COST ACCOUNTING MODELS AS TOOLS FOR MANAGERIAL DECISION MAKING (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC, ILORIN) TABLE OF CONTENTS
Title page
Certification
Dedication
Acknowledgements
Table of contents
CHAPTER ONE:
Introduction
Background of the study
Statement of research problems
Objective of the study
Significance of the study
Research question
Scope of the study
Limitations of the study
Study plan
Definition of key terms
CHAPTER TWO:
Literature Review
Introduction
Decision making in management
Cost – volume – profit (break – even) analysis model
Limitations of the model
Decision under certainty, uncertainty and risk
Role of decision model
References
CHAPTER THREE Research Methodology
Historical profile of the case study
Research hypothesis
Method of data collection
Population and sample size
Sample techniques
CHAPTER FOUR
Data presentation and analysis
Discussion of the analysis
Hypothesis testing
Discussion of finding
CHAPTER FIVE
Summary, Conclusion and Recommendation
Summary
Conclusion
Recommendations
Bibliography or Reference
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
The accounting
system is the major quantitative information acquired in almost every
organisation and it therefore provide information for three broad purposes
namely: internal reporting to managers for use, in planning and controlling
routine operation and non-routine operations. Formulation of major plans and
policies and finally external reporting to stockholder, government, debenture
holder and other outsides parties.
Manager
depends largely on quality and quantity of data received. Thus, information
flows on the management information system influence the effectiveness of
decision – making.
According to
“HORNGEN” the question of what accounting system to business most focus on how
decision and consequent benefits are going to be affected. One must ask what
decision will result from accounting data and what outcome will ensure from
decision making.
Accountants
continually work with accounting system and financial reports, which are
financial model of company operations. Models are useful because they provide a
conceptual representation of realities, enabling the decision maker to
anticipate and measure the effect of alternative actions.
Decision- making is choosing among alternatives, it occurs
as managers perform their planning and controlling function. A decision model
is one, which, in effect performed by management planning and controlling
function, but only extent that management delegates, when the model was
constructed and implemented.
In most organisation, the accountant is the quantitative
expert, and to retain and improve his status, the accountant should be aware of
the mathematical models may improve planning and control. And also strength and
weakness, when comparing and evaluating the quantitative sources of decision
recommendation, as the accountant is usually a member of the top management
team in these organisation.
According to “Thieraof” generally a model is defined as a
representation of an actual object or situation. A formal decision model
measures the predicted effect of alternative actions.
However, it is pertinent to note that according to the
report of the committee on management decision models, a mathematical decision
model may indicate a choice which is rejected by management because of more dominant
legal, sociological, psychological, political and other consideration not
include in the specific. In such instances, the output of the mathematical
model is only one input into a more completed decision model, which includes
qualitative as well as quantitative dimension.
1.2 STATEMENT OF
RESEARCH PROBLEMS
Industries
over the years glad seen cost accounting model as a tools for managerial
decision making which results to modern accounting system that have been
effective and efficient.
Since cost
accounting has been described as the tools that facilitates the measures which
predict the effects of attentive actions and yet, the management has not base
their decisions making on the effects predicted over the alternative action.
Secondly
qualified cost accountant has not been fully employed for them to show their
skills in the field and this has led to bad effects in the running of the
industry.
Moreso, the
researchers also discourage the up-coming cost accountant by collating,
analysizing and distributing wrong data to them thereby disqualifying them from
gaining employment in regards to this field.
1.3 OBJECTIVE OF THE
STUDY
Though there
are other various sources of information for management decision-making, cost
accounting models in particular and ensure cost control.
Cost
accounting renders useful information to decision making for proper planning
evaluation and control. Some of the information rendered comprises:- forcasting
of product costs of an order, budget preparation, determination of standard
cost and analysis of variances, budget preparation, determination of standard
cost and for proper cost identification. The major objectives of cost
accounting includes: