The Role of Accounting Information in Production Decision Making

 The Role of Accounting Information in Production Decision Making

The Role of Accounting Information in Production Decision Making


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Abstract on The Role of Accounting Information in Production Decision Making

Managers make decision in order to choose from alternative course of action at a dynamic rate. This is done in order to achieve the set objectives of the firms in which they manage. To make these decisions, accounting information are used as a necessary guide.

Manufacturing firms make use of accounting information which have been complied from source documents, records and statement in accordance with systems. These information gathered are used to make effective production decisions which would achieve the objectives of profit maximization cost minimization, Production efficiency, proper resources allocation etc.

This study is aimed at discovering the quantitative attributes to accounting information which makes it an effective tool in the production decision-making and if the information generated is utilized in effective manner. Although, it is evident that decisions made in manufacturing firms are determined by the accounting information to a varying extent. It is hoped that the recommendations will show the importance of accounting information and that managers who make decision will comprehend it as a vital necessity in decision – making.


Chapter One of The Role of Accounting Information in Production Decision Making


Manufacturing firms in the present economy have to contend with a lot of economic variables which have been aimed at consolidating the gains of structure (adjustment programmes (S A P) since the first step introduced by SAP was self reliance, most manufacturing forms have had to consider the local sourcing of raw materials instead of the dependency on imported materials for their production processes. Other factors such as inflation, taxation, instability both economic and political, competition and market forces have caused a change in the out look of production.

In order to achieve their objectives the manufacturing firms have to make concise decision which would be relevant to the restricting of production processes and in profit maximization so as to survive in our ever- changing




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