THE ROLE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING (A CASE STUDY OF MAX ALUMINUM COMPANY LIMITED PLC IN OWERRI, IMO STATE)

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ABSTRACT
Information as a life wire of any organization is very vital decision making manufacturing companies take decision concerning Production, pricing and marketing. Consequently, it is vital that relevant, timely, reliable, consistent and adequate information needed is available for managerial decision in order to run the organization effectively and satisfy interested parties.
This study is aimed at finding out the extent to which manufacturers use accounting information and whether there is any positive relationship between the effective use of accounting information and the quality of decision in manufacturing companies.
This study was carried out on one of the manufacturing companies called “max aluminum PLC, OWERRI, IMO STATE.”
Data collected through the use of personal interview and questionnaires were sourced primary from field work. The sample size of this study was 38 using the best of judgment method. However, 35 questionnaires were returned.
Data collected were compiled and analyzed in tables using simple percentage method, while chi – square was used for calculation and test of hypothesis. From the study, it was observed that manufacturing companies make use of accounting information in decision making which has positive relationship with the quality of decision of the firms. Finally, a proper keeping of accounting records should be encouraged from which accounting information will be drawn for decision making process.

1.1 BACKGROUND OF THE STUDY
Organization is included as part of the whole economy. It is a network through which people (managers) in authority order all action and obtains information they need to meet responsibility. Organization is broadly divided into two (2) parts.
(I) Non-profit oriented organization and
(II) Profit oriented organization
Information is the life wire of organization, the success of any organization whether profit or non-profit oriented depends particularly on how the information needs of the different levels of management are met. Information according to Anthony and Reece (1975 P290) is a fact, datum, observation, perception or any other thing that adds to knowledge”. Also Cox and Enis (1972) designed information as “any data which the manager believes will be successful to him in making a particular decision” information can either be quantitative or non-quantitative and accounting information happens to be one of the quantitative information. It is distinguished from other types of information because it is usually expressed in monetary terms. However, non-monetary information is also included in accounting reports in order to enhance the understanding of the managers. This study is about the role of accounting information in managerial decision making. It seeks to enquire into how monetary and financial information arranged in a professional accounting manner is used in decision – making.

USERS OF ACCOUNTING INFORMATION
Accounting information has so many users; these users have different decisions to make and their information often differ.
The users of accounting information have been identified to include: B.N Okezie (2008).
(a) Individuals financial institutions
Who may require accounting information determine the liquidity, profitability and viability of the enterprises.
(b) Managers in an enterprise who may need accounting information to measure performance, plan and control operations.
(c) Employees and customers of an enterprise who may need accounting information to assess the ability of the enterprise to produce goods or render services on a continous basis.
(d) Government and regulatory bodies need accounting information in order to be able to impose and collect taxes, to regulate certain business activities and to plan, execute, and evaluate performance, project and policies.
(e) Quasi – government establishments and agencies need accounting information in order to meet their statutory obligation (SAS P.4)
It can be seen from the above that accounting carters for a variety of interests and need, hence it must respond to the environment and accommodate the any of the environmental factors. These users constitute importantly to the stakeholders in any enterprise.

ACCOUNTING INFORMATION AND MANAGEMENT
• Decision making is the prime job of managers.
• It is convenient to classify management decision into two categories:
 Planning decision
 Control decision
These decisions could be routine or non-routine in nature

PLANNING DECISION
These decisions could be made at all levels of management. The objectives of finding a course of action which is feasible and also accomplished organizational objectives. A plan cannot be said to exist unless decision commitment of resources has been made since a major set of organization resource accounting information is useful in determining the feasibility of plan, cash budget, capital budget and project balance sheet are example of contributions which accounting can make to resources planning.
Planning involves an important concept of management, method of management by objective (MOB) which simple means those managers and their sub-ordinates will set objectives and aim at achieving these objectives.

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