THE IMPORTANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS

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THE IMPORTANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS

ABSTRACT

Information is a life-wire of every business organization. However, it is of various diversities, but accounting information was selected for this study on the grounds that some business organizations do not base their decision on the available accounting information, and therefore lack a controlling power on their incomes and expenditures. It was on this ground that the topic of this study “The Importance of Accounting Information in Management Decision Making Process” was derived and Akwa Ibom Water Company Limited was selected as a study area because of its current need to cover a wider area in Akwa Ibom State. The objectives of the study were to find out the roles of record keeping in decision making. To find out government roles towards the organization’s accounting information. Random sampling technique was used in questionnaire administration. Findings revealed that Akwa Ibom Water Company keeps and maintain accounting information which is the bedrock to which decision are based. The result was analyzed using sample percentage. Conclusion was drawn based on findings of the study. The company had identified the advantages of accounting records to include: performing its reporting function to government, controlling business activities and decision making, recommendations were suggested to include: Generally Accepted Accounting Principles (GAAP). Also, adequate internal control measures of accounting information should be adopted too. Independent reviews by Auditors are also necessary. Seminars, workshops for business owners should be organized to improve their accounting styles for effective decision making.

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