The use of accounting information system as a management tool to enhance decision making. (A case study of Nigeria airspace management agency
Information is aimed at ensuring a maximum amount of information is available
to the users that will enable them take meaningful decision regarding their
interest in a reporting entity.
rational behind the proposal is the fact that the importance, use and the need
for accounting information is boldly written on the entire sectors of the
economy without which it cannot stand. As one of the most important sectors of
the economy Aviating sector has been chosen as a case study of this research work.
decided to take a holistic look into the accounting procedure and processes involved
in generating accounting information in the Nigeria Airspace Management Agency
(NAMA) and the roles these accounting information play in the respective
decision of the Agency.
TABLE OF CONTENT
CHAPTER ONE: BACKGROUND OF THE STUDY
to the Study
of the Problems
of the Study
of the Study
of Research work
of the Study
CHAPTER TWO: LITERATURE REVIEW
History of NAMA
Role of Management Accountant in Decision Making
2.2 Nature, Merits and Limitations of Ratios as Tool for Decision Interpretation
2.4 Accounting Information System
and Usefulness of Accounting Information
of Accounting Information
of Accounting Information
2.8 The GAAP Provisions Concerning Accounting Information System.
2.9 The Accounting Information System (AIS) as a Tool to Enhance
CHAPTER THREE RESEARCH METHODOLOGY
CHAPTER FOUR PRESENTATION OF DATA,
ANALYSIS AND INTERPRETATION
Distribution of Respondents
of Respondents by Marital Status
CHAPTER FIVE: SUMMARY, CONCISION AND RECOMMENDATION
is the presentation of a systematically developed and accurately recorded financial
about an entity engaged in economic activity to the users of such reports. The
experts that provide the reports are known as Accountants.
from the provision of reports, the accountants also
interpret and analyze reports provided in order to assist those who use the
output of the interpretation and analysis for meeting their various needs. When
accountants perform the above stated functions, it IS described
as practicing accountancy profession. Thus, the entire effort of an accountant
is aimed at enhancing decision making m any organization or business
1.1 BACKGROUND TO THE STUDY
stage of development of man accounting records have been developed according to
the needs at that time. The records are so developed and used in enumeration
and control of assets, as reporting device for stewardship and the
collections, as evidence of trade and for the control of production or the
management of business.
earliest time, the process of levying and collection of taxes by government
called for proper record keeping and report. Such accounting records prepared
by Tax collectors served as a basis to reinforce business need for accounting
systems and controls.
development of social life especially the formation of states or sovereignties
and levying of taxes necessitated in addition to the knowledge of number, a
power of holdings, counting's and recording in this we find the
origin of science in accounting.
civilization shows that the Babylonian business men recorded their sales and
money lending some thousand years ago in day tablets. Egyptians used papyr, to
describe the collections before 1000bc.
to Richards Brown. (yr) the History of Accounting and Accountant Volume 2, he
stated that Greek and Romans had well developed record keeping
system especially for government purposes. Emperor Augustus was said to have
instituted a governmental budget. Inspectors from the central government in
Rome were sent out to examine the accounts of provisional governors. The
Grecian also have their accounts engraved on stone and exposed in. public specimen, such accounts are among the Elgin marbles in the British
Museum. In Great Britain, the earliest systems of accounting of which there is
record are those of exchequers of England and Scotland.
oldest, which has been preserved is the English pipe roll of 1130-1131.
above, there are many existing records of early development of accounting not
mentioned, it is an evidence to show that so many accounting activities have
taken place in the past.
modern methodology of keeping accounting record began with the introduction of
double entry in the thirteenth and early fourteenth centuries. This was the
period of rapid expansion of commerce and industry. Among the
records based on the double entry system to the book of a French form, the
Fremes Bonis of Mortauben, which were kept during the years 1345.
form the use of books to obtain a review of its position and made up a list of
its debtors and creditors. l.C.B Niclcerson reported in his book Accounting
Hand Book for Non-Accountants, that book has been preserved from 1297 belonging
to Riherio and Baldo Fini in which accounts were opened not only for personal,
but for things and two classes were debited and credited vice versa in regular
fashion. The book keeping records in this period were in the rudimentary stage
without any definite period of balancing.
certain situations, the account are not even kept in the monetary unit for
example, it was reported that in sleveterly loccite page 309 that firemes Banis
opened an account in 19th December 1345 and records were continued
in this account without intermission to the 11th December 1358,
debit and credits were also by no means separated by often place one below the
other as they occur.
there were no attempt to balance and in some cases the accounts were not even
kept in the same monetary unit.
records that brings out complete double entry system in account is the one discovered
in Genwa in the year 1340 in accounts of the stewards to the Local authority.
The date when this entry actually commenced could not be determined. Another
records in Genoa kept on double entry system is that preserved in Venice. These
records belong to traders, neither bankers and stewards of Local authorities.
records of the Merchant of vernice can be described as complete since every
debit has a corresponding credit and profit or loss account is even transferred
to capital account.
period was 1416-1440. It was from this venice that the first treatise on the
subject was given to the world in 1494 by "Luca Paciolo" who was one
of the most celebrated mathematician of his days. The purpose of the work was
not in the first place to give instructions in book-keeping, but to summarize
the existing knowledge of mathematics. However, he brought an end to the works
by coding the treatise of bookkeeping.
1.2 STATEMENT OF THE PROBLEMS
critical examination of the management process shows that management is into
business for the purpose of maximization of profit.
be achieved when decisions made by managers of the business are channeled
towards the following areas.
Sources of fund decision
Dividend policy decision.
future destiny of an organization is planned and controlled by management. When
good decisions are made through the use of accounting information at the end of
this research work, the following problems must be critically analyzed.
Can good management contrive realistic ways to
achieve the company's or business objective without accounting as a basis for
management decision making tool?
Can management manipulate the controllable variables
and plan for the non-controllable variables without accounting as a basis of
How proactive are the decisions of
management/managers without accounting as a basis for management decision
Can we measure the performance of managers by
planning and decision making which determines management competence without taking
into consideration the accounting system as a tool to enhance decision making
in any organization.
these will serve as our statement of problem in this research work.
1.3 OBJECTIVES OF THE STUDY
information is a tool to enhance decision making in all human endeavors. It plays
a key role in management, management function and management processes.
cannot achieve their optimum output, wealth creation and wealth maximization
without effective decision making tool.
objectives of this research will be as follows:
decision making process as it relates to:
objections of an organization.
ii. Searching for alternative courses of action.
iii. Gathering data about alternatives.
alternative courses of action
v. Implementing the decision
vi. Comparing actual and planned out comes
vii. Responding to divergence
Understanding conceptual view of management role
through the use of accounting tools.
Understanding the use of accounting tool performance
Understanding the roles of accounting information as
a tool for decision making under condition of risk and uncertainly.
To established the relationship between the accounting
information system in NAMA with decision made base on accounting information
have yield any positive result in time past.
1.4 RELEVANCE OF THE STUDY
research work will be focusing on how effective and profitable decisions can be
made through the accounting tools and accounting knowledge.
research work will assist in the following areas.
Staffing and human resource management
Leading and interpersonal influence
1.5 SCOPE OF THE RESEARCH
scope of the research work will be based on the decision making by management
of organization, which will be limited to our case study (NAMA) management
decision art across different levels of organizational hierarchy.
research work shall be limited to the different levels like lead of
departments, head of units, sectional heads, group heads
and regional heads of NAMA. This research work shall also be extended to
decision making areas like:
Capital budgeting decisions
Budgeting and budgeting control decisions
Inventory control decisions
Performance evaluation decisions
Pricing decision and
Profit analysis decision.
1.6 LIMITATION OF THE STUDY
major problems which served as limits to the extent of this research work were
The entire branches of NAMA in the country could not
be visited due to financial and time constraints.
The concerned offices were not willing to give
adequate responses to the research questions.
Relevant data available were not be sufficient
enough for the purpose of the research.
The researcher is financially constrained, this
limit the extent of the research works to that which is affordable.
1.7 DEFINITION OF TERMS
the terminologies the research will contain are:
directorates of NAMA:
Directorate of Human Resources (DHR)
Directorate of Finance (D()F)
Directorate of Air Traffic Service (DATS)
Directorate of Electronics Services (DSES)
Directorate of Corporate .Affairs / Legal (DCALS)
Directorate of Aeronautical Information (DAIS)
Directorate of Commercial and Big Developments
A social process entailing responsibility for the effective and economic
planning and regulation of the operation of an Organization in fulfillment of a
given purpose or task.
Accounting: 1s the process of identifying
measuring and communicating economic information to assist the users in making
judgments and decisions.
Process: Is a set of
inter-departmental activities used by management of an entity of execute the
functions of management which includes planning, organizing, staffmg, heading
control: Is a proves by which managers
ensure that resources are obtained and used effectively in the achievement of
the organizational goal.
Planning: The process of deciding on
objectives of the organization on changes in the objectives and on the policies
that is to govern the acquisition use and disposition of these resources.
control: The process of pursuing that
specific tasks are carried out effectively and efficiently. This will also
represent the pre-occupation of the low management cadre. Corporate Strategy: Is a long term plan which
looks into what the organization intends to achieve and the means or resources
regard to achieve them.
strategy: This is concerned with
decision about how to compete in a particular market. This therefore likely to
focus on individual unit i.e. product or market within the organization.
Operational strategies: These
are concerned with how different functions of the organization like marketing
manufacturing, accounting operate.