Project Materials

ACCOUNTING ACCOUNTING UNDERGRADUATE PROJECT TOPICS

AN EVALUATION OF MANAGEMENT ACCOUNTING TECHNIQUES ON ORGANIZATION DECISION MAKING PROCESS



Do You Have New or Fresh Topic? Send Us Your Topic


AN EVALUATION OF MANAGEMENT ACCOUNTING TECHNIQUES ON ORGANIZATION DECISION MAKING PROCESS

 

ABSTRACT

This project work attempts to assess the impact of management accounting techniques used by a manufacturing company (a case study of Cadbury Nigeria, PLC) on decision making. Traditional and modern management accounting techniques were identified, and the extent to which they were used was assessed. Make or buy decision, opportunity cost, relevant cost, incremental cost, just-in-time, inventory management, budgeting, standard costing (variance analysis), cost-volume-profit analysis, activity based costing, and linear programming are some of the techniques evaluated.

A well-structured questionnaire was used in the survey design. Respondents were chosen using a simple random sampling technique. A total of one hundred (100) Cadbury Plc. samples were collected.

Two hypotheses were developed and tested using Chi-Square analysis. As a result of the analysis, both hypotheses were rejected, and the two alternate hypotheses were accepted.

Based on the outcomes of the tested hypotheses, conclusions were drawn that the use of management accounting techniques by manufacturing firms influences the decision-making process and There is a significant relationship between the management accounting technique used in the organization’s decision-making process and the effective outcome of the decision.

Cadbury Nigeria Plc and the entire manufacturing companies were recommended.

TABLE OF MATERIALS

INTRODUCTION TO CHAPTER ONE

1.1 The Study’s Background

1.2 The Study’s Objectives

1.3 Description of the Issues

1.4 Research Proposals

1.5 Hypothesis Formulation

1.7 Importance of the Research

1.8 The Study’s Scope and Limitations

1.9 The Study’s Organization

1.10 Term Definitions

References

REVIEW OF LITERATURE IN CHAPTER TWO

2.1 The Beginning

2.2 Opportunity Price

2.2.1 The Importance of Opportunity Cost in Decision Making

2.3 Cost of Interest

2.3.1 An organization’s decision-making process consists of six steps.

2.3.2 Relevant Cost’s Utility in Organizational Decision Making

2.4 Cost of Increment

2.5 Analysis of Cost, Volume, and Profit

2.5.1 Use of the Cost Profit Volume Ratio in a Manufacturing Firm

2.5.2 The Cost Volume Profit Model in Action

2.6 Purchase or Make Decision

2.6.1 Factors Influencing a Buy or Make Decision

2.6.2 External Factors That May Influence a Manufacturer’s Decision to Purchase a Part

2.6.3 “Make” Analysis Elements

2.6.4 Aspect of the “Buy” Analysis

2.7 Costing Standardization (Variance Analysis)

2.7.1 Fundamental Variations

Techniques for Inventory Control

2.8.1 Inventory Control Objective

2.8.2 Inventory Control Factors to Consider in a Manufacturing Company

2.8.3 The Reasons Why Manufacturing Firms Keep Inventory

2.8.4 Factors Influencing Stock Investment Decisions

2.8.5 Inventory Management System in a Manufacturing Firm

2.9 Technique of Just – In – Time

2.10 Linear Programming Method

2.11 Costing Based on Activity

Reference

RESEARCH METHODOLOGY (CHAPTER THREE)

3.1.1 Introduction

3.2 Research Methodology

3.3 Information Source

3.4 The Study’s Population

3.5 Sampling and Sample Techniques

3.6 Instrument of Research

3.7 Reiteration of Hypotheses

3.8 Data Analysis Methodology

FOURTH CHAPTER: DATA PRESENTATION, ANALYSIS, AND INTERPRETATION

4.1.1 Introduction

4.2 Examining Respondent Bio-Data

4.3 Question Analysis from the Problem Area

4.4 Hypothesis Validation

4.4.1 Hypothesis One Test

4.4.2 Hypothesis Two Test

SUMMARY CONCLUSION AND RECOMMENDATIONS IN CHAPTER FIVE

5.1 Executive Summary

5.2 Final Thoughts

Recommendation (5.3)
5.4 Suggestions for Further Research

References

Appendix

CHAPITRE ONE

INTRODUCTION

1.1 THE STUDY’S BACKGROUND

Management accounting techniques have greatly aided various organizations, particularly manufacturing firms, in their decision-making processes. Techniques change over time for a variety of reasons, including changes in business and the societies in which they operate. What was a good management technique a year ago may be considered ineffective in decision making in the future.

Furthermore, changes in the external business environment have resulted in further advancements in management accounting tools and techniques. Traditional management accounting techniques had limitations, for example, absorption costing methods were discovered to be inappropriate in the modern environment.

Similarly, the suitability of standard costing in terms of its general philosophy and detailed operations has been heavily criticized. Traditional management accounting performance measures are thought to produce the wrong type of response.

However, the current techniques used by management in making decisions, such as make or buy, cost-volume-profit analysis, just-in-time, inventory management, budgeting, variance analysis, activity-based costing, linear programming, relevant cost, incremental cost, and opportunity cost, will be discussed in this write-up.

Choosing a course of action from among many alternatives is a simple definition of decision making. If there are no alternatives, no decision is necessary. A fundamental assumption is that the best decision involves the most revenue or the least amount of cost.

Management’s task, with the assistance of a management accountant, is to identify the best alternative. It is easy to recognize that decision making is the focal point of management accounting from the descriptive model of the basic features and assumptions of the management accounting perspective of business.

The concept of decision making is a complex one with a wealth of management literature to back it up. It is useful in management accounting to categorize decisions as follows:

Strategic and tactical considerations

Short-run and long-run effects

In any organization, whether a decision is good or acceptable is determined by management’s goals and objectives. As a result, setting the organization’s goals and objectives is a requirement for decision making. For example, management must decide on strategic objectives such as the company’s product line, pricing strategy, product quality, risk tolerance, and profit target. All of this is feasible if the appropriate technique(s) are used.

1.2 THE PROBLEM’S STATEMENT

The utility of management accounting techniques in decision making is more or less obvious. As a result, questions such as;

Is it true that management accounting techniques help organizations make profit-maximizing decisions?

What led to the company’s reliance on techniques considered to be cutting-edge?

Does the use of management accounting techniques in organizational decision-making improve performance?

Indeed, all of the preceding points would lead me to conduct a thorough investigation into the effectiveness of management accounting techniques on the decision-making process in the manufacturing industry (CADBURY NIGERIA PLC).

1.3 THE STUDY’S OBJECTIVES

The primary goal of this research is to:

Assess the impact of management accounting techniques on the decision-making process in your organization.

Determine the value of management accounting techniques to the manufacturing company when making decisions.

Using some variables, calculate how each of these techniques will influence the organization’s decision-making process if practically implemented.

Examine the advantages of employing management accounting techniques in organizational decision making.

1.4 QUESTIONS FOR RESEARCH

Research questions are interrogative statements that frequently arise during the course of study, or they can be defined as research objectives stated in an interrogative form. Research questions are intended to generate potential answers to various aspects of the research problem, and they should be stated clearly enough to serve as guides in the identification, collection, and analysis of relevant data. The study will be conducted in order to achieve the goal of this research study.

In order to reach a logical conclusion, try to provide answers to the following research questions.

i. Has using management accounting techniques in decision making greatly aided the company’s rapid growth?

Is there a significant relationship between the management accounting technique used in the organization’s decision-making process and the effective outcome of the decision?

iii. What are the yardsticks or parameters used to assess the effectiveness of the organization’s management accounting techniques?

iv. Are there any significant challenges to using accounting techniques in making their decision?

STATEMENT OF HYPOTHESES 1.5

To do this research work justice, the following hypotheses are proposed to serve as guides for my findings.

ONE HYPOTHESIS

Ho: The use of management accounting techniques by a manufacturing company has no effect on the decision-making process.

HI: The use of management accounting techniques by manufacturing firms influences decision making.

TWO HYPOTHESIS

Ho: There is no significant relationship between the management accounting technique used in an organization’s decision-making process and the effective outcome of the decision.

HI: There is a significant relationship between the management accounting technique used in an organization’s decision-making process and the effective outcome of the decision.

1.7 THE STUDY’S SIGNIFICANCE

The researcher is convinced that evaluating some of the techniques used by manufacturing company management in decision making will benefit both management accountants and manufacturing companies in general.

1.8 THE STUDY’S SCOPE AND LIMITATIONS

This study will assess some of the techniques used by manufacturing company(s) management in their decision-making processes.

Furthermore, the research intends to investigate key issues faced by industries when using management accounting techniques as decision-making tools.

Cadbury Nigeria Plc would be the only company studied.

This is due to constraints such as precision, cost, and time. As a result, I will limit myself to data collected at Cadbury Nigeria Plc (brief history), both primary and secondary data.

1.9 THE STUDY’S ORGANIZATION

This research will be broken down into three chapters.

The problem statement, which will state the problems of the study that prompted the researcher, will be included in Chapter One, which is the introduction. The objectives to be accomplished in carrying out this research work will also be listed here, as will the research questions.

The answers to these questions will be provided at the conclusion of the research project. Other sections of the chapter will cover the scope and limitations of the study, the significance of the study, the definition of terms, and finally the study’s historical background.

The second chapter, a literature review, looks at the existing literature on management accounting techniques.

The chapter will cover accounting history, definitions, theories, and concepts.

This section includes the research design, study population, data collection method, and data analysis method.

The fourth chapter presents data analysis. It includes data presentation, analysis, and hypothesis testing.

The fifth chapter is the summary, conclusion, and recommendation. This will be the final chapter, and it will summarize the research findings, draw conclusions from these findings, and make recommendations to staff and management in Nigerian organizations.

1.10 TERMS DEFINITION

The purpose of this study is to examine various concepts used in research work in order to make them understandable to those who are not in this field (Accounting/Finance).

JUST-IN-TIME: This is a production technique in which production occurs only when there is actual customer demand for the product.

RELEVANT COSTS: According to the Chartered Institute of Management, “relevant costs are the costs associated with a specific management decision.”

OPPORTUNITY COST: An opportunity cost is the amount of profit lost as a result of pursuing a specific course of action.

MARGINAL COSTING: Also referred to as direct costing or variable costing. It is a method of separating manufacturing costs into fixed and variable components and charging the product only for variable manufacturing costs. Direct material costs, direct labor costs, direct expenses (i.e. prime cost), and variable manufacturing overheads are all included.

ACTIVITY BASED COSTING: This is a costing technique that identifies activities in an organization and allocates the cost of each activity resource to all products and services based on their actual consumption. It converts more overhead costs into direct costs.

TECHNIQUE: A practical method, skill, or art that is applied to a specific task. It is a procedure used to complete a specific activity or task.

PROCESS: A sequence of independent and linked procedures that consume one or more resources (employee, energy, machines, money) at each stage to convert inputs (data, materials, parts, etc.) into outputs. These outputs are then used as inputs for the next step until a predetermined goal or end result is reached.

MANUFACTURING: Any industry that produces finished goods from raw materials through the use of manual labor or machines in a systematic manner with a division of labor.

Manufacturing, in a broader sense, is the large-scale fabrication or assembly of components into finished products. Manufacturing industries that produce aircraft, automobiles, chemicals, clothing, computers, electrical equipment, furniture, heavy machinery, refinery petroleum products, ships, steel, and tools are among the most important.

DECISION: Decision-making is not a distinct management function. In fact, decision-making is inextricably linked to the other functions of planning, coordinating, and controlling. All of these functions necessitate decision-making. For example, at the outset, management must make a critical decision regarding which of several strategies will be implemented.

Because of its long-term impact on the organization, such a decision is frequently referred to as a strategic decision. Furthermore, managers must make a plethora of minor tactical and operational decisions, all of which are critical to the organization’s success.

 

 

Do You Have New or Fresh Topic? Send Us Your Topic 

 

AN EVALUATION OF MANAGEMENT ACCOUNTING TECHNIQUES ON ORGANIZATION DECISION MAKING PROCESS
education repository

 

AN EVALUATION OF MANAGEMENT ACCOUNTING TECHNIQUES ON ORGANIZATION DECISION MAKING PROCESS

Not What You Were Looking For? Send Us Your Topic



INSTRUCTIONS AFTER PAYMENT

After making payment, kindly send the following:
  • 1.Your Full name
  • 2. Your Active Email Address
  • 3. Your Phone Number
  • 4. Amount Paid
  • 5. Project Topic
  • 6. Location you made payment from

» Send the above details to our email; [email protected] or to our support phone number; (+234) 0813 2546 417 . As soon as details are sent and payment is confirmed, your project will be delivered to you within minutes.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisements