MANAGERIAL ACCOUNTING: THE ROLE AND IMPORTANCE IN DECISION MAKING IN AN ORGANIZATION
(A CASE STUDY OF VITA FOAM PLC, SAPELE)
ABSTRACT
This project attempts to establish the vital role which application of managerial accounting has played in decision making in an organization using Vita Foam Plc as a case study. This research work aims at examining the importance of managerial accounting in decision making in an organization. This study is significant as it will help to reduce the risk involved in decision making in organization for the purpose of this study, the work is sub-divided into five chapters, chapter one deals on the background of the study, which include statement of problems, purpose of the study, definition of terms etc. Chapter two focused on literature review which borders on related works at various professional and intellectuals, chapter three emphasis on the method of data collected and analysis. The data collected through questionnaires were analyzed with tables of percentages with sample size of 29. Chapters four deals with presentation of analyzed data. Finally, chapter five discuss the research findings, conclusion, and recommendation for the important of managerial accounting in decision making in an organization and further research.
TABLE OF CONTENTS
CHAPTER ONE: Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research question
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of key terms
CHAPTER TWO: LITERATURES REVIEW
2.1 Introduction
2.2 The Relevant of Management Accounting
2.3 The Challenges and Responsibilities of Management Accounting
2.4 Functions of Management Accounting
2.5 Decision Making and Management Accounting
2.6 Types of Decision Making
2.7 Management Accounting Techniques Used in Decision Making
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population and sample size
3.3 Sample Size
3.4 Sample techniques
3.5 Instrument of Data Collection
3.6 Validity of Instrument
3.7 Reliability of the Instrument
3.8 Method of data collection
CHAPTER FOUR: DATA PRESENTATION AND ANAL
4.1 Introduction
4.2 Presentation and Analysis of Result
4.3 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of the Study
5.2 Conclusion
5.3 Recommendation
5.4 Suggestion for further study
Reference
Appendix I (Research Questionnaire)
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
There is no accurate account when accounting stared. However, available information showed that, managerial accounting came as a result of the cut throat competition being faced by managers of companies, firms, industries and organizations of this day.
However, the system of record keeping can be traced back to the early civilization, the method of keeping record by making marks on the store, papyrus and the papyrus paper as we kwon the paper was used, in Egypt to start the art of financial record keeping was primitive in 1994,
Luck paciol introduced the double entry booking system in terms of managerial accounting records that all entries must have a debtor and a creditor so that decision can be made in an organization.
Over a years civilization and technological development to recent day modern accounting methods were introduced hence the formation of the professional accountancy bodies for example;
1. Institution of chartered accountant of Scotland formed in 1854
2. Association of certificated public accountant in use was formed 1887 as new method Nigerian accounting record keeping establish the institute of the chartered accountants which regulate nation wide.
Managerial accounting information therefore becomes an effective aid other decision markers.
According to W.M Harper (1997) management accounting was integral part of cost accounting though evolve from cost accounting gas become a subject and discipline of its own.
1.2. Statement of the Problems
A good managerial accounting decision making is judged and appraised on the decision it has made, one of the most difficult task making therefore, accountant is expected to supply all the necessary information for decision making in an organization.
- Accounting Information is sometime provided by people who lack management skill.
- Some of the information provided the management accountant are not timely and accurate.
- Inability of the managers.
1.3. Objectives of the Study
This study is aimed at achieving the following.
- To establish the relationship between decision making and corporate performance.
- To find the extent to which the use of managerial accounting information relates to corporate decision making.
1.4. Research Questions
The following questions are considered important for the study.
1. Do all the users of management accounting in organization, firms employ management accounting techniques of data analysis?
2. Can accounting record improve your organization for decision making?
3. Does lack of expenses has any effect on managerial decision making?
4. The task or recording of value of assets and liabilities has any effect in decision making of your organization?
5. Do lack of managerial accounting techniques affect performance?
1.5. Significance of the Study
This study is very important because it will assist management in the following areas.
1. Reduce the risk involved in decision making.
2. It will give more information to the researcher and student studying the management accounting.
3. To help the organization know how the strength of their organization of financial status.
1.6 Scope and Delimitation of the Study
It is obvious that this study, the use of research for collection of information is necessary, the research was carried out in critical investigation under vita form Nigeria Plc, Sapele.
1.7 Limitation of the Study
In the case study of the research faced many challenges, but fear are mentioned, which are as follows financial strength, to enable the researchers visit some of the mention and not in sit and how together some materials like text journal magazine and faced to face interactive with people.
1.8 Definition of Terms
Management: These are combination of board of directors general managers, divisional manages and supervisors who control the affair of an organization.
Management Accounting: is a process by which managers discretely combine and co – ordinate human, financial, and material resources for the purpose of achieving organizational and objectives.
Information: This are processed data or facts.
Decision Making: This entails making choice or selection of two more alternatives.
Controlling: is the process of checking whether or not proper progress is being made towards the objectives and goals.
Cut – throat: This is to complete with one another in aggressive and unfair way usually among companies.
Organization Decision: These are decision made to affect the organization that controls the subordinates towards a particular issue.