THE RELEVANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING (A Case Study of Okin Biscuit Nigeria Limited, Offa)
The project concentrate mostly on the relevance of accounting information to management decision making process of which Okin Biscuit Nigeria limited of is the case study.
Financial accounting deals with the periodic measurement and reporting of the profit or loss and asset and liabilities of organization and Balance sheet of the year ended. The balance sheet is a statement of financial position and it report is on the status of the assets as individual items as a class .
Data’s sources through the case study has revealed on design by the researcher to fill by the staff of the organization in accounting department and information that have already been recorded in the subject data in various document including book annual report of the organization.
Finally, with my recommendations, we hope stepping stone for further study.
TABLE OF CONTENTS
TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SCOPE AND LIMITATION OF THE STUDY
1.5 SIGNIFICANCE OF THE STUDY
1.6 RESEARCH METHODOLOGY
1.7PLAN OF THE STUDY
1.8 DEFINITION OF TERMS
2.0 HISTORICAL BACKGROUND OF ACCOUNTING
2.1 ACCOUNTING AND SOCIETY
2.2 ACCOUNTING SCOPE AND FUNCTIONS
2.3 INTER-RELATED ROLES OF BRANCHES OF ACCOUNTING
2.4 ACCOUNTING INFORMATION DEFINED
2.5 USER’S OF ACCOUNTING INFORMATION
2.6 LIMITATION OF ACCOUNTING INFORMATION
2.7 ACCOUNTING POLICIES
2.8 DECISION MAKING
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 DATA ANALYSIS
4.1 INSTRUMENT OF ANALYSIS
4.2 RETURN OF QUESTIONNAIRE
4.3 TEST OF HYPOTHESIS
1.0 HISTORICAL BACKGROUND OF ACCOUNTING
The accounting can be traced back through history, the history accounting dates back to ancient Mesopotamian and Egyptian time, when the need for account brought about development of writing.
Accounting records dated several years back can be found indifferent part of the world, showing the important of accounting information at all level of development.
The discovery of zerion parayric in 1915 led to the discovery of information about the construction projects, agricultural activities and business operation of the private estate if Apolanmus.
Zerion used a system with provision for responsibilities accounting, a written record of all transaction, a personal account for wages paid to employees, inventory and record of asset acquisition and disposal. There were also evidence of audits.
However, effort to improve accounting only developed around 1930, although accounting 0practices has been in existence for long before. The turn of the thirteenth century brought about the emergence of DOUBLE ENTRY BOOK KEEPING which constitutes the major turning point in the development of accounting. Its development provided some notable advantage over earlier method of keeping records.
⦁ Its none orderly and comprehensive means of keeping record and
⦁ It’s a check on the accuracy and completeness of recording transaction.
⦁ Its was however, observed that these sorts of the owner of business and its provide no basis for the measurement of profit and valuation of asset.
⦁ It emphasis was on the recording of financial transaction in manner most suitable to the owner of the business.
However; the replacement of small companies by large industries and factories brought about the industrial revolution, led to a more modified system of accounting. This because financial for project how require more finance from the combined investment of a large number of individual against the previous financing by single individuals.
Accounting has developed over long period of time in response to financial information need for decision making in business. Decision makers operate in a complex economic environment that constantly changing. The information need of decision maker change with the environment and accounting must adapt to satisfying accounting must been as vital and dynamic as a society that it serves and to function well it must adapt to the requirement of organization and to change in modern technology matulich (1980).
1.1 BACKGROUND OF THE STUDY
Accounting is becoming indispensable in a modern society. Accounting provide information, which is vital to the economic decision that have to be made by the individual, the company and government, large companies requires the services of accounting to understand what goes on in fan – flung branches, to evaluate the effectiveness of company policies on operation an the impact of government fiscal and instrument. This becomes over more time with massive growth of individual, organization. Just imagine the difficulties of knowing anything significance about the operation and performance of the UAC, Lever Brother, mobile, Pz Industries, Power Holding Company Nigeria or Nigeria Railway Corporation without accounting information.
Decision – making is essentially the process of adopting a particular course of action in preference to alternative possibilities.
The responsibilities of making strategic decision relating to the smooth operation if whole organization rest with the management responsibilities for getting things done and can be found in government institution, business, professional bodies, non – profitable organization. The management is responsible for getting thing done and can be found in public and government institution professional bodies.
Management must be able to evaluate the accounting data, in order to decide on what courses of action to take. The financial information or data so used are generated from the financial activities of the organization..