Premium Essay

The Use of Accounting Information

In: Business and Management

Submitted By olamart
Words 7618
Pages 31
THE USE OF ACCOUNTING INFORMATION AND DECISION-MAKING IN ORGANISATION
(A CASE STUDY OF MUXOL PAINT DEPORT, BENIN CITY)

BY
DAVID UYIGUE
UNAD/ACC5/2007/371

A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCE, UNIVERSITY OF ADO-EKITI, NIGERIA.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE (B.sc) DEGREE
(HONS.) IN ACCOUNTING

FEBRUARY, 2014
CERTIFICATION
This is to certify that this project work was written by DAVID UYIGUE of Department of Accounting, Faculty of Management Sciences, University of Ado – Ekiti State, under my supervision.

------------------------------ ------------------------------
DR KEMI OGUNDANA DATE
(Project Supervisor)

----------------------------- ------------------------------
DR. OGUNDELE J.F. DATE
(Degree Coordinator)

DEDICATION This project work is dedicated to God Almighty, through His only begotten son, Jesus Christ for His Faithfulness and mercy. This project is also dedicated to the family of Mrs. Veronica Uyigue for their financial support.

ACKNOWLEDGEMENTS First and foremost, I will like to acknowledge and appreciate Almighty God who saw me through my course of study and granted me the grace to complete this project work. through His only begotten son, Jesus Christ and His Faithfulness and mercy. My profound gratitude goes to my able project supervisor Dr. Kemi Ogundana for her constructive, criticism, guidance and encouragement which led me to a successful completion of this project work. I am really grateful ma. Also my appreciation goes to my H.O.D for his fatherly care and love. My sincere gratitude goes to my lovely family Mrs Varonica Uyigue for their financial and moral support throughout my academic days. May you eat the fruit of your…...

Similar Documents

Free Essay

Information Use

...Information Use Information Use Information can be used in a variety of ways in today’s world. Companies use it to track profits and losses others use it to see into future trends so they can make informed decisions about where their business should be in a certain market. According to Opara (2003) “Information is the life blood of modern organizations.” Without information organizations would be making decisions blind. Information in a modern organization flows in a circular motion. For an example of how a major car dealership uses information it gathers. A customer who is prospecting for a new vehicle enters a car dealership not sure of what kind of vehicle he or she may want. An associate greats the new customer and asks a few question to discover what the customer is looking for. This would be the input information that the associate will use to enter into an information system (IS) from this system the associate can help the customer choose what vehicle he or she may be looking for. The information is presented to the customer, after looking at the information the customer chooses a vehicle he or she wants to purchase. The associate inputs his or her personal information into an IS to qualify the customer for financing the vehicle. The information is used by the finance department to set up the financial obligation that the customer will have to pay. Once again the information is cycled back to the customer for his or her input. After the sale of the vehicle the......

Words: 763 - Pages: 4

Premium Essay

Accounting Information

...Problem 1-4 Managers need accounting information and need to know how to use it. Critically evaluate this statement. Accounting information provides managers with data needed to determine whether a business is at a profit or a loss, how much debtors owe, company’s liabilities, and much other financial information. Accounting measures business transactions and as such can help direct managers in the right course with concrete information. Principally accounting information is a tool for managers to make business decisions on a timely manner. For example, if by using accounting information, managers notice that the trend is for sales to decrease, then they can take measures to stop this trend. Maybe they need to change prices or decrease expenses to handle the down-trend. The key is that accounting gave them the clue that something may not be going according to plan and as we know planning is an important role in business management. Lately we have witnessed an ever expanding basis of knowledge for the design of effective management accounting systems. New areas of expertise have continually provided new visions, opportunities and challenges to the conventional approaches. Perspectives drawn from economic theory have provided a sound basis for selecting information related for decision making and the application of mathematical skills has added to our potential for thoroughly analyzing complex problems. Moreover the developments in computer technology have ensured the......

Words: 588 - Pages: 3

Premium Essay

Accounting Information

...of Management Accounting Techniques in Decision-making: An Empirical Study on Manufacturing Organizations in Bangladesh Farjana Yeshmin* and Md. Amran Hossan** Management accounting is concerned with gathering and reporting internal financial information to facilitate decision-making process. As management accounting is not required to conform to national accounting standards, it allows business to customize the management accounting techniques as per demand of company. As a process of this customization, some advanced quantitative as well as number of qualitative techniques accompany with the traditional techniques, have been emerged to cater the information need in decision making. This study attempts to measure the significance of management accounting techniques in decision making of the selected manufacturing organizations in Bangladesh. In doing so, a total of 74 manufacturing organizations have been surveyed with a structured questionnaire by using 5 point Likert Scale measurement from different categories of manufacturing organizations. Findings reveal that cash flow statement analysis, ratio analysis, budgetary control, CVP analysis, variance analysis and fund flow analysis have been frequently high-ranking techniques. Secondly, the authors have recognized five factors to calculate the variability in decision-making with the help of rotated component matrix which shows that 75.125 % of the total variability has found in the usage of management accounting techniques.......

Words: 6527 - Pages: 27

Premium Essay

Accounting Information

...The European Accounting Review 2002, 11:1, 119–151 Accounting and capital markets: a survey of the European evidence Pascal Dumontier ` Pierre Mendes-France University, Grenoble Bernard Raffournier University of Geneva ABSTRACT The relationship between accounting information and capital markets has been the subject of numerous studies, especially in the US. The purpose of this article is to examine the corresponding evidence in Europe. This review classi es the European literature into three groups: studies of the market reaction to newly released accounting information; studies of the long-term association between stock returns and accounting numbers; studies devoted to the use of accounting data by investors and to the impact of market pressure on accounting choices. The paper reviews and summarizes the main results related to each of these topics. It also addresses some methodological issues and provides suggestions for future research. 1. INTRODUCTION Since the pioneering work of Ball and Brown (1968), the relationship between accounting information and capital markets has attracted considerable attention, to the point that it is probably one of the most popular issues in the accounting literature. The interest for this subject is legitimate, given the generally accepted statement that accounting gures are aimed at providing investors with relevant information for their investment decisions. Even if accounting data are used in various contexts such as the......

Words: 15961 - Pages: 64

Premium Essay

Information Use

...Information Use Ngoc Le CIS207 November 24,2013 Karen L. Miles Information Use Information is used everyday to keep you updated with your personal and work settings. Information used in a business is extremely crucial to an organization because it can help your organization grow and improve with new strategies with the new information collected. Information flow is data that goes in 2 ways among managers and departments. Information can flow vertically meaning flowing up and down among managers and horizontally for information traveling through different departments. In many organizations information is extremely important because without data flowing in and out of departments and passing through different people you can have a successful organization. Each manager is in charge of a different part and each departments covers different things in order to complete the job. With information passing vertically and horizontally it keeps everyone updated with new data. The five most basic departments every organization would be accounting that helps keep track of all the financial parts of the business, Production will produce the product, Marketing will handle all advertisements and selling the product, human resource department helps find and hire new employees and last would be researching all products and discovering new things. There are three different management levels in most organizations, Supervisors, Middle management and then you have the top management.......

Words: 840 - Pages: 4

Premium Essay

Information Use

...Information Use Travis Fowler IT/205 Week 4 August 1, 2014 Marianne Daugharthy   Information is an invaluable commodity that is used, stored and shared on a global level. For generally all organizations storing their information and keeping it safe and protected is of the utmost importance. Many larger organization employ an I.T. department that manages and protects their information on a daily basis. In the ever progressing information age, gaining or losing information could mean making or breaking pretty much any organization under the sun. For smaller organization, such as Three Feathers Manufacturing, the I.T. department falls into the job description of the upper management. Because of its small size, Three Feather’s managers must organize, share, gain, and protect their information without having a 24/7 I.T. guy who has been trained to do so. This can be dangerous for the organization because they must rely on software that at its best would fall prey to some of the world hackers in a matter of minutes. Luckily though, many of the products developed at Three Feathers are basically common knowledge to all of its competitors. When there is a development that needs to be kept from prying eyes, reverting back to simple paper and file cabinets is the method of protection. For the employee information and customer information, a basic database is set up to collect and sort any input. Employees information is compiled in alphabetical order and consists of phone...

Words: 553 - Pages: 3

Premium Essay

Accounting Information

...Accounting Information Systems Maxell XACC/210 August 08, 2014 Donna Tennyson Accounting Information Systems Companies or businesses have different information systems to assist in conducting the corporations’ daily financial operations. The various types of accounting systems employed by accounts receivable, payroll, accounts payable, and accounting in general are vast. These include common ones such as UltiPro, ADP Payroll services, and QuickBooks Payroll. Paychex Inc. is a payroll and human resource service company which serves many businesses in the US. The company services include payroll services, 401(k) plans, group health insurance, HR Administration & Compliance, time and labor management. QuickBooks payroll is used for calculating taxes, filing and paying taxes, and payroll. Companies can also switch to running QuickBooks payroll manually, in a similar fashion to hybrid software. Indeed, manual payroll requires the calculation and filing and paying of your own taxes. Another software is Microsoft excel which is an automated spreadsheet package that can be used for keeping, consolidating and handling data. Other processes that excel programs are used for includes: charting, or graphing data to support users in recognizing data movements, sorting and clarifying data to find specific information. QuickBooks software is developed and marketed by Intuit to perform various accounting task across the different departs of a business. One can gain from Intuit......

Words: 1082 - Pages: 5

Premium Essay

Information Use

...Information Use Introduction Information flow through an organization is the process by which data is sent and received in both external and internal aspects (www.opengroup.org, 1995). External aspects are anything flowing into the organization or out from the organization. This flow, for example, can be represented by ordered supplies entering the company, or by finished product being shipped to the customer. Internal aspects are the flow of communication between all the companies working parts. These parts can be manufacturing, legal, finance, maintenance, etc. To effectively tie all these components together in a safe way, an organization might invest in an Enterprise Resource Planning system, or ERP for short. This system, although expensive, can monitor and control all aspects of data transfer within an organization. Using an ERP system can accurately report inventories, product details, work audits, and several other aspects of running a business (www.netsuite.com, 2001). Most important of all is accuracy. By Utilizing an ERP system the business will have several checkpoints where products and the processes for creating them are monitored. By always sending out the right product or information an organization can save a fortune in clean up costs and legal fees in the event of an error. An organization must also look at physical and network security options to protect all their assets, the integrity of the ERP system, and any other critical data flowing......

Words: 1041 - Pages: 5

Premium Essay

Information Use

...Information Use Dennis L. Van Brunt IT/205 July 6th, 2014 Anthony O'Hare Information Use In the business environment, the more information the company has and the more organized the information is, the more profitable the company will be. Ultimately the businesses goal is to provide a consumer with some type of product or service. Information must be used to determine the need of the consumer by analyzing marketing databases and data mining information to identify consumer trends to tailor the business to their needs. Tailoring the needs involves using the marketing information from the databases and partnering with suppliers to determine costs of production and materials needed. The information is accessed by the business to make further decisions about how they will get their product to the marketplace. All of this information is stored in different databases. These databases are then managed as a whole by a Database Management System (DBMS). “A database management system (DBMS) is a specific type of software for creating, storing, organizing, and accessing information from a database.” (Laudon, 2013) At Target Corporation information management is crucial because the world of retail is very dynamic and must be able to respond very quickly to the consumer’s demands that change daily. Before a store is even built information is used to begin to determine the demographic of the area and to determine pricing and sales. At the corporate level supply and demand......

Words: 765 - Pages: 4

Free Essay

Information Use

...Information Use Josh Dunn CIS/207 11/10/2014 John Maloney Information Use Information systems have played a major role in the way companies do business. Information is a very essential part of the modern organizations and is required to run them efficiently. We can say it in another way that without an information system an organization system is bound to collapse. Information is needed to control the day to day operations properly and in an effective manner. From making key decisions to implementing them everywhere there is need of information at every step. The importance of information and its management to organizations is undeniable very large. The organizations which are able to manage information successfully are also successful in other aspects of business. Commonly information is defined as data that is timely, accurate, organized for specific purpose and presented in a context to make it meaningful and relevant. Information, generally leads to rise in understanding and decline in uncertainty. Information is considered important as it can affect behavior, decisions as well as their outcomes. Suppose a manager receives the information that his company is struggling during a certain time of the year he can use that information to make certain changes to help cut costs to operate the organization. If information is received that does not affect or bring any change to the organization that information is considered useless or unimportant. Information at......

Words: 793 - Pages: 4

Premium Essay

Information Use

...In today’s society most business are reliant on information systems to perform everyday activities. These activities range from inventory to customer relations to employee files. An example of this is information technology in the healthcare system. Healthcare systems such as the EPIC system which is what most healthcare establishments have upgraded to in order to handle everything from physicians notes to patents protected health information and test results. Many companies have done away with the old methods of file keeping such as paper files and now store all of their business information such as contact information, suppliers, employee files and other information on an electronic database. By using an electronic database companies are able to better relate customers, suppliers, and parts. For example a company might use a relational database table system. This would mean that the organization would first make a table with all of the suppliers assigning each unique supplier a personal number to identify them by in case of multiple suppliers having the same name. The company would then have a list of all of the parts they acquire from all of the suppliers. Each part would be assigned a specific part number and the table would include the supplier number for the part. By organizing information like this it is much easier for a company to be able to order more parts from a supplier because the supplier is connected to the part verses having to look through an entire......

Words: 789 - Pages: 4

Premium Essay

Information Use

...Information Use Rochelle Hall CIS 207 January 5, 2015 Professor Ezam Mohammed When identifying and describing how information is used is that there are different types of information that can be used, or and the way information flows in an organization is it needs to collect certain amount of data to better help the organizations also to learn more about what is going in the organization. Information flows in different directions and have different meanings which is formally and informally, downward, upward, even horizontally through various levels. Information is also used through knowledge and data they can be derived. We all know if you don’t have any information in a workplace or organization it will collapse. Companies cannot operate without a proper and concise information flow which is accessible through company’s different departments. My current place of employment is Macys. Macy’s Inc. is one of the nation’s premier retailers, we have over 800 stores. The company operates the Macy’s and Bloomingdale’s brands. In Macy’s, information flows all over the company, from the employees payroll, records, and emails. As Macy’s is a nationwide company that have stores all over even in Puerto Rico, Guam and Columbia. To keep all the employees on the same page we have a system to control the flow of our information, I just know so much of the spectrum of the Information Technology aspect of the company. We have a database it’s called insite connection website, only...

Words: 345 - Pages: 2

Premium Essay

Information Use

...CIS/240 Today Information is the lifeblood of all modern businesses. From Manufacturing, Customer Support, HR, Quality Assurance and Engineering, each department relies upon information in some form shape or fashion to accomplish their task. As a former Customer Support Engineer, I received calls from customers all over the globe. As I spoke to those customers, I would log a trouble call for a specific product for that customer. With the customer on the phone I would have information about their locations, the different types of systems installed, the number of drives, the type of power supplies, and software configurations. To this already stored information, I would add additional information to the database. Information such as what trouble the customer is experiencing today; is the customer's data currently available or unavailable, if unavailable how long has the customer been out of operation. This data is collected for every customer and stored. As this data grows daily, the use of enterprise storage solutions was implemented where it is backup to a secondary site for disaster recovery. As this is a 24/7 call center, all upgrades, hardware or software were first performed on a non-production side of a duplicated environment before upgrading the disaster recovery site, followed by the production site. The information gathered from the customer service department would flow throughout the organization as a whole, and allow departments that rely on the data......

Words: 633 - Pages: 3

Free Essay

Information Use

...Information Use It seems that information can make or break an organization. It can be sent through email, old fashioned paper documents or word of mouth. Information can produce important knowledge that can lead to responses that are necessary to realize whether a company is doing well or going down the drain. I hope to explain how information is used and how it flows through an organization well enough for you to understand within this paper. You can say that data and information do not have the same meaning although we use them interchangeably. When you receive data you have to put it through some steps in order for it to be considered information to be used by an organization or company. First you have to acquire the data. There are various ways to receive opinions of customers. This can be done by posting on social websites, emailing or having a customer respond to a survey after a telephone call with the corporation. After the data is received it has to be classified or identified. You can do this by choosing what types of data that needs to be classified such as account data, personal data or commercially valuable data. Another way to think of classifying data would be to have it broken into sections such as prohibited, restricted,00 confidential and unrestricted information. While classifying and identifying data it should meet certain confidentiality requirements. A plan must be put into place, maybe by a team, to sift through and find the desired data. The......

Words: 846 - Pages: 4

Premium Essay

Information Use

...results, information must be communicated and shared amongst an organization. This information can be shared in various ways such as verbal and technical communications. Information within an organization is used to comprehend the importance of the input and outputs of the business processes in such ways as collaborations of ideas, sharing of concepts, rules, regulations, and business processes. Every organization has data, files, business, and personal records. Organizations have become more reliant on technology. With this reliance comes a sense of dependence on technology for daily business operations, therefore it is very important that organizations protect their information because they can easily be exposed and vulnerable to cyber attacks. The flow of information plays a major role in today’s business operations. Information can simply mean anything that has value to a company. In order for information to stay relevant in an organization it must rely on technology. All of the normal business operations need some sort of IT system to process the information in order for the business to operate efficiently and professionally. Having IT systems can save the organization valuable time in retrieving information. IT systems assist organizations from analyzing information, prevention of large-scale human error and decrease in inaccurate information. IT systems have assisted in the growth of many organizations by simply organizing vital and valuable information. If an......

Words: 625 - Pages: 3