THE ROLE OF ACCOUNTING INFORMATION IN PRODUCTION DECISION – MAKING (A CASE STUDY OF PHINOMAR NIGERIA LIMITED)
Managers make decision in order to choose from alternative course of action at a dynamic rate. This is done in order to achieve the set objectives of the
firms in which they manage. To make these decisions, accounting information are used as a necessary guide.
Manufacturing firms make use of accounting information which have been complied from source documents, records and statement in accordance with systems. These information gathered are used to make effective production decisions which would achieve the objectives of profit maximization cost minimization, Production efficiency, proper resources allocation etc.
This study is aimed at discovering the quantitative attributes to accounting information which makes it an effective tool in the production decision making and if the information generated is utilized in effective manner. Although, it is evident that decisions made in manufacturing firms are determined by
the accounting information to a varying extent. It is hoped that the recommendations will show the importance of accounting information and that managers
who make decision will comprehend it as a vital necessity in decision – making.
Manufacturing firms in the present economy have to contend with a lot of economic variables which have been aimed at consolidating the gains of
structure (adjustment programmes (S A P) since the first step introduced by SAP was self reliance, most manufacturing forms have had to consider the local
sourcing of raw materials instead of the dependency on imported materials for their production processes. Other factors such as inflation, taxation, instability
both economic and political, competition and market forces have caused a change in the out look of production.
In order to achieve their objectives the manufacturing firms have to make concise decision which would be relevant to the restricting of production
processes and in profit maximization so as to survive in our ever- changing economy and competitive environment. It is necessary to note that in making a
decisions, information is very essential especially that of accounting.
Information is the life line of any organization it is the general meaning that is assigned to data by means of the conditions used in their representation defined by Don. T Coster et al (1978).
Accounting information measures the progress of a commercial enterprise and is used in decision making for the selection of a singly course of action from several dissimilar and unrelated alternative.
Many production, marketing and government executives are stronger managers when they have solid accounting information backing decision making.
They are able to plan and control the operations of their organizations with which they set their objectives.
This study is about the role of accounting information in production decision – making. It seeks to enquire to how financial information can help the
production processes of firms through show and long term decision by management