THE ROLE OF ACCOUNTING INFORMATION IN PRODUCTION DECISION – MAKING (A CASE STUDY OF PHINOMAR NIGERIA LIMITED)

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THE ROLE OF ACCOUNTING INFORMATION IN PRODUCTION DECISION – MAKING (A CASE STUDY OF PHINOMAR NIGERIA LIMITED)

ABSTRACT

Managers make decision in order to choose from alternative course of action at a dynamic rate. This is done in order to achieve the set objectives of the firms in which they manage. To make these decisions, accounting information are used as a necessary guide.

Manufacturing firms make use of accountings information which have been complied from source documents, records and statement in accordance with systems. These information gathered are used to make effective production decisions which would achieve the objectives of profit maximization cost minimization, Production efficiency, proper resources allocation etc.

This study is aimed at discovering the quantitative attributes to accountings information which makes it an effective tool in the production decision-making and if the information generated is utilized in effective manner. Although, it is evident that decisions made in manufacturing firms are determined by the accountings information to a varying extent. It is hoped that the recommendations will show the importance of accountings information and that managers who make decision will comprehend it as a vital necessity in decision – making.

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