PROPER ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION – MAKING.

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PROPER ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION MAKING

ABSTRACT

The main objective of this researcher work is to find out by investigation and analysis how the services of accountants assist in the effective financial management in private and public organization. For some time now, cases of frauds, embezzlement and inadequate of accounting system which have led many establishments to liquidation and as such became necessary that a research be undertaken to find out a permanent solution to the problem. In chapter one efforts were made to defined and evaluate the system of accounting and the need why knowledge of accounting is necessary to everybody be it a business man, a civil servant, even a house wife. Chapter two reviewed some related literatures in the field of the research work. Chapter three treated the research methodology, design, anew of study, populations of the study, sampling and sampling procedures, instrument for data collection and courses method of data analysis. In chapter four, the data collected were presented and the analysis of results given in such a way far better understanding. Finally, in Chapter five a discussion of the findings and the implications were made. By and large, it was established that proper accounting information plays a vital role towards the effective financial management in Alo-Aluminium.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The owner of a business naturally wishes to run his business as efficiently as possible. One of the coordinal purposes of keeping accounts is to enable him to do this. His accounts should tell him the exact cost of what he is selling, the exact amount of each expense which is involved and the exact revenue of the business. With such information, the owner of the business can make comparison from year to year. Comparing the profit this year with the preceding years and investigate the causes of any difference.

This is, by making comparison of the expense incurred. By studying his accounts in this manner, the business manager can now formulate a business policy. He may, for instance take a discussion whether to rise or lower prices of his products; to embark on advertisement or not. To change the method of production or to change the organizational structure. To ordinary man in the street, Account means story, explanation, or report of money received and spent. In the remote past, the actual record – making is called “Book-Keeping”. However, accounting today extends beyond book-keeping.

According is a discipline concerned with the recording, analysis, and forecasting of income and wealth of business and other terms, the flow of economics values between or within economic entities.

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