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The Use of Management Accounting Information in Decision Making of Manufacturing IndustryProject / Seminar Material Reference ID: PS-35-TM |
This research work titled "The Use of Management Accounting Information in Decision Making of Manufacturing Industry (A Case Study of Dauphin Nigeria Limited, Lagos)" is dedicated to God for his enabling grace and to all computer enthusiasts who help to make life a pleasant experience.
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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.
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PRELIMINARY PAGES
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Appendix
Questionnaire
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Efforts have been made by organizations to rectify the problems found in this firms pertaining to decision-making. Some decisions have altered the requirements of the firms objectives and goals. This work is sought to appraise the use of management accounting to information in decision making of mainly the manufacturing industries.
A hypothesis showing that management null hypothesis showing that management accounting information is not effective and efficient in business decision making while the alternative hypothesis said management accounting information is relevant for effective and efficient decision making. Some research findings were made showing how needful management accounting information is.
In order to analyze and present the data instrument like personal interview and questionnaire were highlighted. The research dispatched forty questionnaires of which twenty five where returned and use. Hypothesis was tested using shi-square method.
It was proved that management receive insufficient accounting information of which improvement is required in view of the above that can only be useful and effective if it is timely and relevant. Management should endeavor to employ more qualified accountants.
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Management has been described as a process by which systems are administered Igbochi (1990) stated the transformation of resource inputs to produce output give more logical reason for the existence of the management. On the other hand, management can be looked upon as a body of knowledge representing what managers do.
Management generally is a process composed of functions that are inter related and inter dependent. Administratively, the managerial functions involves planning, and controlling, staffing and motivating under planning.
The management of every business organization has two major objectives to pursue in order to ensure the continued existence of the business. The first is to maximize profit, and the other is to maximize wealth that is to stay solvent, or to have sufficient cash to settle debts as they fall due.
The management accounting sees that all the necessary information required by the manager for decision making is supplied. Decision making has been described as a purposeful choosing from a number of alternative courses of action. In deciding which alternative to choose, the manager will desire all the information which is relevant to the decision and then have some criterion on the basis of which he can choose the best alternative. Although, the information needed by the manager is being supplied, its has been less enthusiastic, and hence this research is aimed at findings information under utilization.
From the beginning in 1992 Dauphin Nigeria limited has establish into a successful manufacturing concerned, special thanks to Sir Chima Emeyeonu, who had the incited to foresee the potential of a vast market for locally produced leader products such as ladies hand bags, all kind of suitcases, leader sandals, both in Nigeria and sub region.
Over the years, the company has diversified and expanded its operation to include the production of gum adhesive polythene and synthetic products. It is also involves in a hotel business.
The company has some factories in Lagos. However the manufacturing of its products are carried out. The company has its administrative head office situated at no 83 Hire, Road Surulere, Lagos State.
The company also has over two hundred employees in its manufacturing sites in addition to about twenty staffs at its head office. Dauphin Nigeria Limited is a very typical example of a modern manufacturing concern, hence is selected as a case study of this research.
One of the most functions of management is to make decision. However, the acquisition and proper utilization of accounting information has always been faced with problems which are out lined as follows:
This research is aimed at examining how effective and efficient management apply accounting information in making organization decision.
The main purpose of this is to ascertain the role played by the use of accurate an qualitative accounting information in decision making process.
Procedures and its implementation could be improved for the native of the typos of accounting information supplied to companies, for decision making.
Looking into the extent to which managers neglect using accounting information is their decision making activities.
Accounting to Nworji (1992) management accounting as a special tool helps the executives in their enormous task of making decision on how best to run an organization to achieve its goals of optimal profitability information is to business what blood is to the human body. Any insufficiency in its or improper flow of it causes a great problem to the system as a whole.
This research study will be beneficial to the decision maker who knows when and where to apply management accounting information in decision of which better decision can be taken.
Also the study can benefit all those who have financial interest in a business. A better business service to increase profit and business expansion. This will likely lead to and increase on profit.
The following hypothesis are formulated in other to determine the validity and reliability of the information gathered.
1) Null Hypothesis (Ho)
Management accounting is not relevant for effective and efficient organization decision making.
Alternative Hypothesis (Hi)
Management accounting is relevant for effective and efficient organization decision making.
2) Null Hypothesis (Ho)
Management do not apply accounting information supplied by accountant decision making. Alternative Hypothesis (Hi)
Alternative Hypothesis (Hi)
Management apply accounting information supplied by accountant decision making.
3) Null Hypothesis (Ho)
Accountant has no way in enhance in the management of the company.
Alternative Hypothesis (Hi)
Accountant has many ways enhanced in the management of the company.
The scope of this study is centered on Dauphin Nigeria Limited, Lagos. Alternative was concentrated to only the relevant management accounting information that were useful for efficient and effective decision making.
This work is by means exclusive but useful attempts to penetrate the core of the issue have many difficulties in the researcher accounting data for this research. These problems invariable formed the basis for limitation of the study.
Firstly, time constraint affected a comprehension review of related literature on the subject matter of the study. Gathering of materials, text books, journals etc for the review of literature was time consuming. The researcher being a student has other course to cover and thus had to apportion her time to meet. Secondly, the proximity of related literature materials also posed a problem. The researcher was impeded by necessary text books, magazines and journals for literature review.
Furthermore, the respondents also offered their to the study, human beings have never been easy to deal with especially when human behaviours are unpredictable some data and questionnaires were bounty refused by the respondents.
Financially, the researcher was wholly sponsored by the researcher. which was based on the little money saved. All those limitations, limited the validity of the findings and conclusions, the research would have been more retained without these constraints.
The following operations terms are defined in this chapter to help achieve what is needed;
Management accounting: This is concerned with the provision and interpretation of information required by management all level.
Decision making: This is described as purposeful choosing from a number of alternative course of action.
Business: This involves the carrying on of a business trade or commerce involving the use of find or capital.
Budgeting: This is a process by estimating anticipated inflows and outflows for a given period and a method of balancing both.
Manufacturing industries: This are firms that produce goods or things in large qualities either mechanically or manually.
Controlling: This is a process of ensuring that the causes of action are maintained and that desired ends are achieved.
Planning: This is a process of collecting information and making decision to achieve some objectives it determining planning its highest level, providing the overall framework for the attainment of organization's objective. Further operational planning is carried out, primarily concerned with the acquisition of resources necessary to carry out this strategic plan.
Efficiency: This refers to how firms effectively utilizes assets involving inventories, sales and profit.
Solvency: This refers to the ability to discharge ones liabilities as they fall due.
Information: This refers to data that has been processed to produce meaningful relation to a field.
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 …