Effect Of Accounting Information On Decision Making Process

Effect Of Accounting Information On Decision Making Process

ABSTRACT

The Nigerian Breweries Plc was specifically mentioned in the study as a way to examine how accounting information affects the decision-making process. The goal of the research was to comprehend Nigeria Breweries Plc’s operations, with a focus on the decision-making process. Additionally, the program’s issues, possibilities, and consequences were looked at. Therefore, the study’s goal is to show other departments how to start gathering useful accounting information. The first step was the distribution of questionnaires, of which thirty were finished and returned using stratified random sampling. Secondary data were acquired from the system, and related literature dealing with the impact of Nigeria Breweries Plc was also consulted. Later, the results were analyzed and interpreted. According to the report, accounting information is a crucial component of management strategy for greater productivity, efficiency, and performance—even though it comes with a sizable financial burden. I’ll conclude by saying that different organizations should attempt to use accounting information in decision-making for the smooth operation of their businesses.

CHAPITER 1

1 INTRODUCTION

This study of Nigeria Breweries Plc, Nite Mile Corner Enugu examines the impact that accounting information has on a company’s ability to make decisions and examines how that impact relates to Nigeria Breweries Plc, Nite Mile Corner Enugu.

reaching a decision is just selecting one option from a range of choices, or it may also be the process of researching, weighing, and comparing multiple options before reaching a final decision.

1.1 Study Background

Nigerians have the hope of a better tomorrow with the view of independence. With the help of our own social, economic, and political endeavors, we were able to feed and clothe ourselves. As a result, it appeared that our hopes would not be realized, and the nation grew to be as resilient as an iroko tree. The notion was that Nigerians would suffer the most as a result of the economic crisis rearing its ugly head. Financial institution industries of all sizes are suffering alarmingly as a result of the economic crisis, and those who provide financial services have been proactively preparing their businesses for this grim future by laying out a variety of contingencies, such as price increases for goods, the adoption of advantageous production methods, marketing initiatives, etc.

Any company, institution, or establishment that wishes to survive Nigeria’s current depressed economic climate must make the proper choices and devise aggressive business plans. The cost of everything that is convenient, from garri and bread to electronics and educational materials, not to mention the lifeblood of every man on earth, gasoline, has currently made life impossible for the adjust.

The economy is in serious straights, the mile-thumb era is employing it, and it will undoubtedly end in abysmal gloom. Complex resource management is a challenge for many organizations, making planning and decision-making processes ineffective. This research considers cost accounting as well as management accounting, in addition to other criteria like stage flat iron taxation, economic empowerment, and political empowerment. There are more accounting specialties that are advantageous. The area of accounting known as “financial accounting” deals with categorizing and recording actual transactions involving entitlements expressed in monetary terms in line with accepted notions, accounting rules, and legal obligations. Modern organizations cannot function without the extremely intricate web of integrated financial information systems that it involved.

The organization is seen in a broader, more comprehensive light, with a focus on classification according to transaction type rather than the functions, activities, products, and processes that cost and management accounting place a greater emphasis on, as well as internal planning control. Cost accounting and management accounting are very closely related, which means that there are only minor differences between them. Accordingly, management accounting is defined as the act of providing information needed by management for use, as well as for identifying, presenting, and interpreting information used for;

i. Making peculiar formulations

ii. Organizing and directing activities

Making decisions, or iii.

iii. Improving how resources are used

v. Disclosure to shareholders and other parties outside of the entity

Disclosure to staff members

vii. Safe guiding resources

There are several methods to get involved in management or to contribute to its effectiveness.

i. Coming up with plans to achieve goals (strategic planning).

ii. Creation of short-term operational plans (profit planning and budgeting).

iv. Obtaining and using financing

iv. Analyzing and summarizing systems and operations

v. Corrective actions to bring plans and outcomes.

vi. Information sharing on finances and operations.

As a component of management accounting, cost accounting develops a budget, determines standard costs for activities, departments, or products, analyzes variances in profitability, and considers how money is used for social good.