Aim(s) and Objective · To determine whether the accountinginformation are applied effectively in the decisions and production of theorganization. · To distinguish the extent that whether theinformation fulfils the basic roles of cost minimization, improvement in theperiod and proper allocation of scarce resources efficiency. · To determine whether there are problemsin applying and generating other necessary information to suggest possiblesolutions and for production decision based on the problems. · To ascertain the relationship betweeneffective use of accounting information and the decisions made in theorganisation.
Rational/Background to researchAccounting Information will be useful wheninformation provided is used effectively in decision making process by users(Christiansen 1994). This research helps to identify and maximize the advantageousimpact of accounting information on decision making process in business ororganizations. It also helps in understanding how accounting information effectson making decisions. This boosts the profitability of the organization as well asensuring its continuity as a business entity.
It will help in the efficientallocation of scares resources that have alternative uses as well as increaseproductivity thereby up lifting the standard of living. In fact all interestedgroups like shareholders, employee, investors, creditors, government, etc. willbenefit immensely. It will review the improvement while handling with theaccounting information and show equally the ways through which improvementcould be accomplished in the company or organization.
Hence, the informationof the economic information system are mostly (70%) provided by the economicevidence, mentioning that most part of information in organizations includeaccounting information (Zare and Shahsavari, 2012), a statement sustained bythe fact that the accounting information systems includes components andelements of an organization that provides information’s for users by processingfinancial events (Zare et al., 2012). Accounting information is not only necessaryfor evaluation of the past and keeping the present on course; it is useful inplanning the future of the enterprise. Mbanefo (1997), “this planning we mayconventionally call budget/budgeting targets, which give meaning and directionto operations of the organization within a defined period.Otley (1980) argues that accounting information areimportant parts of fabric of organisational life & need to be evaluated intheir wider managerial, organisational & environmental information not onlydepends on the purpose of such system but also depends on contingency factorsof each organisation. Studies have shownsuccessful implementation of accounting information system which requires a fitbetween three factors (Markus 1983).
Firstly, a fit must be achieved withdominant view in organisation or perception of situation. Secondly, the accountingsystem must fit when problems is solved, i.e. the technology of theorganisation.
Finally the accounting system must fit with the culture, i.e. norms& value system that categorise the organisation.