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This research work was carried out on the effect of Foreign Exchange Deregulation on manufacturing industries, a case study of Nigerian Eagle Flour Mills, Ibadan Oyo State. The aim of the study is to examine various policies directed towards mobilisation, conservation, allocation and utilisation of foreign exchange resources, to identify various methods adopted in the operation of foreign exchange transaction in Nigeria and to recommend plans on how we can achieve stability of the exchange rate to improve productivity of manufacturing industries. The research study covered Nigerian Eagle Flour Mills Ibadan. Primary and secondary sources of data were used for the study. Questionnaires were administered to 50 respondents, but 45 were collected and analysed using tables and percentage scoring technique. Text books, journals, Newspapers and internet were consulted as secondary sources of data. Result of the findings showed that to a greater extent low productivity of the company had been attributed to the deregulation of foreign exchange and that maintaining a favourable external reserve position and preserving international value of domestic currency, so a stable exchange rate will improve the productivity of the manufacturing industries. In conclusion, foreign exchange deregulation has played a significant role on Nigerian manufacturing industries.
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Company budgeting involves allocation of source financial resources to long term investment. Thus, because of the involved capital there is need for adequate manager. Through the aid of theories and provided with capital budgeting techniques that aid capital budgeting appraisal. This study investigate, the subject of capital budgeting in relation to public and private companies. The companies use such a management tool companies uses in which the application of such in the private and public sector differ.
Hence the research work focuses on organization selected from the public and private sector and the selection was based on a random selection of companies that broadly represented both companies. Findings of the study revealed that capital budgeting as investment appraisal techniques was employed more by public companies. Also business and finance theories such as return, profit and loss analysis and accounting rate of return are employed in the business studied.
1.0 An overview of the study
1.1 Statement of the study
1.2 Objective of the study
1.3 Scope and limitation of the study
1.4 Significant of the study
2.0 Definition of capital budgeting
2.1 Net present value
2.2 Internal rate of return
2.3 Profitability index
2.4 Payback period
2.5 Accounting rate return
2.6 Investment decision criteria
2.7 NPV version IRR
2.8 Public company
2.9 Private company
3.0 Research methodology
3.1 Source of data
3.2 Population of study
3.3 Sample size
3.4 Research investment
3.5 Data analysis technique
3.6 Questionnaire administration
3.7 Limitation of the study
Analysis interpretation and presentation of data
5.0 Summary of findings
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1.1 BACKGROUND OF THE STUDY
Towards the end of 1800s to the early 1990s the mission of business firms was exclusively economic. During this period, the cardinal purpose of business owners is to make as much profit as possible. To underscore the above assertion, Milton Friedman 1972:88 had contended that the only responsibility of the business is to make as much profit as it can for the owners. Today, partly due to the interdependencies of many groups in our society, the values, goals and attitudes of the society changed significantly. This accounts for the complexity in the society in the area of social, economic as well as environmental problems which have been experienced. This situation is in consonance with the view of Ackerman 1973:89, when he opined that the people increased awareness has brought some expectation and demand to bear on companies to be socially responsible to the society in which they operate. Thus we often talk about the social responsibility and social responsiveness of all organizations although the focus of this study shall be on corporate organizations. There is a question as to what the social responsibility of business really means
1.2 STATEMENT OF THE PROBLEMS
Oil spillage in some of the oil producing state is alarming and some pollution caused by industries in our country is on the high rate. The problems of the communities where the oil companies operate bring these problems constructively to the attention of the companies with which they have developed regular form for meetings.
1.3 OBJECTIVES OF THE STUDY
The corporate organizations naturally have its own mix and different emphasis. The overall objectives of every organisation are survival growth, profit, economic contribution and social obligation. It is known fact that firms in Nigeria usually lay more emphasis on profit maximization. The objective of this research work includes the following:
i. To examine the general attitude of ANAMMCO towards social responsibility.
ii. To examine the consequences of the company ignoring its social responsibilities.
iii. To evaluate the problems which hinder the performance of social responsibility practice by ANAMMCO.
iv. To recommend possible solutions for the identified problems.
1.4 RESEARCH QUESTIONS
To ensure an indepth research work with a view to providing best solutions to problems identified, the study will make us of the following four 4 research questions:
i. Could business organisation carryout a successful social responsibility practice
ii. Should social responsibility be legalized
iii. In what form should social responsibility be performed
iv. Where should funds for carrying out these social responsibility programmes come from
1.5 RESEARCH HYPOTHESES
Based on the four research questions already mentioned, the following hypotheses were formulated:
Ho: Business organizations can not carryout a successful social responsibility practice.
Hi: Business organizations can significantly carry out a successful social responsibility practice.
1.6 SIGNIFICANCE OF THE STUDY
The importance of the study cannot be overemphasized given the interdependencies of many groups in our society. The study is therefore important because, it will not only examine the attitude of business organisation towards the issue of social responsibility but will go a long way to help these organisation on policy making decision in order to eliminate the negative effects and consequences of these attitudes in the discharge of social responsibility practices.
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THE CHALLENGES OF INTERNAL AUDIT FUNCTION IN THE NIGERIAN PUBLIC SECTOR. (A study of Kaduna state ministry of finance.)
This research work deals with the challenges of internal audit function in the Nigerian public sector with reference to Kaduna state ministry of finance. Internal auditing is a process generally adopted towards ensuring and safeguarding of resources and promoting operational efficiency in organization. The objective of this study has been to evaluate the internal control system in the Nigerian public sectors, to ascertain the non implementation of routine audit report and the lack of proper segregation and assignment of duties. In recent times, a combination of forces has led to a quiet revolution in the profession. Government moving towards democracy must demonstrate accountability in the use of public money and efficiency in the delivery of service. In many cases internal control system are weak, staffs are poorly paid making them unmotivated, coupled with nonimplementation of routine audit report by appropriate authorities. The Responses from staffs were analyzed using relevant statistical tools from which three hypothesis were formulated and tested using Ztest statistics, while questionnaire were analyzed in tabular form using simple percentage. It was discovered that the internal audit is facing a lot of challenges which includes inadequate staffing, lack of independence, lack of facilities to carry out audit function and also poor funding. As a result of some of these challenges the effectiveness of the internal audit in the Nigerian public sectors, has been hindered as well as the organizational change it can bring to its environment. I recommend that for internal audit to be effective, it must be a completely independent group, adequately funded and equipped with qualified internal auditors as well as sufficient opportunities for internal auditors to become qualified.
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The Nigeria Stock Exchange NSE is the centre point of the Nigeria Capital Market, while the Securities and Exchange Commission SEC serves as the apex regulatory body. There are other regulatory bodies of the Nigerian Capital Market. They are the Federal Ministry of Finance, the Central Bank of Nigeria CBN and the Merchant Banks. The Nigerian Stock Exchange provides a mechanism for mobilising private and public savings and makes such funds available for productive purposes. There is what appears to be the general opinion that, a vibrant Capital Market contributes immensely to the economic growth and development of any nation. Nigerian Stock Exchange market has a role to play through a periodic performance evaluation of quoted companies for adequate and efficient generation of income. When income increases, there will be enough to plough back into the business by way of retained profit for business expansion; expansion will equally lead to employment of more hands, thereby reducing the unemployment rate. Also high profit will lead to increased tax liability for infrastructural development. The study attempts to analyse and measure the rate of the economic development of the country through quoted companys level of capitalisation, value indices of common stocks, growth in the number of listed securities and Gross Domestic Product. The study will also analyse the operation of the Nigerian Stock Exchange, its challenges and prospects, the functions and dealers in the Nigeria Stock Exchange market. The study suggests that, the system should be liberalised so that expected result of capital reform would not be distorted by inefficiencies in the financial sector.
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THE EFFECT OF HUMAN RESOURCES MANAGEMENT ON THE OVERALL PERFORMANCE OF A FIRM (A Case Study of Zenith Bank International, Victoria Island, Lagos)
This project work is carried out in an attempt to complete the DEGREE AND DIPLOMA Programmes requirement. The case study being Zenith Bank International Limited. The project work is aimed at seeing the superior impact of Human Resources Management on the overall performance of establishments. However, the project is patterned into five 5 distinct chapters. The first chapter dealt with the study. It also reveal the statements of problems objectives of the study, scope and limitation ol the study and mention is equally made of definitions of terms in Human Resources Management. Similarly, chapter two dealt extensively with the literature review where in definition of Human Resources Management, were given by many authorities. Mention is equally made to the gradual development of Human Resources performance and explanation is given to the various function of Human Resources to include, appraisal Transfer and the series of motivational tools employed in Human Resources Management i.e. fringe benefits, promotion and Housing e.t.c. In addition, chapter three dealt with the research methodology and this also adopted the technique of personal interview. The population study was centered on the personnel department. The Administrative Department and the junior staff group informal group. A brief explanation on sampling size and instrumentation was made. Meanwhile, chapter four dealt with data collection and analysis with the aid analysis was a successful one, having done that much, observation is made to give ones sentimental conclusion on the data collected. Finally, the last chapter however gave the final notion of Human Resources Management in an organisation interviews were drawn from the previous chapters to result in conclusion and recommendation. The superiority of the resources exhibits itself having observed the negative and an expected situation of my case study.
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Budgetary control can be used as a means of control where by actual state of Affairs can be compared with that planned for by the management, so that appropriate action may be taken to correct adverse situation that may occur before it is too late. One of the main problems associated with the establishment of Budget is the problem of inflexibility while the major advantage is the welding together the element of the organisation to achieve corporate objectives. This project will examine various ways to make Budgetary control an effective one in various organisations.
A budget according to the definition given by the institute of cost and Management Accountants ICMA means a financial and/or quantitative statement prepared and approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective.
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Right from time, food, clothing and shelter have been the three most basic requirement of man of all these three requirements food and clothing are the two, which influence mans life more than the house in which he seeks shelter, security comfort and dignity. It is infact where man starts and ends his dairy activities.
Housing is mainly the most import factors which determine the nature and form of urban settlements and the quality of human existence is directly related to it:
Housing:Is defined by Oyeyipo 1980 to mean, the provision of any form of structure, erection of building which is man made for the purpose of accommodating a person or person by talking housing to mean only shelter the definition appears defective as it ignores all those infrastructure facilities which housing brings along with it.
The world health organization committee on housing defines it as the physical structure than uses for shelter including equipment and devices needed for physical and social well being of the occupant 2 such equipment and devices include utilities and services like electricity, water supply, good access roads sewage and refuse damp facilities.
The fact remains that Port Harcourt metropolis has been the administrative centre for the then eastern region,
Port Harcourt metropolis is occupied mainly by government workers with low income. This position makes it difficult for them to afford the high cost of developing housing estates for their use. They therefore resort to borrowing from both formal and informal sources in other to find money for housing development and also Port Harcourt metropolis is made up of river line area, swamp ground.
The question then Is the existing financial institutions in Port Harcourt metropolis enough to satisfy the demand for residential housing loans of these low income earner residing in Port Harcourt metropolis If not how can be situation be improved.
This research work therefore intends to the existing financial structure of Port Harcourt metropolis with a view to finding out how efficient it has been performing and proposing how the system could be improved.
BACK GROUND OF STUDY
Housing estates is a fundamental and essential features in the urban environment. Adequate provision of housing estates have a great deal of positive impact on both the economic and social life of the urban citizens and its inadequacy has the reverse effect.
The shortage of housing estate is one of the major problems facing the urban centres especially in the developing countries. Thus could be attributed estate development involves large amount of money, which is usually not within the capability of most urban dwellers particularly the medium and low income groups, the rate of housing estate construction often tend to be small and generally depend on financial resources.
This situation of financial scarcity is made worse by the rigid attitude of financial institution towards lending for housing development. Their system of granting loan make it very difficult for the medium and low income groups to benefit from the available facility. The bulk of the mortgage loans go the upper class.
This research work intend to look into the existing finance structure in river state urban, to find out if it is adequate to satisfy the housing needs of inhabitants of Port Harcourt.
1.3OBJECTIVES OF STUDY
The objective of this study is to examine the housing estate finance situation of Port Harcourt metropolis with a view to
Assessing the existing financial institution
Ways of improving it
Providing decision makers
With a decision making tool
1.4SIGNIFICANCE OF STUDY
A study on housing estate finance is very financial institution of housing estate finance is valuable and could be utilized to achieve certain academic objectives. It can enlighten both the government, students and researchers on the importance of housing estate finance.
The general result obtained from this study is educative, informative and broader the awareness of the public on current sources of housing estate finance in the estate.
Estate surveyors and valuers could apply the result of this research work in their future housing estate finance planning and their advisory role to the public.
The study would be utilized in making new housing estate policies and ensuring their implementation. This is because any housing policy that does not place priority on source of finance would ever remain incomplete. It will also serve as a basic for the allocation of finance for housing estate programmers.
1.5PELIMITATIONS OF THE STUDY
Securing data for this study was not an easy task.
This is due to the nature of the study. Some respondent collected questionnaires and did not return it back.
Some were of the opinion that the research would not offer, then any increase in the or salary, while some argued that the information might be used for other purpose. Other than academic as claimed by the researcher.
Other problems encounter by the researcher during the course of study includes, not having asset into the research area, the officers to help the researcher for the there is were no to be found.
1.6LIMITATIONS OF THE STUDY
The major constraints encountered during the course of this project is lack of finance which made me to restrict the study of certain areas.
Again time factor is a limitation to this study because I shared my time between my project and other academic works.
Finally the constraint of scarcity of relevant text books on the topic. I will like to use this opportunity to urge the professional in this area to write more books in order to help the younger generation.
1.7DEFINITION OF TERMS
Certain terms are used in this work which their definitions are relevant for easy understanding for the study.
Housing estate development is a group of houses in an area of land, built only for dwelling purpose and not for commercial or industrial purpose it is.
It is generally constructed for residence. It has the attributes of living shelter, security, comfort privacy investment and personal identity.
Financial institution:Is defined as informational or formal act of providing money n this sense financial planning, the estimating of cash receipt and disbursement.
Finance may be defined as the management function of managing the flow of funds in an organization. It is also seen as the provision of money or means of payment at the time it is wanted, Aniagolu 1997.
Finance as defined by western dictionary is the science of managing money here it concerns the control of money by individuals.
The term development is mostly applied in relation of land valuers and estate surveyors sees it as a way of embarking on constructional work that will amount or give rise to utilization of land with its improvement or reimprovement of an already utilized one.
According to Todaro 19 Development implies the multidimensional process involving charges in structures, attitude and institutions as well as the accelerations of economic growth, the reduction of inequality and eradication if absolute property.
Development on the other hand has many definition. The British town and country planning. Act of 1947 defined development Inspection 12 subsection 2 as the carrying out of building engineering mining or other operation in, or, under land or the making of any building or other lands Similarly, the Nigeria land use decree of 1978 in section 50 subsection L defined development land to main land where there exist any physical improvement in the nature of roads development services, water, electricity, drainage building, structure or such improvement that may enhance the value of the land has industrial agricultural or residential purpose.
In a more general sense development may be defined in socioeconomic terms as a progress worktransformation of society or as a conscious action to effect large scale change in a designed direction utilizing the centralized or at least in a coordinate way the resources available to give political unit.
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Today, the importance of budgetary control can never be over emphasized. Thus, for survival of any business organization, management needs to embark on budget to effect proper planning and control. In this vein, budgeting can be seen as a process of planning and control. Proper budgeting can never affect efficient plans of organization without control. Control as it were is an important tool which must be priced to keep in check with the plans of the organization and for correction of any deviation from the stipulated plans of the organization in question. Hence, a budgetary control comprises of both plan of operation and means of controlling operation with the scope of plan. In pursuant to this, data were collected by personal interview, questionnaires and through researchers observation. Secondary data were also collected from journals and related works. In chapter four, it reviews the response of people, and it was found out through questionnaire that the factor that affects the companys profitability most is the general economic condition in the country as the people stated and cash budget is the best type of budget. This work also recommends in chapter five that business executives must make use of budgetary control to avoid failure in business.
When a person decides to make a motor trip, he usually first secure an up to date road map in order that he may study the various high ways shown on the way, he then selects the route that appears to be the most satisfactory one to reach his desired destination. Before starting his journey he will probably call his local highway department or automobile club to make certain assumptions that the route is reasonably free of detour. Having assured himself that the route is the most satisfactory one, in the light of current highway condition, he will take his map and endeavor to follow the selected route as closely as circumstances permit.
The business which employs system of budgetary control may be likened to the motorist who carefully planned his trip consulted his map and kept in touch with all the highway conditions on route. The budget considered the highway map which shows the road to take to reach his destination. It is rather generally agreed that the successful completion of business activities requires careful plans to be made which should be viewed and carried out.
1.1BACKGROUND OF THE STUDY
The process of preparing and using budget to achieve management objectives is called budgeting. Budgeting is an essential element which is vital to management accounting technique which can benefit all aspect of business if it is understood and properly used. The growing complexity of the business environment and the ever increasing competition among firms in the modern time makes planning /budgeting an inevitable tool for business success.
Successful management is no longer just a matter of flair, skill and determination, a conscious effort is needed to harness available resources towards the achievement of enterprise objectives. Therefore budgeting is one of the tools adopted by management for effective cost planning, control and increase in productivity.
Wildarsky 1984:213 argued that because a budget served diverse purposes, it mean different things to different people, among the various possible interpretations given by him include:
It is a plan
It is a prediction
It is a link between financial resource and human behavior to accomplish policy objectives.
It is a mechanism for making choices among alternative expenditure.
RUFUS WIZON New York said without a budget a business may in order aim lessely. It may never know where it is going or where it should go. Even with a budget a business may not reach its planned objectives or destination, but the exercise of budgetary control will note the deviation from the plan and thus provide the opportunity for necessary corrective action. The making of such plans and the continuous review and execution are the essence of budgetary control.
A brief history/achievement of the company
Vita foam Nigeria PLC is a manufacturing firm that manufactures and distributes polyether, foam products, furniture and upholstery products also adhesives in Nigeria. It was incorporated in 1962 and is headquartered in Oba Akran Avenue, Industrial Estate Ikeja, Lagos, under the chairmanship of Chief Samuel Olaniyi Bolarinde. It was listed on the floor of Nigerian stock exchange in 1978. this company offers flexible polyurethane foams for beddings, mattresses, sofas, pillows, cushions and carpet underplays as well as provides special high load bearing foams and super soft cushioning foams primarily under Galaxy, vita supreme and vita super brand names.
The company is one of the major companies that have contributed to the Nigerian economy with turnover of 576 billion during the 2002 financial year, which is expected to be doubled within the few years. The contribution of the company to the economy cannot pass for a drop of iceberg. In the area of employment, the vita foam Nigeria plc has provided for employment too many that would have been left unemployed.
The company established a N40 billion research and development centers to enhance its research activities commissioned in June 17, 2000 and managed by a Nigerian Scientist.
However, in 2002, it remained the leader in their traditional business of foam manufacturing and this position is complemented by the steady development of their foam business. Recently vita foam has embarked on a reengineering exercise with corporate rebranding company and commissioning of new products. The exercise is aimed at improving productivity, profitability and ensuring greater returns to shareholders.
1.2STATEMENT OF THE PROBLEM
Most often budget and budgetary control research concentrated on its impact in the Federal Government budget and its attempt to control the use of public fund. There is no doubt that some other writeups on budget and budgetary control has concentrated greatly on profit oriented organization, the issue failed to emphasize on the issue of budgetary control which is the bedrock for which budget implementation could be more effective and plans realization efficient.
Budgets are attention directed and forward looking on financial statement. Budget tends to ensure goal congruence and elicit managerial efforts which are both wrapped up in motivation. Budgets relate to objectives and policies to managerial responsibilities, and facilitate accountability. In profit seeking organization budgetary control provide relevant information relating to what the organization wants to achieve and the measure it would adopt to translate its plans into reality. Time has come to direct our searching eyes of budgeting to budgetary control in our manufacturing companies.
1.3PURPOSE OF THE STUDY
The objective of the study is based on the statement raised in the proceeding paragraph. They are:
To ascertain that budgetary control is implemented and to consequently determine how the actual performance can be used to match the budget provided.
To determine whether budgetary control is practicable by vita foam Nigeria plc.
To determine whether the cost of instituting budgetary control is matched with its benefit.
To determine if administrative cost is incurred when trying to control actual performance.
The following questions are considered pertinent for the purpose of this study and will emphasize on the best answers and solutions to these problems.
Does the manufacturing company see the impact of budgetary control schemes as the stepping stone towards organization success
Will adequate budgetary control schemes bring a necessary impact on the profitability of a manufacturing company
Does efficient motivation on the part of the management and subordinate improve the firms performance towards achieving the budget control goal Are they effective
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ASSESSMENT OF THE EFFECTIVENESS OF ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION A STUDY OF PZ LAGOS
The study seeks to assess and evaluate the effectiveness of accounting information on management decision in organizational decision making process of PZ Lagos. To ensure that the accounting information given to the management are best used the way it should be, these information will enable them make effective and efficient decision for their organization. The population of the study which is based on a selected number of staff of PZ Lagos is two hundred 83 staff which was used.
The researcher collected her data from the primary source and secondary sources of data collection, the primary source were derived from administered questionnaire to the staff while the secondary data were obtained from oral interview, textbooks, staff magazine e.t.c.
In determination of the sample size the researcher needed to select a sample from the population. The sample size was adequate, since it was determined using YARO YAMANE formular, for determining sample size as quoted in Nwabokil 1964: 280 The hypotheses where tested to evaluate the study base and significance to which it justify. At the end of the study and analysis of the research, the study revealed that accounting information is the foundational basis of any organization decision.
Accounting is something other than a set of clever devices for beating the income tax with little or on damage to one conscience, something more than specious way of window dressing where the best possible appearance is given to somewhat undesirable stock of goods. It is a universal language of business.
Industry and commercial activities involves, capital, man, material and machines and bring into their compass transportation, finance, insurance, banking and other features of our complex economic life. One common factor could be used to focus these activities. Money in business plays a dual role. Firstly, as physical economic factor of production and secondly as an abstract economic measure of value.
The final reconciliation of all the elements of business is reflected in the account, in term of money and if the value of money changes the fact must be recognised and taken into account. It is necessary to be able to measure the economic value in any combination together with the value of the utility.
One among numerous tasks of accounting is to reduce the multitude of these transactions to its virtual figure of profit and loss. The principle applicable is financial control. The modern technique of management of any business or foremost in its thinking should be: firstly, is to earn profit and secondly, to stay to pay debts as they fall due, of course, there are other objectives of business manager such as providing more goods and services at a lower cost. It meets the two basic task of survival, operating profitability and solvency.
The following question may arise. How do business executives know whether a company is earning profit or incurring losses How do they know whether the company is solvent or insolvent, say a month from today The answer to these question is in one word ACCOUNTING.
Oyebamiji and Adebisi, 2005 defined accounting as the recording of economic events associated with an enterprises using information and data which is usually expressed in numerical and monetary terms, and the communication of the result of this in the form of financial statement to user groups.
CAMA 1990 Defined accounting as the art and science of recording business transaction in a methodical manner so as to portray: the true state of affair of business at a particular period in time and the surplus or deficiency which as occurred during a specified period.
On the other hand, managing a business when simply stated is a matter of deciding what should be done, seeing to it that the means are available and getting people employed to the business to do it. The service which the accounting information or function provides for the assistance of management, bearing in mind the efficiency of past operations and current activities as well as projection of probable future results. If an accounting system is designed to aid all the grade of managers, the will figures will not only be shown as over all totals for the business but they will also be analysed as far as practicable to demonstrate the contribution of each manager to the result. The integration of data relating to the various managers will help general management to achieve one of its fundamental tasks that of coordination. If the figures are submitted in a form which suggests a corrective action required to overcome inefficiency, management will have grounds for the exercise of another of its basic function control.
At every step in this process, management is faced with alternative, and every decision to do refrain from doing something involves a choice successful manager must make the right choice when the chips are down. In most cases, the probability that a good decision will be made depends on the amount and validity of the information that the manager has about the alternatives and their consequences information, which flow from the accounting data constitute the basis on which a wide variety of business are made.
The use of accounting information as a tool for decision making demands that figure relating to past operations be presented and primarily as guide to the future. The emphasis has changed from purely historical accounting to the submission of purposefully up to date information as a means of controlling current operation and projection of probable future as a guide to planning.
If an enterprises is to be successful, there must be a reliable advanced planning, it must be reliably planned which will be able to assimilate changes in condition which may occur and which are at present unforeseen. It in this field that modern accounting techniques produce their greatest service to industry in general and to manager in particular and it is on the basic of sound financial accounting that this service is achieved.
1.1 BACKGROUND OF THE RESEARCH
Accounting is a language which is used to communicate financial information to people: managers, shareholders, employees and potential investors or creditors. This belief gave rise to the definition of accounting as:The process of identifying and communicating economic information to permit informed judgment and decisions to users of the information AAA: 1966, as in fess and warren 1984:7.
Woelfel 1980:7 described accounting as that which provides the eyes and ears to management. He further states thus: Accounting is the language of business; it shows business what it is doing and where it is going financially and also keeps score for a business. It shows problems and opportunities that confronts the business, and also suggests possible courses of action, when action is needed.
Selto and Bruce 1987:2 defined accounting information as any data which must cause a decision maker to allocate resources among various factors or redistribute wealth among individual while Hobbs and Moore 1979:4 defined accounting information as an output of an accounting system which takes the form of financial reports which in turn are used not only to appraise and monitor the past performance of individuals and groups, but also used to design and make designs affecting the future. It has also been defined as a product of processed data in an accounting system. Thus, accounting information has its aim, the provision of relevant, timely and accurate information to aid managers in their decisions. In other words, accounting information is the end product of the activities of the accounting system.
Accounting information system encompasses the processes and procedures by which an organizations financial information is received, registered, recorded, handled, processed, stored, reported and ultimately disposed off. Accountants have been historically conditioned to visualize a transaction processing model Davis et al 1990: 4. Walgenhach et al 1988: 4 said virtually all profit seeking organizations and most nonprofit organizations maintain extensive accountingrecords. One reason is that these records are often required by law. A more basic reason is that, even very small organization, a manager is confronted with a multitude of complex variable. Not even the most brilliant manager can be sufficiently informed just by observing daily operation instead, he/she must depend on the accounting process to convert business transactions into useful statistical data that can be abstracted and summarized in accounting reports. In every sense, this process is essential to the coordinated and rational management of most organization regardless of their size. The method used by a business to keep records of its financial activities and to summarize these activities in periodic reports comprises of the accounting system Meigs, 1987: 2. Accounting information has a special meaning in that. It is data organized for special purpose that is for decision making Glaviter, 1990: 12. This view was adopted by pondy 1987: 426 where he said that accounting system must use standard criteria such as full disclosure, materiality, consistency, conservation and fairness. Accounting is closely related to general field of study including economics, finance, political science, psychology, and sociology and communication theory. By applying psychological principles, accountants learn how people process accounting information and how that information affects their decision Williams 1975: 3.
1.2STATEMENT OF RESEARCH PROBLEM
Most business organisation does not use accounting information in making their business decision. The question is: why is it that most business organisations do not make use of accounting information in their business decision making. It is because most of them do not keep accounting records Is it because they do not know the importance of accounting information Is it perennial problems associated with their liability to recruit trained and professional accounting personnel As a result, the qualities of the decisions made by business organisation are very poor.
Some of their decisions are based on the rule of the tumb. Since they do not prepare management accounting reports, they make poor quality decisions in the following areas; sales, production, finance, marketing, advertisement, undertaking new project, dropping or adding new product lines, sources of raw materials and so on. Consequently, some of the small enterprises are folding up and some are just there for the sake of being in business.
1.3 OBJECTIVES OF THE STUDY
The main focal point and idea of this research work is centered on the research title which is to assess and ascertain the effectiveness of accounting information as a tool for management decision in an organizational. More to that to highlight the importance of accounting information to the decision makers of any organizational management sectors. Other objectives of the study are;
1.To find out whether business organizations keep proper accounting records.
2.To find out whether they employ trained and qualified accountants.
3.To investigate to what extent business organizations make use of accounting information in business decision making.
4.To highlight the importance of accounting information in business decision making.
5.To make recommendation based on the findings.
1.4 SIGNIFICANCE OF THE STUDY
The significance of this study is that it shows the necessary or importance of using accounting information in business decision making. in order to achieve the objective of any business organisation, accounting information must be used in making business decision.
The study is beneficial to all business organisations, because it indicates the importance of using accounting information in business decision making. As already mentioned, some of the business organisations do not use accounting information in their business decision making, and as a result, they make wrong decisions.
The study is also beneficial to the federal and state governments as they might be compelled to take the necessary actions, in order to prevent to collapse of business organisation in Nigeria.
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The word Audit is derived from the Latin word audire which means to hear. Auditing can be define as the independent examination of the evidence from which the financial statement has been prepared with a view to enabling the independent examiner to report whether in his own opinion the balance sheet is properly drawn,