THE RELEVANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS. PROBLEMS AND REMEDIES (A STUDY OF TECNO HOUSE PLC, UYO)

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THE RELEVANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS. PROBLEMS AND REMEDIES (A STUDY OF TECNO HOUSE PLC, UYO)

 

TABLE OF CONTENT

CONTENTS                                                                 PAGES

Cover Page      –      –      –      –      –      –      –      –      –      i

Title Page –      –      –      –      –      –      –      –      –      –      ii

Certification     –      –      –      –      –      –      –      –      –      iii

Dedication       –      –      –      –      –      –      –      –      –      iv

Abstract   –      –      –      –      –      –      –      –      –      –      v

Table of Contents     –      –      –      –      –      –      –      –      vi

CHAPTER ONE: INTRODUCTION

1.1 Background of Study –      –      –      –      –      –      1

1.2 Statement of the Study     –      –      –      –      –      –      3

1.3 Objective of the Study       –      –      –      –      –      –      4

1.4 Research Question     –      –      –      –      –      –      –      5

1.5 Research Hypotheses        –      –      –      –      –      –      6

1.6 Significant of the Study     –      –      –      –      –      –      7

1.7 Scope of the Study    –      –      –      –      –      –      –      7

1.8 Limitation of the Study      –      –      –      –      –      –      8

1.9 Definition of Terms and Acronyms     –      –      –      –      9

CHAPTER TWO: REVIEW OF RELATED LITERATURE THEORY AND ANALYSIS

2.1 Introduction      –      –      –      –      –      –      –      –        11

2.2 Accounting Information     –      –      –      –      –      –        12

2.3 Theoretical Frame-Work of Accounting Information – 12

2.4 Meaning of Accounting      –      –      –      –      –      –        14

2.5 Types of Accounting Information       –      –      –      –        15

2.6 Relevance of Accounting Information to both Internal and External Users –      –      –      –      –      –      –      –      –        17

2.7 Business Organization       –      –      –      –      –      –        18

2.8 The Flow of Accounting Information   –      –      –      –        19

2.9 Element of Financial Statement –      –      –      –      22

2.10 Users of Accounting Information     –      –      –      –        23

2.11 Decision Making       –      –      –      –      –      –      –        23

2.12 Decision Making Process –      –      –      –      –      –        25

2.13 Stages in Decision Making       –      –      –      –      –        25

2.14 The Important of Decision Making to Management of the Organization    –      –      –      –      –      –      –      –      –        26

2.15 Mechanical and Electronic Data Processing      –      –        27

CHAPTER THREE: RESEARCH DESIGN AND PROCEDURES

3.1 Introduction      –      –      –      –      –      –      –      –        30

3.2 Area of the Study      –      –      –      –      –      –      –        30

3.3 Population of the Study             –      –      –      –      –        30

3.4 Sample Determination and Sample Technique   –      –        31

3.5 Source of Data   –      –      –      –      –      –      –      –        32

3.6   Method of Data Collection        –      –      –      –      –        33

3.7 Data Presentation and Analysis Method     –      –      –        34

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA        

4.1 Introduction      –      –      –      –      –      –      –      –        35

4.2 Data Analysis and Result   –      –      –      –      –      –        35

4.3 Test of Hypothesis     –      –      –      –      –      –      –        43

4.4 Discussion of Finding –      –      –      –      –      –      –        47

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Introduction      –      –      –      –      –      –      –      –        48

5.2 Summary   –      –      –      –      –      –      –      –      –        48

5.3 Conclusion         –      –      –      –      –      –      –      –        49

5.4 Recommendations     –      –      –      –      –      –      –        50

References

Appendix

 

 

CHAPTER ONE

INTRODUCTION

 

1.1 Background of the Study

In a business entity be it a profit or nonprofit making organization, information on the daily activities of the business transaction is of vital relevance, accounting information allows any business organization to be able to ascertain its total income and expenses. However, the following are various diversities information could come from which include:

  1. Internal to External

Information comes from the internal factor which is the business organization and communicated to the external factor that is the customers.

  1. External to Internal

External factor now expresses their opinion by communicating ton the internal factor

  1. Within the Business Entity

Information here are communicated within the business entity from the upper level to the lower level from the board of directors to the managers are communicated between one department and unit and another in the same organization.

The various diversities of business information help the business organization in different ways. Information helps to decide when and how to increase its services, to render certain services to its customers. Information from internal to external help the potential customers to know exits once of such business organization and also know their income towards the products of such business entity   in an organization like a limited company (plc). Information on financial position is made available to the public which motivate potential investors to invest into such company, if such financial statement creates a positive impact on the potential customer’s. It can also retain other investors in the organization. Government uses information on the financial statement of the organization to allocate resources available to such organization and the rate term of taxation appropriately. “the principal role of financial accounting and reporting is to serve the public interest by providing information that is useful in making business and economic decision” STORY (1998). Information facilitates the functioning of capital and other markets thereby prompting the efficiency and equitability of scare resources in the economy.

In many business information that are available accounting information was choose for this research as well as other business information such as production information advertising/sales information, legal information that indicate the general inflow and outflow of resources in the organization. Finally, it is worth mentioning here that accounting information unit/department workers as their regular contributions are made know to them and also management is able to improve upon making certain decisions that will match with the available accounting information in such an organization.

1.2 Statement of the Problem

Accounting information is a necessity in today’s business if they are to survive and grow. Most organization in our nation do not keep records of timely transaction of their business which may result into adverse effect on the organization. Many other business organizations do keep records of various transaction but do not base their decision on the available accounting information.

However, some organization lack the knowledge of decision whether to make their products for sale (in the case of manufacturing industries) when and where to buy their goods, whether to employ new workers or maintain old workers to grant credit or not to customers and also whether to borrow money (fund) from banks or not.

The above problems can dwindle the activities of the organization and hence become the cause of the mismanagement of fund, compulsory retirement of competent workers and sometimes total fold of all activities of the organization.

 

1.3 Objective of the Study

The objectives of these studies include the following:

  1. To identify the problems associated with non-keeping of record of business transactions carried out in tecno House.
  2. To identify the role of accounting information for decision making in tecno House plc Uyo.
  3. To identify the relevance of accounting information in management of tecno House plc Uyo.
  4. To find out solution to non-keeping of records of business transaction in tecno House plc Uyo.
  5. To recommend for future research on this study on tecno House plc Uyo.

1.4 Research Question

  1. What information does accounting supply for decision making in the organization?
  2. What are the problems associated with decision making in the organization using accounting information?
  3. Could the be any relevance information in management decision making process that does not come from accounting?
  4. Does the accounting generally furnish the company with the necessary accounting information when needed?
  5. Could there be suggestion on how the problems associated with decision making be solved?

 

1.5 Research Hypotheses

  1. Ho: there is no significant relationship between the accounting information and decision making of tecno House.

Hi: there is a significant relationship between the accounting information and decision making of tecno House plc Uyo.

  1. Ho: there is no significant relationship between the management and decision making of tecno House plc Uyo.

Hi: there is a significant relationship between the management decision making and profit maximization in tecno House plc Uyo.

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THE RELEVANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS. PROBLEMS AND REMEDIES (A STUDY OF TECNO HOUSE PLC, UYO)

 

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