The Role Of Management Accounting As A Tool For Decision Making In An Organization project topics and materials download
This research work focus on the role of management accounting as a tool for decision making in and organization, a case study of GT Bank Minna Branch the project work is divided into different chapters with embodies different ideal and concepts of the topic. The problem face by the organization is inability to apply management accounting tool in terms of their decision making. The main purpose of carrying out this study is to ensure application of management accounting tool in decision making of and organization. This research work is hypothetically asserted that management accounting serve as a tool for decision in and organization.
The method adopted by this work includes questionnaire to elicit data from the primary source while literature on secondary data. The primary data consist of first hand information from the respondent, while the secondary data consist of textbook and internet. Simple percentage was used on the presentation and analysis of data collected, which with the aids of simple percentage chi-square assertion test of hypothesis. The finding reveals that management accounting serve as a tool for decision making in and organization. Therefore it is highly recommended that organization such employed management accounting in terms of decision making so as to achieved their stated goals, also the organization should not use any management accounting tool in Isolation for decision making.
1.1 BACKGROUND OF THE STUDY
The purpose of managerial decision making is to establish and achieve organization objectives. Almost everything manager does involves decision making. When a manager identify problems, he make sure that such identified problems is not mere a problem but an opportunity to explore. Making a decision to explore these identified problems becomes necessary. Managers ability to make decision that will solve a particular problem is influenced by his own experience and knowledge of the situation and similar other situation as well as recommendation arising from previous decisions. Therefore every manager need to develop skills in decision making and problem solving, because a manager who is indecisive or persistently make bad decision is likely to be replaced.
The main role of management accounting is to assist management in decision making. Management accounting provides the managers with information regarding to economic differences and cost components as it relate to several alternative. The techniques may be considered as the care topic of the subject management accounting. To this end, the project is designed to highlight management accounting as a tool for decision making how it can be applied and in what circumstance to ensure that the going concern of the organization is not in jeopardy. That was what motivated me as a researcher to choose this topic management accounting as a tool for decision making in an organization.
1.2 STATEMENT OF PROBLEM
The quality of advise the management accountant proffers to the management team regarding day to day activities of the organization will be determine by the quality of decision that would be taken. The decision to be taken will depend on the techniques and tool that the management team would employ and how the management team would apply the same.
In some Nigerian companies, managers find it difficult to apply appropriate management accounting tools in term of decision making as there are many other tools which would be applied. They also neglect taking decision that best achieve the organizational goal. Most companies have been crippled of even laid to rest as a result of neglecting the applications of management accounting tools in decision making.
1.3 OBJECTIVE OF THE STUDY
The following are the essential objective of this study
- To show management accounting is important to the various unit of the organization to make decision, which will best achieve organizational goals.
ii.To show who how management accounting provides information that is helpful in making decision.
iii.To highlight the management accounting tools and techniques used in decision making.
iv.To find out whether there have been a problem in the implementing some of the management accounting technique.
- To make recommendation to management where necessary to solve problems that may be encountered in implementing some of the management accounting techniques.
vi.To identify weakness internal controls and financial system.
1.4 RESEARCH QUESTIONS
The following are research question
- Could the ability to apply appropriate management accounting tools will aid decision making in organization.
- Could the organization survive without the application of management accounting as tools for decision making?
iii. Could be choice of any technique constitute to the achievement of organization objectives?
- Would management accounting as a tool for decision making serve as a better strategy towards the accomplishment of organization goals.
1.5 RESEARCH HYPOTHESIS
The two categories of the hypothesis proffered for this study are
Ho: Application of management accounting tools has no effect on the quality of decision making of an organization.
Hi: Application of management accounting tools has effect on the quality of decision of an organization.
Ho: Management accounting does not serve as a tool for decision making in an organization.
Hi: Management accounting serves as a tool for decision making in an organization
Ho: Management accounting as a tool for decision making does not assist in achieving the goal of an organization.
Hi: Management accounting as a tool for decision making will assist in achieving the goal of an organization.
1.6 SIGNIFICANCE OF THE STUDY
It also would add to the body of knowledge as many organizations would perhaps be faced with crucial decision, which ought to be made relating to one thing or other especially in investment decision making.
This study would serves as a handbook, which managers can use to discover the need for management accounting as a tool in times of decision making. It would vest manager and owners of business with insight on how management accounting could be used in various types of decision to be made.
It would also assist in carrying out decision properly and assist in the implementation in the best interest of the business, especially for those who are in one business or the other.
Also, it would enlighten/ education the reader now that you do not make a particular king of decision without applying the appropriate management accounting tools.
1.7 SCOPE OF THE STUDY
The research work was carried out with the framework as to highlight the significance and the need for the role of management accounting as a tool for decision making in an organization performance which will eventually cover all management of GT Bank this research study the impact of management accounting as a tool for decision making in an organization were discussed within in confines of the strategies that are usually adopted by GT Bank with respect to the of management accounting.
1.8 LIMITATION AND DELIMITATIONS OF THE STUDY
In carrying out this research, the researcher faces some unavoidable constraints which include:
- Financial constrictions:This research has been constrained by lack of fund in the sense that many of the data that should have been collected and included in this research work could not be realized due to financial limitation.
ii.Times Constraints: This is one of the limitation which arise as a result of limited time at my disposal in carrying, out this study, which time the researcher in obtaining adequate information needed for this study.
iii.Ignorance of the Respondent: This is one of the major constraint that inhibit the researcher during the course of this study i.e the ignorance of the respondents about the study in supplying the relevant information.
iv.Needed For This Study: However despite all these problems and constraint, the researcher is still able to collect the information that is necessary and accurate for data presentation which is able to enhance knowledge.
1.9 DELIMITATION OF THE STUDY
- For the purpose of this research work I want to retreat my project topic within GT Bank Minna Branch in which all relevant information needed for this research work will be obtained.
1.10 DEFINITION OF TERMS
Definition are provided for the following terms as used in the study
- Budget: Plant expressed in monetary terms
- Ratio: This is a relationship of one variable to another variable.
- Control: This is the process by which manager ensure that resources are obtained and effectively used in the accomplishment of an organization’s objective
- Planning: The establishment of objectives and the formulation, evaluation and selection of the policies, strategies, tactics and action required to achieve these objective. It comprises of long term and strategic planning, the later usually refers to a period of one year (CIMA).
- Profitability: This is the excess of income over expenditure
- Long Term Assets: Those asset which affect a firm operation beyond a year.
- Sunk Cost: Cost which have already been incurred, which cannot be changed by decision that will be made in the future