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.
.
.
.
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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