ABSTRACT

The paper examined the effect of accounting information on decision making process, with a particular reference to the Nigerian breweries plc. The research was geared towards understanding the operations in Nigeria breweries plc with an emphasis on decision making process. The problems, prospects and implications of the programme were also examined. The objective of the study is therefore to expose to various department the proper way to embark on effective accounting information. Firstly questionnaires were distribution of which thirty were completed and return using stratified random sampling. Also related literature dealing with the effect of Nigeria breweries plc were interviewed and secondary data were obtained from system. The data collected were later analysis and interpreted. From the study, it was discovered that accounting information is an important aspect of management policy, for higher productivity, efficiency and increased performance, though it in value a huge financial obligation. Finally, it was recommended that various organizations should therefore try and embark on accounting information on decision making for successful running of their organization.

TABLE OF CONTENTS

Title Page         -       -       -       -       -       -       -       -       -       -       ii

Approval -       -       -       -       -       -       -       -       -       -       iii

Dedication       -       -       -       -       -       -       -       -       -       iv

Acknowledgment     -       -       -       -       -       -       -       -       v

Abstract   -       -       -       -       -       -       -       -       -       -       vii

Table of content       -       -       -       -       -       -       -       -       viii

CHAPTER ONE

1.0      INTRODUCTION      -       -       -       -       -       -       -       1

1.1      Background of the Study         -       -       -       -       -       -       1

1.2      Statement of the Problems       -       -       -       -       -       5

1.3      Purpose of Study     -       -       -       -       -       -       -       7

1.4      Scope of Study         -       -       -       -       -       -       -       -       8

1.5      Research Question   -       -       -       -       -       -       -       9

1.6      Statement of Hypothesis          -       -       -       -       -       9

1.7      Significance of Study       -       -       -       -       -       -       -       10

1.8      Definition of Terms -       -       -       -       -       -       -       11

CHAPTER TWO

2.0      LITERATURE REVIEW -       -       -       -       -       -       13

2.1      Brief history on the development of the Company Nigeria

          Breweries Plc.     -       -       -       -       -       -       15

2.2      Accounting Nature   -       -       -       -       -       -       -       16

2.3      Accounting Objectives     -       -       -       -       -       -       17

2.4      Importance of Accounting Information        -        -        -        18

2.5      The Effect of accounting on the Nigeria Breweries Plc      21

2.6      Characteristic of Accounting    -       -       -       -       -       22

2.7      Users of Accounting Information     -       -       -       -       25

2.8      Tools of Accounting Information      -       -       -       -       28

2.9      Kinds of Accounting Information     -       -       -       -       30

2.9.1  Financial Accounting information and tools   -       -       31

2.9.2  Analysis of financial statement       -       -       -       -       32

2.9.3  Significance of ratio analysis -       -       -       -       -       37

2.9.4  Funds flows analysis      -       -       -       -       -       -       37

2.9.5  Cost and Management accounting information tool

          techniques and models for decision making   -       -       39

2.9.6  Cost classification   -       -       -       -       -       -       -       40

2.9.7  Cost volume project analysis -       -       -       -       -       41

CHAPTER THREE

3.0   RESEARCH METHODOLOGY-       -       -       -       -       44

3.1   Research Questions         -       -       -       -       -       -       -       44

3.2   Research Design      -       -       -       -       -       -       -       44

3.3   Area and population of Study -       -       -       -       -       45

3.4   Sample and sampling procedure     -       -       -       -       46

3.5   Instrument of data collection   -       -       -       -       -       46

3.6   Validation of the instrument    -       -       -       -       -       47

3.7   Method of Data Collection        -       -       -       -       -       47

3.8   Method of Data Analysis  -       -       -       -       -       -       48

3.9   Reliability of the Instrument    -       -       -       -       -       48

CHAPTER FOUR   

4.0   DATA PRESENTATION AND ANALYSIS         -       -       -       50

4.1   Data Presentation -  -       -       -       -       -       -       -       50

4.2 Data Analysis  --       -       -       --     -       -       -       .       50

4.3   Test of Hypothesis --       -       -       -       -       -       -       67

4.4 Discussion          of Findings -   -       -       -       -       -       -       70

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION  AND ECOMMENDATIONS

5.1   Summary of Findings      -       -       -       -       -       -       73

5.2   Conclusion      -       -       -       -       -       -       -       -       74

5.3   Recommendations   -       -       -       -       -       -       -       75

          Bibliography    -       -       -       -       -       -       -       -       77

CHAPTER ONE

1.0   INTRODUCTION

          This research work on the effect of accounting information on decision making process, a study of Nigeria breweries Plc, Nite Mile Corner Enugu on the effect that accounting information exert in improver the decision making process of a company with reference to Nigeria breweries Plc Nite Mile Corner Enugu.

          Decision making is simply making a choice out of several alternative or it is the process of studying and evaluating two or more available alternatives leading to a final choice.

1.1     Background of Study

          With the view of being independence, Nigerians has the view of a better tomorrow. We were able to feed ourselves and provide ourselves with social, economic and political endeavor. Subsequently our hopes seemed unattained which made the country becomes as strong as the Iroko tree. The idea had, was that it would be worst for Nigerians to our economic adverse situation raising its ugly head. This economic crisis has made financial institution industries (large or small scale) go into distress at alarming rate and those who service this financial problem has form the onset prepared his/her firm against this ugly situation by mapping out all kinds of straggles example increase in price of this goods, adopts favorable production tool, engage in marketing etc.

          Any business, firm, establishment that wants to survive this present day bad economy in Nigeria which must make a right decision, map out a good and competitive strategies to carry out his/her business successful. The price of any convincible item from garri and bread to electronic and educational items not to talk of the life wire of every man standing that is petrol which has presently made life unable for the adjust.

          The economy is really in direst acts, the era of mile thumb is employing it, is a sure way final abysmaky. Organizing human and natural resources intricately are the problems of various organization effective planning and decision making process. Other factors such as stage flat iron taxation, economic and political empowerment this research accounting cost accounting as well as management accounting. There are other branches of accounting that would be favorable “Financial Accounting” is that part of accounting which cover the classification and recording at actual transactions of an entitling in monetary terms in accordance with established concepts principles of accounting standards and legal requirements. It involved metamorphosed into a very complex web of inter-grated financial information system which modern organization cannot do without.

          It presents a broader, more overall view of the organization with primary emphasis upon classification according to type of transaction rather than the cost and management accounting emphasis on functions, activities, products and process and internal planning control. Cost accounting and management accounting are very much intrinsically inter that is to say that the different between the two superficial so that definition of management accounting is the provision of information require by the management for use, identifying, presenting and interpreting of information used for;

i.        Formulating strangely 

ii.       Planning and controlling activities

iii.      Decision taking

iv.      Optimizing the use of resources

          Accounting is the language of business as it is the basic tool for recording, reporting and evaluating economic events and transactions that affect business enterprises. It processes all documents of a business financial performance from payroll, cost, capital expenditure and other obligations to sale revenue and owners’ equity. It provides financial information about one’s business to the internal and external users, such as employees, managers, potential investors, financial institutions and others.

          The making of decision, as everyone knows from personal experience is a burdensome task, says Wadia (1966). In most cases indecision is as disastrous as making a wrong one, therefore a plan of action is indispensable. Management is constantly confronted with the problem of alternative decision making especially knowing that resources are relatively scarce and limited. It is therefore pertinent that good accounting information be made available for proper and accurate decision making, maximization of profitability and optimal utilization of scarce resource. Accounting information is not only necessary for evaluation of the past and keeping the present on course; it is useful in planning the future of the enterprise. It is a part and parcel of today’s life which is necessary to understand the accurate financial situation of the organization and used as the basis of making any decisions. Since strategic decisions have long-term effect on the business and therefore it is important to analyze accounting information for making strategic decisions. Accounting information helps managers understanding their tasks more clearly and reducing uncertainty before making their decisions (Chong, 1996). Accounting is sometimes referred to as a means to an end, with the ending being the decision that is helped by the availability of accounting information (Arnold and Hope, 1990).Accounting systems can aid in decision making,provide information relevant to the decision and to the decision maker (Gray, 1996). Effective and efficient accounting information plays a central role in management decision making (Tiramisu Tunji, 2012). Accounting information is one type of information 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 (Burchell et al., 1980). Accounting and financial information are among the most important information widely used in the managerial decisions (Royaee, Salehi, & Aseman, 2012). Within contemporary economic conditions, a successful manager needs a lot of reliable accounting information in order to be able to make quality business decisions (Miko, 1998). Economical information especially financial and accounting ones are the information which always managers use in short term and strategic decisions and they may have most application among different variables effective in decision-making and in all types of decisions (Royaee, Salehi, & Aseman, 2012 and Hubber, 1990).

          Decision making is the process of choosing alternative courses of action using cognitive processes. Making decision is necessary when there is no one clear course of action to follow. Accounting systems can aid our decision making by providing information relevant to the decision and to the decision making. Accounting systems also provide check for the validity through the process of auditing and accountability (Gray et al; 1996). Effective and efficient accounting information plays a central role in management decision making.

          The making of decision, as everyone knows from personal experience is a burdensome task, says Wadia (1966). In most cases indecision is as disastrous as making a wrong one, therefore a plan of action is indispensable. Management is constantly confronted with the problem of alternative decision making especially knowing that resources are relatively scarce and limited. It is therefore pertinent that good accounting information be made available for proper and accurate decision making, maximization of profitability and optimal utilization of scarce resource.

          There are some areas where accounting information helps decision making. It provides investors a baseline of analysis for – and comparison between – the financial health of security-issuing institutions. Financial accounting helps creditors assess the solvency, liquidity and creditworthiness of businesses. Financial accounting (and its cousin, managerial accounting) helps organizations make business decisions about how to allocate scarce resources. Financial accounting information helps in making Investment decisions as fundamental analysis depends heavily on a company’s balance sheet, its statement of cash flows and its income statement. All of the financial statements for publicly traded companies are created and reported according to the financial accounting standards set forth by the Financial Accounting Standard Board (FASB).

          Without the information provided by financial accounting, investors would have less understanding about the history and current financial health of stock and bond issuers. The requirements set forth by the FASB create consistency in the timing and style of financial accounts, which means that investors are less likely to be subject to accounting information that has been filtered based on a firm’s current condition.

          Accounting information also aids lending or dividend decisions as number of common accounting ratios that creditors rely on, such as the debt-to-equity (D/E) ratio and times interest earned ratio, are derived from the financial statements. Even for privately owned businesses that do not necessarily follow the requirements of the FASB, no lending institution assumes the liability of a large business loan without critical information provided by financial accounting techniques.

          Reliable accounting serves a practical function for the firms themselves. Beyond the regulatory and compliance hurdles that financial accounting helps clear, financial accounting also helps managers create budgets, understand public perception, track efficiency, analyze performance and develop short- and long-term strategies.

          In this study three decision areas such as financial decision, investment decision and dividend decision were selected. These different areas of decision somehow or in one way or the other solely depends on accounting information. Without accounting information individuals, companies or business organization into various kind of investments cannot determine financ

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