MANAGEMENT ACCOUNTING AS AN INDISPENSABLE TOOL IN THE MANAGEMENT OF AN ORGANIZATION A CASE STUDY OF IMPOST ORGANIZATION

CHAPTER ONE

INTRODUCTION

Management is essentially concerned with planning and control of the resources of a firm, with a view to the attainment of set objectives. Planning is concerned with listing of goals and the formulation of a decision model for selecting means of achieving those goals. Control on the other hand, is the regulation of the activities within an organization so that they are in conformity with expectations established ion policies, plans and targets. Furthermore, crucial to the planning and control decisions of management, is information. Good decisions are based on information that is timely, relevant, properly presented, problem solving and forward looking. And here comes the challenge for the management Accountant to provide information for the planning and control of costs, volume and profit, for the purpose of attaining goals o management. Management Accounting, therefore, is concerned with the application of accounting and statistical techniques to the specific purpose of providing and interpreting information designed to assist management in its function of promoting maximum efficiency.

Management Accounting focuses on the internal environment of business, and provides information for such decisions of the firm as make or buy, replacement, pricing and cost reduction decisions. We should note, that today, life has become complex both for individuals and management could take decisions by “ bit “ or “miss” methods or by “ mere guess” so if any management does not plan on a systematic basis, it will be branded logic of little or no profits. Hence modern management, for its vital task of planning, should rely more on management accounting. Management Accounting has shied managerial emphasis form “ Knowing costs of production is the very reason that makes management Accounting to be referred to as “an indispensable tool in the management of an organization”. According to “ T. Lucey, (1988:1) management Accounting is primarily concerned with data gathering (from internal and external sources) analyzing, processing, interpreting and communicating the resulting information for use within the organization so that management can more effectively plan, make decisions and control operations.

HISTORICAL BACKGROUND OF INPOST

The origin of Nigerian postal service (NIPOST) dates back to 1851 when the British postmaster General established a postal (PWD), in Lagos public works department office, primarily to officials and traders and their home base ”Chimezie, 1985:19)2 This assertion was supported by Baba (1998:1)3 who postulated that the first letter ever carried from the first ever post office in Nigeria was in 1851 and was by foot and horses into the hinterland. The postal service in Nigeria was first re-structured in 1907 when from public works department of ministry of works to form post and telegraphs, the structure it maintained up till Nigeria became independent in 1960.