Effect of Accounting Information on Decision Making Process

Effect of Accounting Information on Decision Making Process


Effect of Accounting Information on Decision Making Process


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Abstract on Effect of Accounting Information on Decision Making Process

The paper examined the effect of accounting information on decision making process, with a particular reference to the Nigerian breweries plc. The research was geared towards understanding the operations in Nigeria breweries plc with an emphasis on decision making process. The problems, prospects and implications of the programme were also examined. The objective of the study is therefore to expose to various department the proper way to embark on effective accounting information. Firstly questionnaires were distribution of which thirty were completed and return using stratified random sampling. Also related literature dealing with the effect of Nigeria breweries plc were interviewed and secondary data were obtained from system. The data collected were later analysis and interpreted. From the study, it was discovered that accounting information is an important aspect of management policy, for higher productivity, efficiency and increased performance, though it in value a huge financial obligation. Finally, I will say that various organizations should therefore try and embark on accounting information on decision making for successful running of their organization.                          

Chapter One of Effect of Accounting Information on Decision Making Process


This research work on the effect of accounting information on decision making process, a study of Nigeria breweries Plc, Nite Mile Corner Enugu on the effect that accounting information exert in improver the decision making process of a company with reference to Nigeria breweries Plc Nite Mile Corner Enugu.

Decision making is simply making a choice out of several alternative or it is the process of studying and evaluating two or more available alternatives leading to a final choice.

Background of Study

With the view of being independence, Nigerians has the view of a better tomorrow. We were able to feed ourselves and provide ourselves with social, economic and political endeavor. Subsequently our hopes seemed unattained which made the country becomes as strong as the Iroko tree. The idea had, was that it would be worst for Nigerians to our economic adverse situation raising its ugly head. This economic crisis has made financial institution industries (large or small scale) go into distress at alarming rate and those who service this financial problem has form the onset prepared his/her firm against this ugly situation by mapping out all kinds of straggles example increase in price of this goods, adopts favorable production tool, engage in marketing etc.

Any business, firm, establishment that wants to survive this present day bad economy in Nigeria which must make a right decision, map out a good and competitive strategies to carry out his/her business successful. The price of any convincible item from garri and bread to electronic and educational items not to talk of the life wire of every man standing that is petrol which has presently made life unable for the adjust.

The economy is really in direst acts, the era of mile thumb is employing it, is a sure way final abysmaky. Organizing human and natural resources intricately are the problems of various organization effective planning and decision making process. Other factors such as stage flat iron taxation, economic and political empowerment this research accounting cost accounting as well as management accounting. There are other branches of accounting that would be favorable “Financial Accounting” is that part of accounting which cover the classification and recording at actual transactions of an entitling in monetary terms in accordance with established concepts principles of accounting standards and legal requirements. It involved metamorphosed into a very complex web of inter-grated financial information system which modern organization cannot do without.

It presents a broader, more overall view of the organization with primary emphasis upon classification according to type of transaction rather than the cost and management accounting emphasis on functions, activities, products and process and internal planning control. Cost accounting and management accounting are very much intrinsically inter that is to say that the different between the two superficial so that definition of management accounting is the provision of information require by the management for use, identifying, presenting and interpreting of information used for;

i.            Formulating strangely  

ii.          Planning and controlling activities

iii.        Decision taking

iv.         Optimizing the use of resources

v.           Disclosure to shareholder and other external to entity

vi.         Disclosure to employees

vii.       Safe guiding assets

There are various ways one can involves or participate in management to that there is effectiveness.

i.            Formulating of plans to meet objectives (strategic planning).

ii.          Formulation of short term operation plans (budgeting profit planning).

iii.        Acquisition and use of finance

iv.         Reviewing and reporting on systems and operations

v.           Corrective measures to bring plans and results.

vi.         Communication of financial and operating information.

Cost accounting as the part of management accounting which establishes budget and standard cost of operations, department or products and the analysis of variance profitability or social use of funds.




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