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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Management of business organizations requires accurate, reliable, relevant and timely information for the purpose of planning and control. To achieve this aim, management, over the years has set up accounting system to collect record, classify, interpret and communicate such information for the overall benefit of the organization. Management accounting according to Lercey (1992) is all integral part of management concerned with identifying, presenting and interpreting information used for.
a. Formulating strategy
b. Planning and controlling activities
c. Decision making
d. Optimizing the use of resources
e. Disclosure of shareholders and other external to the entity
f. Disclosure to employee and safeguarding assets’’
Financial accounting is that aspect of accounting which covers the classification and recording to actual transaction of an entity in monetary terms in accounting standards concepts, principles, accounting standard and legal requirement and present as accurate as possible of the facts of those transactions over a period of time and at the end of that time. an integrated system which achieves the above purpose can therefore be referred to as ‘’ an accounting information system’’ thus, it is useful to look at accounting information system as encompassing the processes and procedures by which an organizations financial information is collected, record handled, stored, reported and ultimately disposed of this usually involves participation in management to ensure that there is effective.
1. Formation of plans to meet objectives (strategic planning)
2. Formation of short term operation plans (budgeting profit planning)
3. Acquisition and use of finances (financial accounting and cost accounting)
4. Communication of financial and operating information
5. Corrective action to bring plans and result into line (financial control)
6. Reviewing and reporting systems and operation (internal audit and management audit) different ground of persons are usually interested in accounting information is concerned with the role of accounting information in the decision making processes of management and the preparation of the internal reports the corporate report(1975), identifies the following uses of accounting information.
1. Equity investors group(including existing and potential creditors)
2. The loan creditors group (including existing and potential creditors)
3. The employee group
4. The analyst-adviser group
5. The business contract group (customer, trade creditors and supplies)
6. The Government
7. The public
The identification of different group of users by the corporate report suggests that management relies heavily on the information generated by management accounting for daily decision. The focus on this paper is therefore on the effect of an integrated accounting information system to management in general and champion Breweries plc, in particular.
1.2. Statements of the Problem
An organization comprises a number of information system or networks. Sometime system has separate information dealing with sales, production, personnel, financial and other matter, sometimes there is integration of these subsystems. However, it is now necessary to know it the whole problems of accounting system will be solved by using accounting information system for timely and accurate report and if the information provided can be useful to management in achieving the organization goals.
1.3. Objective of the Study
1. To find out whether the staff and management of Nigerian Bottling Company Plc, Benin City be able to tell major types of accounting information.
2. To know whether the management of Nigerian Bottling Company Plc, Benin City be able to say their level of reliance on accounting information for decision making.
3. To know the problem associated with accounting information system in Nigerian Bottling Company Plc, Benin City.
4. To know whether the staff and management will be able to offer possible, solution to the problem associated to accounting information system.
1.4 Research questions
The following research questions are formulated to guide this study.
1. Does accounting information play role in decision making in any organization?
2. Does accounting information have significance relationship with any organization?
3. Does procedures involves in accounting information?
4. Does an organization constituted in the user accounting information?
1.5 Research hypothesis
To serve as a guide on the study, the following null hypothesis (Ho) was formulated:
Ho: There is no significant difference between accounting information and decision making in an organization of Nigerian Bottling Company Plc, Benin City.
Ho: There is no relationship significance of accounting information on organizational management in Nigerian Bottling Company Plc, Benin City.
1.6 Significance of the Study
The benefit of an effective accounting information help management of manufacturing companies in decision making. Therefore, the findings of this study are expected to be of immense importance to the management of the Nigerian Bottling Company Plc, Benin City in particular and the Nigerian economy in general.
a. The study will offer useful information to accountant involved in designing accounting information system for any manufacturing companies.
b. It will serve to the advancement material and will constitute to the advancement of knowledge in the field of accounting information system.
1.7 Limitations of the Study
This research covers the significance of accounting information on organizational management in Nigerian Bottling Company Plc, Benin City, Edo State. This is aimed at critically analyzing the system to ascertain its effectiveness and efficiency. It is been limited to Nigerian Bottling Company Plc, Benin City, Edo State. It is further limited by time and finance, the harsh economic conditions has affected facet of our life. As students mostly depend on others for their welfare and support for academic pursuit, this limits the extend of the study, also the one year period allocated for this research is grossly inadequate for the work required of a student.
1.8 Definition of Terms
1. Accounting:
You either get what you want or your money back. T&C Apply
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