THE ROLE OF THE MANAGEMENT ACCOUNTANT IN PROFIT MAXIMIZATION
ABSTRACT
The management accountant is identified as one of the key officers in the accounting department of any manufacturing company.  He has the duty of providing the required professional information reroute to achieving the organization goal.  Some of his functions include planning and controlling activities formulation of strategy decision taking optimizing the use of resources etc. The management accountant by virtue of his duties participants indirectly in the management process. This research work aims to bring to the knowledge of its user the role the management accountant plays in the achievement of the goal of every manufacturing outfit which is profit maximization. The work is organized in five chapters, chapter one is the introduction Part which include the background of the study statement of problems significance scope and limitation of the study. Chapter two is the literature review this is where the pinions of various authors in related subjects are reviewed. Chapter three deal with the research design and methodology. This could be seen as a framework or a plan that is used in collecting analyzing the data for the study. It reveals the sources of the data the sample used and the method of investigation. In chapter four the data are being presented and analyzed the hypotheses stated were adequately tested and decision taken.  Finally in the fifth chapter the finding of the research work is disclosed and recommendations and suggestions are given for the benefit of the user.
 TABLE OF CONTENTS
Chapter One
1.0  Introduction               
1.1      Background of the study                           
1.2      Statement of the study                      
1.3      Objective of the study                       
1.4      Research Questions                           
1.5      Research Hypotheses                         
1.6      Scope of the study                            
1.7      Limitation of study                            
I.8   Significance of the study                    
1.9 Definition of Terms                             
Chapter Two
2.1      Definition of Profit Maximization          
2.2      Functions of management accountant in relation to profit maximization                                  
2.3      Pitfall in Setting Standard                   
2.4      Monitoring Actual Cost                       
2.5      Uses of Marginal Costing Principles             
2.6      Importance of Budgeting                   
2.7      Principles Budgeting Factor                 
2.8      Ways of regulating cost in a manufacturing
Company                                                
2.9      Planning for Cost Reduction                
CHAPTER THREE
3.0  Research design and methodology
3.1  Introduction                                            
3.2  Research Design                                      
3.3 Population of the study                             
3.4  Sources of Data Collection                        
3.5  Data Treatment Technique                        
3.6  Validity and Reliability of Test                           
CHAPTER FOUR
                Data Presentation and Analysis          
4.2  Analysis of Data                                       
4.3  Test of Hypothesis                                   
CHAPTER FIVE
5.0  Summary of findings conclusion and recommendation
5.2      Summary of Findings                               
5.3      Conclusion                                              
5.4      Recommendations                                      
Bibliography
Appendix
 CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
Modern business organization operates in an environment that is material shortage crises inflation and environment regulations to mention a few. And the traditional method of analyzing problems and making decision have been found in capable of effectively handling this increasing complexities due to the change that exist within the environment it becomes an important characteristics of a good management to be able to evaluate the past changes to react to current changes and to be able to predict the future changes. In this direction management needs information continually which will help in the planning and controlling of the operation of the organization.         
The need for accountability has given rise to cost accounting system, which provides information that is useful to management for internal reporting objectives.
Due to the complexities in the system of most organization the system of cost accounting is equally becoming complex and resultantly a body of professional with special expertise in this is created. This body of professional is called the management accountants and the area of study is know as management accounting
Woody et al (1985), define management accounting as the process of identification measuring accumulating analyzing preparation interpretation and communication of financial information used by management to plan events and control within an organization and to ensure proper use and accountability of its resources form the above definition it means that the management accountant has a range of function to carry out in n organization.
According ICMA “management accounting is the presentation of accounting information in such a way as to assist management in the creation of policies and in the day-to- day operation of an undertaking”.  To achieve this aim he management accountant is interested in the past the present and the future. Useful information can be extracted form past result which together with report of current performance can point the way to immediate management action.  In the same vein forecasting the future enable the management to evaluate current result more readily and may also reveal areas of business which requires corrective actions.
 Fanning (1983), defined management accounting as “The application of professional knowledge and skill in the preparation and presentation of accounting information in a way to assist the management in the formulation of polices and in the planning and control of operating of the undertaking it is designed to provide in formation for internal problem solving. The management accounting system of planning and control is designed to spur up and help chief executive search for and selecting shorting run and long run goals and implementing plans apprising performance and pin- pointing deviations from plan.
To be able to do these management accountant must posses some knowledge of account. He must have a thorough understanding of the operations of the organization in which these systems are implemented and the appropriate technology to apply in each case for the provision of management information. Information provision depends solely on the type of business.  It is obvious that the management of a manufacturing company will need information that will enable them consider the factor affecting cost of production cost of classification cost reduction product pricing market shares of the products choice of the product lines diversification and investment.  However a trading company needs information that will concentrate decision on customer’s demands advertisement and product branding.
The management accountant uses data  from the financial and cost accounting system to perform his ask he conducts special investigations and uses accounting and other appropriate techniques from statistic and operation research. He considers the human element in all activities so that at all times he will be provided with information which is relevant for carrying out his work effectively so as to maintain his value or even enhance it.  In addition he interprets data and communicates same to the management.
The inability of the management accountant to perform his duties would result in shortage of in information for long and short run planning system and he necessary control to be made the basic objective behind the continuous existence of business organization is the need to increase its wealth through profit making. It actually ranks lightest among the objectives of business organizations and the management needs accurate and timely information for decision making in order to achieve this noble objective.
Weldi (1976) opines that, profit maximization can only come about through an efficient and effective management process and Nigeria being a developing country it is clear that the cost of running a business is increasing at a very high rate.  Many manufacturing companies in Nigeria has this as a problem them struggle to maintain reasonable amount of earning in a situation where costs are rising there by making profit margin more and more difficult to sustain, mean while the Nigeria manufacturing companies as reported by he manufacturing association of Nigeria (MAN) in its 1997 economic review are faced with escalating costs of production arising from the adoption of macro-economic policies which are inflationary in nature. This trend reinforces the imperativeness of the application of sound management accounting technique in the manufacturing companies.
Adewumi (1989) posits that management practice is yet to have its rightful place in Nigerian manufacturing companies.  The implication is that the principle of management is rarely applied in most manufacturing firms in Nigeria.  A careful study of Nigeria manufacturing companies shows as decrease in productivity this is as a result of gross incompetence and lack of motivation on the part of the top management and their subordinates consequently there has with the general planning and control of the firms resources thus profit maximization is firmly rooted in the effectiveness of the planning and control of the firms resources.  Generally speaking the role of a management accountant is based on his technical knowledge experience and judgment in contributing to the success of the manufacturing industry.
       STATEMENT OF PROBLEM  
There has been a considerable lack of appreciation by many as to the intrinsic value of management accountants.  Manufactures like other business executions have had to appreciate where such value have stimulated the development of management accounting as an information tolls in business organization.  Such event includes the increased competition in business and rapidly developing technology. The resultant changes that have emerged have intensified mangers need for information that is continually for financial information beyond that contained in the traditional income statement and balance sheet.
Over the last three decades product have become obsolete as an alarming rate. The advent of scientific breakthrough have resulted in the development of many new basic components such as the transistor and electronic “chip” which have literally revolutionalized many industries and their products. Scientific researcher reports that this revolution is only he beginning. Drastic changes have taken place in production method over the last three decades the term ‘Automation’ has crept in and today many products are produced ritually untouched by human hands. For example oil refinery operations are controlled by massive computer networks machine tools are electronically controlled and there are even some entire manufacturing plan where workmen do little more than monitoring instrument panel modes of management and method of decision making have been affected by the development of new and powerful quantitative tolls such as linear programming probability analysis and decision theory. These new tolls which have come to be from the mathematical and statistical sciences are becoming indispensable in day- to day- decision making.
The problem of increase cost of production  have forced   the companies involved to make many adjustment which include modification of product changes in the methods of production and even marketing and the discovering of new sources of financing production some company go as far as reducing the quality of raw material and end up producing less quality producing which cannot help matters in  the long run.
The economic impact of these and other factors have been far reacting as manger of companies are now competing and cost of production escalating these has in effect expanded the role of management accountant as an information tools over the years.
There is also the problem of poor inventory management which leads to overtaking there by tying down the company’s working capital.
Another kind problem that is facing some companies is the installation of improper plans to reduce cost of production so as to maximize profit e.g. making use of low quality raw material.            
       OBJECTIVE OF THE STUDY
The objectives of the study is specially aim at the following;
1.  To find out if there is any relationship between management accountancy and profit maximization.
2.  To assure the effect of management accounting and profitability.
3.  Time stand will also seek to view the accounting and profit maximization.
4.  To find out if there is any relationship between management accounting and profit planning.
1.4  RESEARCH QUESTIONS
The research question of this study are as following:
1.  Is there any relationship between management accounting and profit maximization?
2.  Is there any relationship between management accounting and profitability?
3.  To what extent has effective accounting help in profit maximization in a fun?
4.  Is there any relationship between management accounting and profit planning?
        RESEARCH OF HYPOTHESES
H0:  There is no relationship between management accounting and profit maximization.
H1:  There is relationship between management accounting and profit maximization.
 H1:  There is a positive relationship between management accounting and profitability
H0:  There is no positive relationship between management accounting and profitability
H0:  There is no relationship between management accounting and profit planning.
H1:  There is relationship between management accounting and profit planning.
1.6        SCOPE OF THE STUDY
In a bid to keep the project within a manageable limit and in view of the limited time and resources available to the researcher he has localized and confined the study to the manufacturing companies in Enugu.
1.7        SIGNIFICANCE OF THE STUDY      
The management accountant makes the necessary information available to the management by the application of his skill and knowledge.
The significance of this study is to bring to the notice of the management the exemplary role of the management accountant and the techniques he use to provide information and also how these would affect the operations and the attainment of the organizational goal if these information provided are not recommended  for use by the management.  With such knowledge and information put to use management would be able to plan control the organization such that the cost of operating the business will be at a minimum while profit will be enjoyed at the end.
        DEFINITION OF TERMS
1 Profit: Profit is defined as a deduction of expenses after
a business (Eze, 2001:9).
2  Management:  Management is an act of science of achieving the objective of a business into most efficient way (Eze, 2004:3)
3. Accounting: Accounting is a systematic process of recording, reporting and analysis of financial transaction of a business (Okechukwu, 2000:45).
4. Profitability:    Profitability is a class a financial matric that are used to access a business ability to generate earning (Eze, 2001:12).
3            Firm:      Firm is a noted as a partnership a association of two or more person a entities for the purpose of carrying on a business (Ani, 1999:131)
4            Planning: Planning involves selecting of strategies and objectives policies, programme and procedures for achieving them for entire enterprises organized fact (Egbo, 2000:2).
5            Role: Role is defined as a prescribed or expected behavior association with a particular position or status in a group.