Accounting Information As A Tool For Management Decision Making
Abstract
This exploration work highlights the result of a exploration carried out to examine the applicability of counting information to operation decision making in First Bank of Nigeria Limited, Abdullahi Fodio Road Branch. A substantial aspect of the study involved collecting data through the instrumentation of questionnaires and interview. The data collected were classified, analysed and the probabilities of the findings presented in a table.
The thesis was also statistically tested with ki- forecourt in which the advised value of chi-square equals14.357 and is lesser than the critical value of5.991. This result showed that counting information is a tool for operation decision making hence, the null thesis was rejected and the alternate thesis accepted. Grounded on the findings, it was recommended that directorial decision making in organisations should be an seed of counting information.
CHAPTER ONE
preface
Background Of Study
Account is unnaturally a dimension and communication process used to report on the exertion of profit andnon-profit seeking associations. In other words, it’s concerned with the discipline of recapitulating, recording, analysing and interpreting profitable events and other fiscal conditioning. This process is performed by accountants who furnish operation with the applicable information demanded for effective and effective decision making as to contribute to the hunt for means of surmounting artificial, marketable, governmental and academic problems essential in a dynamic and unpredictable socio- profitable and political setting. The chambers 20th century wordbook defines information as “ intelligence given- knowledge ”. This is because dependable information is necessary before a sound decision involving the allocation of scarce resource( land, labour and capital) can be made, that’s why counting profession is dynamic and there’s always the need for an accountant to continually modernize his/ her knowledge of counting portfolio. Account information is precious because it can be used to prognosticate the fiscal consequences of each indispensable course of action. An association needs quantitative information to serve or make decision. operation uses the stylish available information system to give operation information which is used primarily to negotiate three broad purposes;
i) To give fiscal statement to the interest of external druggies,
ii) To plan the association conditioning and operations in both short and long run, and
iii) To control the result of its operations.
The American Accounting Association( 1966) also defined account as “ the process of relating, measuring, and communicating profitable information to permit informed judgements and opinions by druggies of the information ”. Another description, which is extensively accepted, is by the American Institute of Certified Public Accountants( 1970) defined account as “ the art of recording, classifying and recapitulating an event which is in part at least of a fiscal character and interpreting the result thereof ”.
The below description place emphasis on the use of counting information for assessing the results of the history and present conditioning and making opinions concerning unborn conduct. The information is primarily fiscal and generally stated in financial terms. It’s the process by which the profitability and solvency of an association can be measured and also periodic information demanded as a base for making business decision and applicable control that will enable the operation to guide the organisation on a profitable and solvent course. The account information is set and presented in form of fiscal statement in agreement with the account standard issued by the Nigerian Account Standard Board Act( 2003) which are the means of conveying to operation and interested outlanders a terse picture of the profitability and fiscal position of the business. The form of preparing and presenting counting information includes the following; the profit and loss account, balance distance, income statementetc.
Hence, account is divided into three( 3), videlicet;
i) fiscal account
ii) Cost account, and
iii) operation account
According to Leopold( 1982), he said that, fiscal account “ is concerned with furnishing information on the fiscal conditioning of the association for the benefit of both internal and external druggies ”. It’s also the bracket, recording of financial sale of an reality in agreement with establish generalities, principles, account standard and legal demand and donation of a view of those restatements during and at the end of an account period.
While cost account on the other hand produce information about cost that are incurred by association in running the association so as to achieve the objects on which it’s set up.
Eventually, Calvin( 1982), stated that operation account “ is concerned with furnishing information to operation for the purpose of planning or provision of information demanded at all situations ”. operation and creditors use these reports internally.
Stamford( 1978) stated that counting information has played a part as “ a tool for operation decision making ” because it serve as “ a literal record of contractual scores between the outlanders with the end product in form of fiscal statements to report the fiscal status of an association at a point in time ”.
still, the applicability of counting information to effective operation decision making in numerous organisation is still not appreciated but with the test to be conducted in this exploration, the degree of counting information as a “ tool for operation decision making ” shall be easily understood.
Statement Of Problem
operation who takes wrong decision always end up not achieving their set pretensions and objects. numerous directors who suppose that they can operate successfully without the use of information handed by their accountants, leads to profitable failure similar as liquidation of numerous banks. So, effective decision or operation decision can not be taken by directors if the information handed by their accountants isn’t duly stuck to. Account information answer questions similar as;
i) Arethedisclosuresof counting information accurate and dependable?
ii) Is account information prepared with General Accepted Accounting Principle( GAAP)?
iii) Does counting information as a tool for decision timber satisfy the operation?
Points And Objects
The purpose of this study is to establish the applicability of counting information as a tool for operation decision- timber.
The attachment objects of this study are;
i) The introductory issues of how the account information systems are used to perform the generally recognised fiscal and operation function in First Bank Nigeria Limited, Abdullahi Fodio Road Branch, Sokoto.
ii) To precisely look at the need for counting information for operation decision- timber.
iii) To make suggestions as to the utility of counting information to the druggies in general.
iv) The exploration seeks to know the extent to which the operation of the organisation under review have used the account information.
Significance Of Study
The study is aimed at establishing whether there’s any correlation between the account information handed by the account department( accountants) and the decision made thereof by the druggies of the information, most importantly operation of First Bank of Nigeria LimitedAbdullahi Fodio Road Branch, Sokoto.
These groups will profit from the exploration videlicet;
i) The association under study
ii) Business directors
iii) unborn experimenters, and
iv) The experimenter tête-à-tête.
i) THE ORGANISATION UNDER STUDY
The operation of the organisation( Bank) will use the exploration where applicable as a tool for formulating programs for the establishment as a standard of assessing counting information and control of their accounts department through fiscal decision.
ii) BUSINESS directors
The work will also go a long way to educate directors on the applicability of a sound account information in decision- making process of their organisation and latterly on its growth.
iii) FUTURE Experimenters
The work will serve as a source of secondary data to unborn experimenters who intend to carry out further exploration work on “ counting information as a tool for operation decision making ” or any related content. It’ll also help scholars in the account department to have in- depth knowledge of the practical operation of counting information.
iv) THE Experimenter tête-à-tête
The exploration will enable us imbibe thorough knowledge of the uses of counting information as a tool for operation decision timber. It’ll also give foresight on the connection of counting information on the operation of the Bank.
exploration thesis
Abubakar( 2004) said, “ thesis is a theoretical conceptualization or guess about how the experimenter thinks the result should look like or as statement that was generally linked to the proposition being treated and it was tested in a testable form to prognosticate the relationship between two variables ”.
For the purpose of this study, the following thesis was available for testing;
Ho – There’s no statistically significant difference in the replier size among those who accept that counting information aren’t tools for operation decision timber.
H1 – There’s a statistically significant difference in the replier size among those who accept that counting information are tools for operation decision timber.
compass OF STUDY
The exploration work will cover certain aspect of counting systems functional in First Bank of Nigeria Plc( as a case study of Abdullahi Fodio Road Branch, Sokoto and types of reports prepared for decision timber. The relationship that live between counting information and operation decision timber will be examined and some affiliated literatures in the field of the study will be reviewed and incorporated.
The study will also be limited to the significance of each branch of account and the type of information they prepare, utility of each of the information prepared by individual member of the branches of account, exemplifications fiscal account section, operation account section and cost account section.
LIMITATION
The design is limited by numerous factors which posed as snags or obstacles to the smooth compendium of the work. It’s important that druggies of the work note the limitations in the course of carrying out the work. The significant problems faced include the following;
ECONOMIC TREND
The global profitable meltdown, which supposedly affected the Nigerian frugality ate deep into the Banking sector of the frugality destroying the shares value of all fiscal institutions in the Country and redounded in poor performance. This has a cerebral impact on the repliers.
FINANCE
The profitable nonacceptance coupled with affectation has decreasingly raised the cost of accoutrements . This led to the devaluation of Naira affecting every aspect of the Nigerian frugality. The impact of this on the study is enormous limiting visits to the repliers and qualitative accoutrements for carrying the study.
TIME
Time is another limiting factor which acted as a hitch to the completion of the design, though lengthy period was given for the submission of the work but considering the academic pressure coupled with the jotting of the design made effects not too really easy for the exploration.
NON-DISCLOSURE
There are some vital as well as important information which the Bank refused to expose for security reasons. Deficient and lack of vacuity of records, which was considered to be veritably useful, were appertained to as nonpublic.
still, time and fiscal constraints are the most poignant limitation to the study. Eventually, despite all limitations and constraints, the exploration contained the necessary applicable resource material and to- date data attained, analysed and handed in the work.
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