Assessment Of The Effectiveness Of Accounting Information As A Tool For Management Decision In Manufacturing Companies In Osun State, Nigeria

Abstract

and inference purpose or as a basis of forecasting and decision making. The survival of a business enterprise (both individual and corporate) depends solely on the quality of decisions (right) it implements. This decision is influenced by output from the accounting system in place, supplied to the management. An appropriate, accurate, detailed and up to date presentation of accounting information is indeed a product of an organization whose affairs is administered with good decision. Accounting information can also be classified into financial (quantitative) and non-financial (qualitative) information which is used by decision makers. Managers make use of financial and non-financial information in making decisions e.g. strategic, tactical and operational, and the application of these information demands a careful execution towards the accomplishment of the organization's goal and objective. More so, this information when properly analyzed and employed could influence financial performance of an entity, and lack of such financial and accounting information to guide the management both in short term and strategic decisions could be vital to the survival of an entity. In any entity whether merchandise or manufacturing outfit, there are varying constituents interests contribution to the smooth operations and success of such an entity and this in the opinion of Freeman [3] is known as stakeholders. The stakeholders are those that influence the firm and those that are influenced by a firm. These stakeholders can further be classified into external and internal users. Creditors, potential investors, bond/ Abstract This study examined the relationship between accounting information and management decision with emphasis on the effect of accounting information on economic order quantity decision, human resources management decision and marketing decision of selected manufacturing organizations. Data were sourced primarily with the aid of structured questionnaire from one hundred and fifty top management staff statistically selected from the selected manufacturing companies in Osun State, Nigeria. Empirical research designs and inferential analysis were carried out with the aid of statistical package for social sciences (SPSS version 20). The t-test results carried out confirmed a positive relationship between accounting information and management decisions in manufacturing organizations. Based on this, the study recommends that adequate awareness and effective utilization of various accounting tools should be incorporated into decision making processes as this will impact on human resources investment and enhance appropriate strategies for introduction of new products into markets.