The project concentrate mostly on the relevance of
accounting information to management decision making process of which Okin
Biscuit Nigeria limited of is the case study.
Financial accounting deals with the periodic measurement
and reporting of the profit or loss and asset and liabilities of organization
and Balance sheet of the year ended. The balance sheet is a statement of
financial position and it report is on
the status of the assets as individual items as a class .
Data’s sources through the case study has revealed
on design by the researcher to fill by the staff of the organization in
accounting department and
information that have already been
recorded in the subject data in various
document including book annual report of the organization.
Finally, with my recommendations, we hope stepping
stone for further study.
TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SCOPE AND LIMITATION OF THE
1.5 SIGNIFICANCE OF THE STUDY
1.6 RESEARCH METHODOLOGY
1.7 PLAN OF THE STUDY
1.8 DEFINITION OF TERMS
BACKGROUND OF ACCOUNTING
2.2 ACCOUNTING SCOPE AND
2.3 INTER-RELATED ROLES OF
BRANCHES OF ACCOUNTING
2.4 ACCOUNTING INFORMATION
2.5 USER’S OF ACCOUNTING
2.6 LIMITATION OF ACCOUNTING
2.7 ACCOUNTING POLICIES
2.8 DECISION MAKING
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 DATA ANALYSIS
4.1 INSTRUMENT OF ANALYSIS
4.2 RETURN OF QUESTIONNAIRE
4.3 TEST OF HYPOTHESIS
BACKGROUND OF ACCOUNTING
The accounting can be traced back through history,
the history accounting dates back to ancient Mesopotamian and Egyptian time,
when the need for account brought about development of writing.
Accounting records dated several years back can be
found indifferent part of the world, showing the important of accounting
information at all level of development.
The discovery of zerion parayric in 1915 led to
the discovery of information about the construction projects, agricultural
activities and business operation of the private estate if Apolanmus.
Zerion used a system with provision for
responsibilities accounting, a written record of all transaction, a personal
account for wages paid to employees, inventory and record of asset acquisition
and disposal. There were also evidence
However, effort to improve accounting only
developed around 1930, although accounting 0practices has been in existence for
long before. The turn of the thirteenth
century brought about the emergence of DOUBLE ENTRY BOOK KEEPING which
constitutes the major turning point in the development of accounting. Its development provided some notable
advantage over earlier method of keeping records.
orderly and comprehensive means of keeping record and
check on the accuracy and completeness of recording transaction.
however, observed that these sorts of the owner of business and its provide no
basis for the measurement of profit and valuation of asset.
emphasis was on the recording of financial transaction in manner most suitable
to the owner of the business.
However; the replacement of small companies by
large industries and factories brought about the industrial revolution, led to
a more modified system of accounting.
This because financial for project how require more finance from the
combined investment of a large number of individual against the previous
financing by single individuals.
Accounting has developed over long period of time
in response to financial information need for decision making in business.
Decision makers operate in a complex economic environment that constantly
changing. The information need of
decision maker change with the environment and accounting must adapt to satisfying accounting must been as vital
and dynamic as a society that it serves and to function well it must adapt to
the requirement of organization and to change in modern technology matulich
OF THE STUDY
Accounting is becoming indispensable in a modern
society. Accounting provide information, which is vital to the economic
decision that have to be made by the individual, the company and government,
large companies requires the services of accounting to understand what goes on
in fan – flung branches, to evaluate the effectiveness of company policies on
operation an the impact of government fiscal and instrument. This becomes over more time with massive
growth of individual, organization. Just
imagine the difficulties of knowing anything significance about the operation
and performance of the UAC, Lever Brother, mobile, Pz Industries, Power Holding
Company Nigeria or Nigeria Railway Corporation without accounting information.
Decision – making is essentially the process of
adopting a particular course of action in preference to alternative
The responsibilities of making strategic decision
relating to the smooth operation if whole organization rest with the management
responsibilities for getting things done and can be found in government
institution, business, professional bodies, non – profitable organization. The management is responsible for getting
thing done and can be found in public and government institution professional
Management must be able to evaluate the accounting
data, in order to decide on what courses of action to take. The financial information or data so used are
generated from the financial activities of the organization.
One many be puzzled as to whom or what
“management”. This has been defined from
three (3) perspective
As a profession
As a position
As a process
The definition of management as it is seen as a
position of what is considered in this research work. As a position, authority and responsibility
within the organization ensuring the smooth running of day – to – day
activities of the organization and generally act as OVERSEERS.
Basically, within a organization, management sees
to the establishment of a proper and well organize and will coordinated
accounting system to provide and
communicate information when properly interpreted, will allow for good
judgment ad decision.
It should be noted that at this point that
accounting information is not only a great importance to the management out of
some other people who make up the external and internal users. These are:-
shareholder or equity provider
owners of loan capital
revenue authorities competitors and
But for the purpose of this research work, we
shall only consider accounting information and its relevance in management
decision – making process.
Accounting is basically dividend into the
Financial Accounting and the Management Accounting aspect.
Financial accounting, deal with periodic
management and reporting if the profit or loss, asset and liabilities of the
Management accounting, on the other hand, is
concerned with providing information for decision about level of output the most
optional choice of alternative their cost, revenue and impact and the expected
changes in the economy.
Accounting managerial of financial provides
information and communicates this to one of another. Both branches of accounting house much
common. Information is in each case, generated with a view to facilitating
decision – making.
The user to which this accounting is put or the
determination of the role it plays in decision making will be seen in the
context of, this research works.
It is a know fact that at every stage of our
lives, decision have to e made. These
decision may sometimes be made in conditions where all information not
available. In either case, these
decision may have every significant effect may be made to ensure that the best
possible decision are made under any circumstance.
The adoption of any case of action will always
entail an expenditure of time and resource, which would have been applied to
In decision making some classical Techniques are
applied which could be wrong and thus, create problem are a result of improver
decision taken they includes.
Decision to do what one feels is right which mighty one be the best in all
Decision on particular course of action based on ones past or past event that
is a case of we have always done it like this.
Decision making are made by the superior, shareholder and boss on the motion
that he known everything and even because of important position he holds, this
is not the best.
Shorting of responsibilities of the decision making that is trying to play
Although these methods may sometimes work but, it
should be noted that supplying all the information required for then making
decision are not the exclusive tensible to assist in making decision which will
not entail a waste of resource of any sort.
Frankly, the ability to make proper decision is
usually hindered by the Nigeria economy as he withies by the various economic
technological development and the turn bulient political environment.
Management of an organization must be able to
identify opportunities to be exported ad the threats and problem to be avoid.
OF THE STUDY
The purpose of this research work are:-
the role of accounting information play in the management decision making
process at organization with reference to Okin Biscuit Nigeria Limited, Offa
determine if the accounting information generated by account department assist
in meeting the objective of the organization.
the reason for employing accounting Information in the decision making process.
the reason for employing accounting in management decision making process.
the reason for employing accounting in management decision making process.
critically the nature of accounting information.
will help to develop the accounting information standard of system in such a
way that it will more towards intended goals.
determine the problem that is faced in the management by making important
AND LIMITATION OF THE STUDY
The scope of study of this research project deals
specifically with the relevance of Accounting information in management
decision making in Okin Biscuit Nigeria Limited Offa.
The study was limited to the aforementioned are
area study of the role of accounting information in the decision making process
of Okin Biscuit Nigeria Limited Offa.
Due to the financial problem and the time to carry out the research work
is limited and also there is no enough materials to be used in the research
OF THE STUDY
Decision making is one of the key functions of
management of any organization. It is a consensus among management writers that
decision making necessary for the attainment organization effectiveness.
The information that accounting provide is usually
needed by the enterprises itself. It
could also be require. However by the
government tax authority and agencies.
Some important issues concerns such as inflation, unemployment, wages
increase and output. And output
distribution is effected uncritical wages by business and public
enterprises. Thus by having information
such as that provided by Accounting and private and public organization the
causes and courses of economy problem are more easily determined. Hopefully, better solution result. Finally it will not therefore be out of
people to suggest that achievement of corporate goal and objective of any
organization is direct function of the efficiency of the management based on
effective of decision made by him.
Method to used in carrying out this research are:-
of questionnaire which will be distributed to the staff working in the
will also be conducted.
study of sales record and other books prepared by sales department together
with the accounting records and financial report from these sales records to
test and know how the financial report to prepared and assist management in
making decision are reward the sales department of the company.
OF THE STUDY
The project concentrates mostly on the relevance
of accounting information to management decision making process of which Okin
Biscuit Nigeria Limited of is the case study.
The topic is separated into five chapters which
will take one after the other. Chapter
one is the introduction which consist of the Historical Background of the
study, statement of the study, methodology of the study, purpose of the study. Plan of the study and definition of terms.
Chapter two is Literature Review which consist of
Briefly History of Literature review and accounting and society, interrelated
role of the branches of accounting information, accounting policies decision
Chapter three is research methodology which
comprises of Historical background, statement of hypothesis, population,
administration of the data collection instrument, validity sampling design and
limitation of methodology.
Chapter four is data presentation, analysis and
interpretation which consist data analysis instrument of analysis, return of
questionnaire and test of hypothesis.
Chapter five which is the last chapter consisted
of recommendation, summary, conclusion and Bibliography appendix.
Relation between worker and employee within an
It is formal meeting between an applicant and
staff of organization with Accounting officer. It is conducted on successful applicants
before hiring them.
As a process by which scare resource are
combined to achieved given ends.
Is process of recording classifying, selecting
measuring. Interpreting and
communicating financial data of an organization to enable user making
assessment and decision.
A managers job consists of planning, organizing,
directing and controlling the resource of the organization.
Is the legitimate power of a supervisor to
direct subordinates to take action within the scope of the supervisor’s
Wages and salaries administration:-
These are the remuneration policies aimed at
compensating the employee for the job done.
Precisely, it is to provide incentive for better worker’s to attract
and retain enough staff of the required caliber to meet the organization
The process of having the right kind of people
at the right time at the right place doing the right thing in organization.
Process of making the choice of right man with
right skill and qualification for the right position at the right place in
Process of making is essentially of adopting a
particular course of action in preference to alternative possibilities.
Process of recording of financial information
and communicates this is to one of another.