ACCOUNTING INFORMATION AND DECISION MAKING IN THE PUBLIC SECTOR OF NIGERIA (A CASE STUDY OF BANK OF AGRICULTURE LOKOJA BRANCH)

Abstract

This study was on accounting information and decision making in the public sector of Nigeria. Three objectives were raised which included:  To determine the nature of accounting information in public sector, to appraise the effect of accounting information on decision making in public sector and to determine the use and application of accounting information in decision making in public sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Bank of agriculture lokoja branch. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

The imperative of planning with the help of accounting information before the commencement of operations is essential for management to facilitate the decision making process of fundamental issues affecting the survival, wellbeing and growth of an organization. Accounting information is often regarded as a means to an end, with the ending being the decision that is helped by the availability of accounting information as described by Arneld and Hope(1990). Accounting information helps managers understand their tasks more clearly and reduces uncertainty before making decisions. since profitability have long term effect on the business, it is therefore important to analyze accounting information before making profit decisions (Chong 1996). Similarly, accounting information is recognized as a learning machine that can help to evaluate how objectives might be  achieved by quantifying the financial impact of each alternative available to the decision.(Budugan and Georscu 2009).

Accounting information system is therefore imperative which is the efficient and effective collection and storage of data concerning an organisations financial activities, including getting the transaction data from source documents, recording the transaction in journals and posting data from journals to ledgers. It involve producing managerial reports and financial statements. Decision making process in the organization is effective with the availability of sufficient accounting information. Accounting information for profit planning usually covers three major elements such as cost information ,marketing and sales information(Admareli, 1991). According to Norton (1997) costing contributes to an understanding of how profits and value are created and how efficiently and effectively operational processes transform input into output.It can be applied to resource, process, product/service, customer, and channel related information covering the organization and its value chain (Metcalfe,1998).Thus the decision making process lies at the heart of accounting information The research intend to investigate the use of accounting information for decision making in the public sector of Nigeria.

 
1.2 STATEMENT OF THE PROBLEM

The problem confronting the research is to investigate the use of accounting information for decision making in public sector. The efficiency of planning and decision making cannot be isolated from the availability and sufficiency of accounting information if the organization must survive, grow and operate maximally to make profit and attain its set objectives.

 
1.3 OBJECTIVE OF THE RESEARCH

1. To determine the nature of accounting information in public sector
2.  To appraise the effect of accounting information on decision making in public sector
3.  To determine the use and application of accounting information in decision making in public sector

1.4  RESEARCH HYPOTHESES

h0: there is no nature of accounting information in public sector

h1: there is nature of accounting information in public sector

H0: there is no use and application of accounting information in decision making in public sector

h2: there is use and application of accounting information in decision making in public sector

1.5  SIGNIFICANCE OF THE STUDY

Accounting information is very important in the life of any business. It is based on this information that the management will be able to make wise decisions. The accountants present the accounting information in such a way as to assist management in policy and decision making in the day to day operations of the company. Based on the information produced, the management will have the benefits on using it to plan and control their current and future operations. Based on it also they will come up with their management decision and information of long term plans. The information also will help the management report historical information to outsiders The account manager, based on the management plan (target/standards) will analyze the performance of the organization and access whether the organization actually attained the standard set by the management or not, if 8 there is any variance, the management in charge of accounts will look into it to find out the causes of the variance and the report to the management based on that report. The management can make a wise decision that will take the cause of the variance into consideration. The use of accounting information is so important that the management of any organization cannot do without it.

1.7    SCOPE OF THE STUDY

The study focuses on the appraisal of accounting information and decision making in the public sector in Nigeria

1.8     DEFINITION OF TERMSACCOUNTING INFORMATION SYSTEM DEFINED Accounting information system is therefore imperative which is the efficient and effective collection and storage of data concerning an organisations financial activities, including getting the transaction data from source documents, recording the transaction in journals and posting data from journals to ledgers. It involve producing managerial reports and financial statements.  
DECISION MAKING DEFINED Decision making involve choosing from among a given alternative the best possible option of a solution to a given problem confronting an organization at a given point in time.

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