliminary Pages CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Objectives of study
1.4 Research questions
1.5 Significance of study
1.6 Scope of study
1.7 Limitation of study
1.8 Definition of terms
2.0 Review of related literature
2.1 Introduction
2.2 Nature of accounting information
2.3 Source of accounting information
2.4 Importance of accounting information
2.5 Accounting information and management
2.6 Decision making process
2.7 User of accounting information in firms
2.8 Problems of the use of accounting information in companies
Chapter Three
3.0 Research methodology and design
3.1 Introduction
3.2 Research design
3.3 Sources/methods of data collection
3.3.1 Primary data
3.3.2 Secondary data
3.4 population and sample size
3.5 Sample technique
3.6 Validity and reliability of measuring instrument
3.7 Method of data analysis
Chapter Four
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
Chapter Five
5.0 Summary of findings, conclusion and Recommendations
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations



The accounting information is the bases for financial planning analysis and decision making. They are needed to produce, compare and evaluate the forms of earning ability. It is also required to aid on economic decision making. the accounting information of an enterprises, firms or companies are contained in the financial statement of accounting reports and this comprises of firms balance sheet, profit and loss accounts or income statement of sources and application of fund, statement of value added, notes to the accounts and statement of accounting policy etc.
The information contained in each of the statement and the management in decision making in diverse ways for example; the statement of value added measures, the wealth created by a business entity over a period of time and how it has been shared amongst the interest group.
The profit and loss account measure the share profit which has accrued to the shareholders during a period while the balance sheet indicates the financial condition on the statement of affairs of a business at a business at a particular moment of time or accounting period.


Accounting Information as an Aid to Management Decision Making


1.0 Introduction
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 [1999] 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:
  1. 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.
  2. 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.
  3. Lack of job experience may also affect the quality of information passed into management to ensure it work affectively.
  4. 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.
  5. The lack of timely relevant information of the accounting and other personnel in the department.
  6. 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:
  1. To ascertain the level of the staff on the actual nature of their job.
  2. 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.
  3. To also ascertain the level of reliance that can be placed on accounting information.
  4. To find out if the accounting personnel and other employees that is adequately qualified to handle positions of responsibilities and function effectively.
  5. 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:
  1. What are that management accounting information and the techniques to analyze them?
  2. How do these techniques relate to the organization management decision?
  3. What roles does management accounting information play in organizational decision making information planning and control?
  4. 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:
  1. It will be of immense benefit to all users of accounting information.
  2. 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.
  3. It will enable employees and customers in their ability to form or to produce goods or render services on a continues basics.
  4. It will enable accountants in realizing the importance of accounting in decision making.
  5. 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:
Time Constraint:
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.
Costing Decision:
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.
Finance Ratio:
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.
Strategic Planing:
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.


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 Information as an Aid to Management Decision Making is a proposal topic for final year research work, which comprises the major and elective project proposal writing sections for Accounting Information as an Aid to Management Decision Making 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 Information as an Aid to Management Decision Making): 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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