THE ROLE OF MANAGEMENT ACCOUNTANT IN DECISION MAKING WITH EMPHASIS ON INTERNATIONAL TOBACCO COMPANY PLC ILORIN BRANCH WHICH IS PRIVATE OWNERSHIP COMPANY
TABLE OF CONTENT
TITLE PAGE PAGES
TABLE OF CONTENT V
1.1 BACKGROUND OF THE STUDY
1.2 OBJECTIVE OF THE STUDY
1.3 SIGNIFICANCE OF THE STUDY
1.4 STATEMENT OF THE STUDY
1.5 SCOPE OF THE STUDY
1.6 RESEARCH METHODOLOGY
1.7 PLAN OF THE STUDY
1.8 DEFINITION OF THE TERMS
2.1 LITERATURE REVIEW
2.2 WHO IS A PRODUCT MANAGER
2.3 FUNCTION OF MANAGER
2.4 THE IMPORTANCE OF PLANNING
2.5 WHY PEOPLE FAIL IN PLANNING
2.6 ESTABLISHMENT OF STANDARD
2.7 THE PRINCIPLE OF EFFECTIVE CONTROL
2.8 THE DIFFERENCES BETWEEN FINANCIAL
2.9 A MANAGEMENT ACCOUNTANT
2.9.1 THE DUTIES OF MANAGEMENT ACCOUNTANT
2.10 DECISION MAKING
2.10.1 CLASSIFICATION OF DECISION MAKING
2.11 DIVIDEND DECISION
2.12 THE PROCESS OF DECISION MAKING
3.0 RESEARCH METHODOLOGY
3.1 POPULATION OF THE STUDY
3.2 SAMPLING METHOD
3.3 SOURCE OF DATA COLLECTION / DATA COLLECTION TECHNIQUES
3.4 METHOD OF DATA ANALYSIS
3.5 HISTORICAL BACKGROUND OF THE CASE STUDY
4.1 ANALYSIS AND INTERPRETATION OF DATA
4.2 INTERPRETATION OF THE FINDING
In all the varied field of human activity, we are concerned to used of limited resources that are available to us. Thus the intention is to obtain the greatest out put from a given input and in measuring this we may state how efficiently the input has been used.
While the measurement of efficiency may be done in quantitative terms e.g. a number of yam tuber from an acre of land. It is normally essential to express inputs and outputs in monetary term as it is the common denominator of resources we use. By recording these monetary values the accountant is able to measure the result of industrial and commercial activities and inform those responsible for them.
The work of the accountant has develop over the year from accurate accounting for movement in cash and transaction with third parties, it now includes the provision of financial data and with which management may plan future activities and of data with which to measure how efficiently activities are being managed.
The earlier type of work we may call financial accounting and development is cost accounting and management accounting uses cost and financial data advice management in planning and controlling the enterprise.
Management needs guidance in the interpretation of cost information, if wise decisions are to be made in such matters as costing of products and services, production policy and pricing of products. A management system is therefore necessary in planning each factor in the cost each products, the ascertainment and analysis of cost of products and the interpretation and communication of cost of data for management decision making.
For any business to be successful, it needs the assistance of the management accountant.
A management accountant provides reliable, relevant quantitative and qualities information for the purpose of assisting in the managerial formation of planning, controlling, organizing, communicating and decision making.
Since resources are limited in supply for producing a product or product a management accountant has to form a policy, the limited resources in order to achieve his aims, the aim of any business enterprise is to make profit, therefore a management accountant endures that limited resources are economically, efficiently and effectively used to take decision on how to maximize profit on business.
Therefore, a management account is concerned withy the provision and interpretation of relevant qualitative and quantitative information to assist the management in planning, motivating and decision making performance appraisal.
1.2 STATEMENT OF THE PROBLEM
Despite the fact that the role of a management accountant in decision making there is still some constraints that can hinder the roles of management accountant.
The following are the constraints;-
What are the likely functions of managers?
⦁ Does planning have any important
⦁ What are the rational or reason why people fails in planning.
⦁ Is there any establishment of standard in the roles of management accountant in decision making?
⦁ Does management accountant in decision making have any principles of effective control.
⦁ What are differences between financial accounting and management accounting?
1.3 AIMS AND OBJECTIVES
The project work takes a cursory look on the roles of management accountant in decision making therefore the aims and objectives of the study includes the followings;-
⦁ To highlight the functions of manager.
⦁ To enumerate the reason why people fails in planning
⦁ To examine the establishment of standard in the roles of management accountant in decision making.
⦁ To expatiate some certain importance of planning.
⦁ To discuss the principle of effective of control of management accountant in decision making.
⦁ To critically examine the differences between financial accounting and management accounting.
1.4 SIGNIFICANCE OF THE STUDY
The research has shown that management plays a vital role in decision making.
The roles of management accountants is very important to every business sector and non-profit making sector like thus government sectors, business enterprises to be successful, it needs a management accountant. He helps to plan, control and organize the resources in an organization in order to achieve its aims. However, also the future researcher and other students will benefit from the study in order to have an independent knowledge on the roles of management accountants in decision making. It makes them to be locally reasons in their decision making.
To bank, it will provide information for the level of management to make a reasonable decision to carry out there daily activities. It will also minimize the fraud in banking industries.
To general public, it enables them to be problem solver through their finding.
1.5 RESEARCH METHODOLOGY
Based on the roles of management accountants in decision making, both primary and secondary sources information is used in collecting information for the completeness of the project work.
A primary source includes material from the case study (I.T.C), response from the questionnaire, interviews observation.
Secondary sources of information includes text books financial reports, hints about management accounting in decision making and all text books which decision making are quoted explain in them.
The instrument which is used in collecting the primary source include both interview and questionnaire.
Survey is used to analysis the data collection in comparing of data collected towards the roles of management accountant in decision making.
1.6 SCOPE AND LIMITATION OF THE STUDY
The project covered the roles of management accountant in decision making. It emphasized much on how a management accountant could help the management to choose a correct and favorable decision making in an organization. The scopes will not go beyond the roles of management accountant in decision making of international tobacco company, Ilorin branch.
The research work was so restricted by insufficient fund lack of enough times, lack of corporation from the respondent of case study institution. All these factors hinder through execution of the research work.
However efforts are made, that the constraints and limitation will not affect the effective completion of the research work.
1.7 DEFINITION OF TERM CONCEPT
I.T.C:- International Tobacco company.
DECISION MAKING: - Decision making is one of the most crucial activities of management. Its means that necessity to decide the everyday pre-occupation of management in all types of organization whether small or large enterprises.
MANAGER: - A manager is a person that oversees the affairs of an organization. Its also plays some roles such as plan, organize and control. Etc.
MANAGEMENT: - The term management to the task or activities involve in managing an organization, planning and organizing, leading and controlling.
ORGANIZATION: - A structure goods of peoples brought together to attain certain goals that the same individual could not react alone.
ACHIEVEMENT MOTIVE: - It is the desire to succeed. Some standard of excellence or in competitive situation.
GOALS: - Goals is what an organization is committed to achieves
2.1 LITERATURE REVIEW
Management covers a lot of ground. Its focus rangers from understanding entire industries to making and implementing decision to operate in foreign countries. Its leadership, corporate culture, business strategy, organization design, motivation and ethics all rolled up into one. But above all it’s supremely challenging and we think, for that reason its also great fun. We expect that student who read this book we learn a lot about management, about making a difference, about putting together, about getting results and have a good time doing it.
Like other aspects of business, effective management is the result of hard work. The truth is that successfully managing others is an enormously demanding task’s as writers with a lot of experience in both academic and professional setting, we demanded a lot from ourselves when we set out to revise management.
What is management?
According to PETER DRUCKERS, management is work and it has its own skills, its own tools and its own techniques
It can also be defined as the art of getting things done through others efficiently and effectively.
It can be defined as a process by which cooperative group or a person who directs the action of others towards common goals.
According to HENRY FRAYO, management could be defined a planning, controlling organizing, leading directing and decision making. And he was the person that introduced the 14 principles of management which there are:-
1. DIVISION OF LABOUR: - The more people specialize the more efficiently they can perform their duty.
2. AUTHORITY:- Managers have the right, the authority to give order to get things done.
3. DISCIPLINE:- Members of an organization need to respect the rules and agreements that govern it.
4. UNITY OF COMMAND:- Teach employee must re-issues instructions about a particular operation from only one person to avoid conflicting instructions and confusion.
5. UNITY OF DIRECTION:- Managers should co-ordinate the effort of employees working on projects but only one should be responsible for and employees behavior.
6. SUBORDINATION OF INDIVIDUAL INTEREST TO THE COMMON GOALS:-The interest of individuals employees should not take precedence over the interest of the entire organization.
7. REMUNERATION: - Pay for work done should fair to both the employees and the employer.
8. CENTRALIZATION:- Managers should retain final responsibility but should also gives their subordinate enough authority to do their jobs properly.
9. SCALER CHAIN:- A single uninterrupted line of authority (often represented by the neat boxes and lines of an organization chart) should run rank to rant from top management to the lowest level positions in the company.
10. ORDER: - Materials and people should be in the right place at the right time, in particular, people should be in the jobs or positions best suited to them.
11. EQUITY: - Managers should be both friendly and fair to their subordinates.
12. STABILITY AND TENURE OF STAFF: - A high rate of employee turnover is not efficient.
13. INITIATIVE:- Subordinates should be given the freedom to formulate and carry out their own plans.
14. ESPRIT DECORP OR TOGETHERNESS:- Promoting team spirit gives the organization a sense of unity..