THE ROLE OF MANAGEMENT ACCOUNTING IN ENHANCING DECISION MAKING AT METALS AND ENGINEERING CORPORATION (METEC)

Abstract

The purpose of this thesis is to understand how information derived from management accounting has an impact on decision making and therefore to better understand the relationship between management accounting information and decision making. This research explores the role of management accounting information in METEC. It also determines the extent of use of management accounting information in METEC, identifies the current strengths and weaknesses of management accounting system and lastly examines what measures needed to taken to improve management accounting information system. The survey was conducted with individuals working in METEC in industries under the supervision of METEC using self administered questionnaire and structured interviews with selected individuals. The results show that the prevailing management accounting system has many draw backs. Although the results indicate the use of management accounting information for decision making is very low and the management’s focus towards management accounting is below the required level. Further, the research result shows that the accounting policy is financial accounting oriented and not helpful in making management accounting reports. The findings of the research can be specifically informative for policy makers intent on developing management accounting skills among Ethiopian manufacturing firms. It will also promote interest among Ethiopian researchers as well as researchers to make the manufacturing sector a focus of interest in management accounting research.