BACKGROUND TO THE STUDY
In the world today, record keeping is very necessary in any business organization, this leads to accounting.
Accounting can be defined as the
application of professional knowledge in the field of cost analysis and
cost accounting to provide necessary information that is useful to the
management in the exercise of their decision making, duties and
Accounting is also a process of
collecting data analysis and presentation of information for the purpose
of assisting the management in effective decision making.
Accounting extends far beyond actual
making up of records, it is concerned with the use of records to compute
the analysis and interpretation, studying the various alternatives open
to the firm and using this accounting experiences in order to aid
management decision making as information has value if it is used
judiciously for decision making and utilized by individuals.
As a result, the requirement of each
individual and the relevance of the information to be provided should be
that which is within the understanding and control of decision making
Accounting generally serves as a mirror which shows to the outside world the image of an enterprise.
It enables the final consumers of the report to take proper decision.
Account is all about accountability most
organizations are externally accountable in some ways for their actions
and activities. They will produce reports on their activities that will
reflect their objectives and the people to whom they are accountable
1.1 STATEMENT OF THE PROBLEM
Due to vital roles played by accounting
in management decision making process, the researcher tends to find out
those causes that hinders accounting and to highlight the implication of
accounting towards decision making.
1.2 PURPOSE OF THE STUDY
The purpose of this research project is
to review and to evaluate the performance of the organisation as regards
to accounting as an aid to decision making with particular reference to
its functions and the role as its relates to the industrial sector of
the Nigerian Economy.
To examine to what extent these
functions and objectives for which the decision making was established
and how far it has been achieved.
Also to examine the areas of problems such as “bottleneck” in accounting to achieve desired goals.
To also examine areas such as
operational policies and orientations, disbursement procedures, interest
charges on account and other commitments.
1.3 RESEARCH HYPOTHESIS
The researcher wishes to make the following hypothesis:
HO1: Are there any relationship between accounting as a tools and the decision of the management.
Are there any relationships between accounting as profession?
H O2: Are there any relationship between the accounting department and other departments?
H O3: Are there any relationships between records keeping and accounting as a profession?
1.4 SIGNIFICANCE OF THE STUDY
This study will be of great significance in so many ways in the following aspects:
This study will reveal some of the work
carried out in the past in specific area of study i.e accounting as an
aid to decision making.
This study will also provide an indepth
information on how accounting tools can be used in increasing,
analyzing, recording and presenting human resources investment and all
cost associating to accounting.
This study will also help to highlight
some ways in which management information can be valued in monetary
terms and be included in annual financial statements.
This study is also important in the area
of revealing all the associated costs of accounting and how they can be
controlled through techniques.
1.5 DELIMITATIONS OF THE STUDY
This research work is directed to
examining the relevance of accounting to management decision making in
tertiary institutions in Nigeria.
Since there are so many tertiary
institutions all over the country it is therefore not possible to carry
out a research on all tertiary institutions in the country. As a result,
this research has been limited to Lagos state university to represent
all the tertiary institution in Lagos state.
1.6 DEFINITION OF TERMS
- Accounting: The activities of recording and reporting on the movement of money, stock or other human financial activities.
- Financial Statement: They are made up of balance
sheet, profit and loss account, cash flow statement, notes and other
statements which collectively are intended to give a true and fair view
of the financial position and profit and loss.
- Assets: Assets are economic resources from which
benefits can be obtained by the owner whether immediately or in the
future e.g land, buildings, equipment, plant and machinery. It could be
fixed, current and fictious in nature.
- Historical Cost: It is a convention valuation
concepts used in accounting. Resources are valued in accountancy with
their acquisition cost by the enterprise.