Accounting Information and Management Decision Making: A Study of Selected Manufacturing Companies in Nigeria



ABSTRACT
This study investigated the relationship between accounting information and management decision making of Nigeria Bottling Company in Port Harcourt. The purpose of the research was to determine the effect of timely, speedy and reliable accounting information on the management decision making process of the company. In order to achieve the purpose of the study, six (6) hypotheses were formulated and data collected from primary sources through the use of structured questionnaires which were distributed to sixty seven (67) accounting staff of the company. The collected data was analyzed using Pearson Correlation on SPSS version 21. The findings of the study showed that timely, speedy and reliable accounting information is positively and significantly related to resource allocation. The findings also showed that timely, speedy and reliable accounting information is positively and significantly related to the product line of the company. Based on the findings, it was concluded that: Timely accounting information is very important for optimal resource allocation and product line. It was also concluded that the use of reliable accounting information helps to enhance the product line and resource allocation of Nigeria Bottling Company. Finally, it was also concluded that the provision of speedy accounting information to managers improved operating performance of the company is substantially boosted. Based on the above conclusions, it is recommended among other things that: Accounting staff must be trained in the processes involved in providing speedy, reliable and timely accounting information in order to boost the company’s performance. We also recommend that manufacturing organizations should employ fully qualified accounting personnel who understand the importance of providing reliable accounting information on time.

80 Pages

Project Reference Code: C047

CHAPTER ONE
BACKGROUND OF THE STUDY
1.0 INTRODUCTION
The role of accounting information and management decision in organizations has grown enormously in the past. This is as a result of wildly extended business operations for the effective decision making.
The quality accounting of information aid the management decision. The success, growth and survival of any firm depend on the quality of decisions made by its management, consequently, for a business organization to survive. It require a good accounting information system that flow to the management. The quality of decisions in turn depends on the quality and timeliness of accounting information which a very scarce resource is sought for by every organization. 
Accounting refers to the process of identifying measuring and communicating information to permit informed judgment and decision by user of accounting information.
The accounting information is communicated by using financial statement, annual reports, management accounting reports and a common measurement performance of profit.
Accounting helps in information processing that serves several purposes such as;
i.           Providing a record of assets owned, amount owed to and money invested.
ii.          Providing an annual reports showing the financial position of an organization and the profitability of its operation.
iii.        Helping in management of organization.
iv.        Providing a ways of measuring and evaluating organizations effectiveness.
v.         Helping the shareholders to monitor an organization activities and performance.
vi.        It enables potential investors or funders to evaluate an organization and make decision.
1.2 STATEMENT OF PROBLEM
        The essence of accounting information is to assess control and survival of Nigeria bottling company, which enable the internal and external users of accounting information and management decision making of an organizational performance.
        Sometimes, wrong information are made and they influence the achievement on accurate and efficient reports regarding the preparation of financial statement. Therefore this study will be incomplete without identifying some prevailing problems that promoted the researcher. Among the glaring problems are;
a.         From observation, it has been noticed that in most Nigeria bottling company, accurate information on production and assorted issues are not well kept.  
b.         Lack of coordination and deep sense of involvement of all level of management decision-making may create serious lapses towards optimal utilization of accounting information.
c.         Over investment or under investment in business opportunities which may either be as a result of the accountant’s incompetence in providing the relevant information.
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTIONS  
1.5 STATEMENT OF HYPOTHESES
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE AND LIMITATION OF THE STUDY  
1.8 ASSUMPTION OF THE STUDY

References
Adeniyi A. Adeniyi (2004). An Insight into management Accounting, 3rd Edition, EL-TODAY Ventures Limited.
Edwinah, A. and Daminabo-Weje M. (2004. Fundamentals of Management, Davidstones Publishers Limited.
Matulich, S. and heitger A. (1980). Managerial Accounting, New York McGraw-Hill.
Moses S. Neebee (2003). Basic Cost accounting (managerial Emphasis); Niceprints International.
Ofurum, C. O. Micah L. C. and Olagunju A. (2008). Management Accounting 1: Davidstones Publishers Limited.

Ogbonna G. N. (2010). The Role of Accounting Information System in Management of small and medium enterprises. Chidi’s computer services. Port Harcourt.
Olagunju Adebayo (2007). Dictionary of Accounting terms; EL-TODAY Venture Limited.
Paago, B. B. V. (2005). Essentials of Management (Principles and Practice), trumpet Press and Publishers.


CHAPTER TWO
LITERATURE REVIEW
THEORIES OF ACCOUNTING INFORMATION
Several alternative theories have been put forward for accounting information system which are: contingency theory in accounting information system, agency theory in accounting information system and transaction cost economic (TCE) theory in accounting information system.
1.   CONTINGENCY THEORY IN ACCOUNTING INFORMATION SYSTEM
Contingency theory are classes of behavioral theory that contend that there is no one best way of organizing/leading and that an organization/leadership style that is effective in some situations may not be successful in others. This paper uses contingency theory literature to identify, evaluate and analyze the factors that affect the design of financial and accounting information system. It explores the relationship between management accounting within an organization and features of the organization. Contingency theory suggests that an accounting information system should be designed in a flexible manner so as to consider the environment and organizational structure confronting an organization.
Accounting information systems also need to be adopt to be specific decisions being considered “a contingency framework for the design of accounting information system”. Accounting organization and society, vol. 1, No. 1 pp. 59-69 (1976).
2.  AGENCY THEORY IN ACCOUNTING INFORMATION SYSTEM
Agency theory is a supposition that explains the relationship between principals and agents in business.
Agency theory is generally concerned with principal-agent relationship (Farma and Jensen, 1983, Jensen and Mecking, 1976) in such a relationship, one party (the principal) hires another party (the agent) to perform some task on his or her behalf that require some delegation of decision-making authority to agent. There is no doubt that agency theory and its views of the firm as a complex nexus of contracts, constitutes one of the major pillars of theoretical accounting.

3.  THE TRANSACTION COST OF ECONOMIC (TCE) THEORY IN ACCOUNTING INFORMATION SYSTEM
Transaction cost economic focuses on the organization of transaction that occur whenever a good or service is transferred from a provider to a user across the technological separable interface. When transaction occurs within an organization, the transaction cost can include managing and monitoring personnel and procuring input and capital equipment. The transaction cost of buying the same goods or service from an external provider can include the cost of source selection, contract management, performance measurement and dispute resolution. Thus, the organization of transactions, or “governance structure”, “affects transaction cost”. This discussion of transaction cost theory is based on Williamson (1989).
2.2.1 CONCEPTUAL FRAMEWORK 
2.2 ATTRIBUTES OF ACCOUNTING INFORMATION
2.3 SAMPLE STRUCTURE
2.4 NIGERIA BOTTLING COMPANY OPERATION IN NIGERIA
2.5 HISTORICAL BACKGROUND OF ACCOUNTING
2.6 WHAT IS INFORMATION
2.7 NATURE OF ACCOUNTING INFORMATION    
2.8 SOURCE OF ACCOUNTING INFORMATION  
2.9 MANAGEMENT’S USES OF ACCOUNTING 
2.10 MANAGEMENT ACCOUNTING INFORMATION
2.10.1 CHARACTERISTICS OF USEFUL INFORMATION        
2.10.2 ANALYSIS OF FINANCIAL STATEMENT
2.11 TYPES OF RATIOS AND FORMULAR FOR COMPUTATION
2.12 EFFECT OF FINANCIAL CONTROL ON THE ECONOMY
REFERENCES
Adeniyi A. Adeniyi (2004). An Insight into management Accounting, 3rd Edition, EL-TODAY Ventures Limited.
Moses S. Neebee (2003). Basic Cost accounting (managerial Emphasis); Niceprints International.
Ofurum, C. O. and Ogbonna G. N. (2008). Accounting Information Systems a Functional Approach, Bon Publications, Imo State.
Ofurum C. O, Egbe Solomon and Micah L. C. (2014). Corporate financial Accounting and Reporting. A Practical Implementation Guide (IFRS Edition) Davidstones Publishers Limited.
Ogbonna G. N. (2010). The Role of Accounting Information System in Management of small and medium enterprises. Chidi’s computer services. Port Harcourt.
West, G. T. (2005). Computers and Data processing: A Global Concept: Minson Publishers, Port Harcourt.
  
CHAPTER THREE
RESEARCH METHODOLOGY
3.1   INTRODUCTION
Research is an elusive term, to pin down to a definition, it is operationally defined in “research methodology and statistics” Thom-Otuya V.C and Kanie Horsfall Enyindah 2001:2) as any organized enquiry that aims at providing information for solving identified problems. Hence, the chief concern of this chapter involves the collection and analysis of relevant chapter involves the collection and analysis of relevant and sufficient data on the accounting information as a basic tool for decision making a manufacturing company wishes to highlight the methods and procedures that were used in the study via; 
·        Research design
·        Population of the study
·        Sample and sampling techniques
·        Nature/scope of data collection
·        Methods of data analysis
·        Validity reliability of instrument
3.1   RESEARCH DESIGN
Research design is a frame work that is used as guide in collecting data for a study. It deal with the fundamental questions of how the required data for the study will be collected, how the subject matter will be brought within the scope of the research. Setting to yield the required data. Unamma (2003) sees research design as the program, plan and method of proof which guides a researches in the process of collecting, analyzing, testing, hypothesis or research questions and interpreting useful data, information and observation, it is those scientific steps which a research must follow in order to come out with a proof and draw inference or conclusion on the cause and effect relationship etc. exiting among the chosen problems, factors, variables in the research topic.
There are two types of research design the experimental and quasi- experimental research design consists of descriptive research (Case study and survey) and historical research.
In this study, the researcher adopted quasi-experimental research design. Here the selecting part of the population as sample for the study since population itself may be too large or broad for convenience study.
According to Nwokoye (1986), the study method may be personal interviews, telephone interview mail interview or questionnaires.
However, in this study, we employ the use of questionnaires and personal interview as well as the past records popularly called “secondary data” in obtaining necessary information for the study. 
3.2   POPULATION OF THE STUDY
3.3   NATURE/ SCOPE OF DATA
3.4 METHOD OF DATA COLLECTION
3.5 DATA ANALYSIS TECHNIQUES
3.6   SAMPLE/SAMPLE TECHNIQUE
3.7   VALIDITY RELIABILITY OF INSTRUMENT
REFERENCES

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0   INTRODUCTION
This chapter presents a detailed analysis of the analysis of the primary data collected in response to the questionnaires distributed to individuals in the local branches of Nigeria bottling company in Port Harcourt. This chapter will answer the research questions and test our hypotheses. 
4.1   DATA PRESENTATION
A total of 67 copies of the questionnaire were distributed to the selected respondents. Out of 67 Questionnaires that were distributed, 60 were duly completed and returned while 55 of the returned Questionnaires were found to be correctly completed, hence 55 of the Questionnaire were   actually used in our data analysis. This represents 82.1% of the total questionnaire distributed.
4.2   DATA ANALYSES
4.3   TEST OF HYPOTHESES
4.4   DISCUSSION OF RESULTS


CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0   INTRODUCTION
In the previous chaptr, the data collected for the purpose of the study was analyzed and the result interpreted. In this chapter, we shall utilize the result of data analyses in chapter four to draw conclusions and make the necessary recommendations. But first, let us summarize the results
5.1   SUMMARY OF FINDINGS
In hypothesis one, the study showed a positive and significant relationship between timely accounting information and resource allocation of Nigeria Bottling Company Limited. Indicating that the provision of timely accounting will lead to better resource allocation in the company.
In hypothesis two, the study showed a positive and significant relationship between reliable accounting information resource allocation with the implication that higher levels of reliability in accounting information will improve the process of resource allocation in the company.
Hypothesis three showed a positive and significant relation between speedy accounting and resource allocation. This indicates that the speed with which accounting information is made available to management significantly affects the ability of management to make the right decisions.
Hypothesis four which tested the relationship between timely accounting information and product line of Nigeria Bottling company showed a positive relationship between both variables with the implication that the provision of timely accounting information significantly affects the product line decisions of the company.
In hypothesis five, we tested the relationship between reliable accounting information and the product line of the company. The findings showed that a positive and significant relationship existed between the variables of the study. Thus, the provision of reliable accounting information significantly reflects on the company’s product line decisions.
Finally in hypothesis sis, the findings showed a positive and significant relationship between speedy accounting information and the product line of Nigeria Bottling Company, Port Harcourt. This finding indicate that the faster accounting information gets to decision making, the faster will be the decision making process which will lead to a much better product line for the company.
5.2   CONCLUSION
5.3   RECOMMENDATIONS
       

BIBLIOGRAPHY
Adeniyi A. Adeniyi (2004). An Insight into management Accounting, 3rd Edition, EL-TODAY Ventures Limited.
Ajoku L. I. (2006): Foundations of Educational Research and Statistics: PEAEL Publishers: Port Harcourt.
Anderson .D. and Rauna .D.  (1978)  “Information Analysis in Management Accounting,” New wiley/Hamilton.
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Thom-Otuya, V. C. and Kanie Horsfall Enyindah (2005). Research   Methodology and Statistics. A functional Approach: Osia Int’l Publishers ltd. Port Harcourt.
West, G. T. (2005). Computers and Data processing: A Global Concept: Minson Publishers, Port Harcourt.


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Project Reference Code: C047

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