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ACCOUNTING INFORMATION FOR LOWER LEVEL MANAGERS.

Format: MS WORD  |  Chapter: 1-5  |  Pages: 67  |  1773 Users found this project useful  |  Price NGN5,000

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ACCOUNTING INFORMATION FOR LOWER LEVEL MANAGERS: A CASE STUDY OF ANAMCO LTD EMENE  ENUGU

 

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Business firms are established to achieve specific objectives. This may be to maximize profit or its shareholder weather.  These are called “the and in view” Coventry, (1980;83) or the end of planning” Koontz (1980:189).  In the pursuit of this objective, certain persons occupy positions of authority and are charged with the responsibility of integrating, through the functions of planning organization, directing are controlling, human and material resources and channeling such towards the actualization of the objective.  There persons are the mangers.        In a typical organizational structure there are three categories of managers.  These are the top medium and lower level mangers. The first group makes strategic decision by monitoring the external and internal environment of the firms forecasting operations, at the same time make long range plan.        The medium level mangers make tactical decisions and intermediate plans on how to achieve plans made by the top managers.  While the lower level mangers are controllers of operations and implementations, they interact directly with the workers and understand their problems better.  These managers also understand better the job problems.  They are also retired to as “front line foremen and supervisions” Okono, (1993:62) Loto performs the day to day routine functions and makes adhoc plans to achieve objectives of minimal cost.        Business secessions are made in a complex and uncertain environment. This calls for a careful planning and implementation of plans for such plans to be made, the planner must be well informed on the object of planning.  In the work of Ase chemic (1994:12), the off-the-scene, non-certainty, and social disintegration problems faced b mangers call for the use of information.  

Woel fel (1980:12) argued in favour of information when he called it “the raw material for decision making. To butteries his point, he further argued that “there is a direct relationship between the value of information received and the appropriateness of the decisions made”.        In a business concern information can be obtained from one accounting, marketing, external, research or other information sources.  The use determines the courses and varies information content.  Information can be presented in financial or non-financial form.  It could be used, disregarded or seen to be irrelevant and complex by mangers.  There are also cases when mangers are starred of information.

Knowledge in managing businesses operations historically evolved when Luca Pacioli’s (Ballada 2012, p.6) uncovered and introduced his double-entry bookkeeping system, people realized its importance to life and businesses all over the world. Nowadays nations continued to make it more meaningful to users especially stakeholders, they make others understand the body of accounting knowledge together with the initiations of accounting information technology. Managers of an organization need a more essential and general understanding of what the management work entails and that understanding can be gained from theories, textbook and literature. Management Accounting is renowned to be very useful accounting resources that extensively help organizations incorporate cost accounting data, financial and non-financial information. Knowing this information is essential for managers to do their jobs (Carter 2007, p.1).

After several years of developing new perspective on the management concept this studies keep informed the users of the far-reaching contribution of leading scholars and academic researchers to management accounting literature. It covers the general and finance/accounting managers of servicing, merchandising and manufacturing registered entrepreneurs of Metro Manila, Philippines. Through this, readers will appreciate and recognize the adequate amount of valuable knowledge so as to unite the interest of the users and researchers, come across and fill up those short of management areas to meet the needs of today’s practicing managers.

Foster and Young (1997) revealed that managers identified customer satisfaction as the most important, followed by cost control and product quality for the managers responding out of the given important management areas through the one-page questionnaire handed out during their conferences and seminars. Then, Foster and Young (1997) matched the listing of the topics covered in the selected management accounting research journal reviewed and organized by Shield (1997). However, the study tends to examine accounting information for lower level managers. A case study of Anamco Ltd, Emene Enugu.

1.2       Statement of the Problem

There is the presence of a number of financial tools that assist managers in making good and effective decisions without committing financial disasters. These tools vary from industry to industry as what is proven suitable for one organization might not work for another. There are diverse information required for different purposes and most managers in different fields demand on the support of accounting information in their decision-making process. The study thus examines the major challenges affecting managers in their decision-making process as well as reviewing literature to buttress the impact accounting information has on businesses. The purpose of this study would provide the needed insight into accounting information and its impact on lower level managers especially the effects it has on decision making processes.

1.3       Objectives of the Study

The main objective of this study is to examine accounting information for lower level managers. A case study of Anamco Ltd, Emene Enugu

Specific objectives include to;

i.  Assess if accounting information have any effect on management decision.

ii.  Examine if there is any relationship between the perception of the employees and accounting information of the firm by lower-level managers.

iii.  Evaluate whether accounting information affect the company performance positively or negatively.

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ACCOUNTING INFORMATION FOR LOWER LEVEL MANAGERS.

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