ASSESSMENT OF THE EFFECTIVENESS OF ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION (A CASE STUDY OF PZ CALABAR)
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ASSESSMENT OF THE EFFECTIVENESS OF
ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION (A CASE STUDY OF PZ
CALABAR)
ABSTRACT
The
effectiveness of accounting information as a tool for management decision
cannot be over emphasized. Accounting keeps the financial score for a business,
it call attention to the problem and the opportunities that comfort the enterprise.
Where action in needed, it suggests possible solution or answers.
Accounting is an intellectual discipline, we
need a working definition, accounting is defined as the act of analyizing
evaluating and interpreting an organization financial activities and
communicating the result to those who are interested. It can also be defined as
the process of identifying, measuring and communicating the result to those who are interested. It
can also be defined as the process of identifying, measuring and communication
economic information to facilitate informed judgment to serve organization
objectives. (According to WALGENBACH,
P.H.. ET AL 1977), in his book “Financial accounting and introductory”.
From the definition above, itr could be
observed that accounting is not restricted to the recording of transaction in
monetary terms but it also provide information to its users. Accounting can be
widely classified into two categories, they are:
USERS OF
ACCOUNTING INFORMATION
Accounting
information are required and used by various classes of people e.g. owner of
the business, the government, investors, employees and creditors.
Sizer john (1969): say that “ the owners of
the business share performance, compare their organization with similar others
to enable them decide either to increase or decrease their share in the
company. Through the use of accounting information, the government can
determine that business are meeting their legal obligation to pay taxes,
contribute social security benefits for their employees and also satisfy other
regulations such as those concerning the registration and trading of their
stock.
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