THE ROLE OF ACCOUNTING INFORMATION ON MANAGEMENT DECISION-MAKING OF SUNSHINE CONSTRUCTION PLC.

Abstract

In all organization decisions are regularly made as part of smoothening activities of the organization and to achieve their objectives. Decision makers use different types of information to make these valuable decisions. Accounting information is one of this information that managers and other concerned bodies use when they make decisions. The main purpose of this study is to assess the role of accounting information in management decision making in Sunshine Construction Plc. The study adopted descriptive survey design. The target population for this study was 42 which contains 16 managers and 26 accountants of Sunshine Construction Plc., Single stage sampling procedure was applied to come up sample size. Data was collected using questionnaire sand interviews and was analyzed using descriptive analysis and results was presented in form of tables and figures. To elicit the role of accounting information on management decision making, questionnaires were distributed to General Manager, Financial Manager, Human Resource Manager, Project Managers and Accountants who are thought to be influenced by the information. All of them were selected by personal judgment of the research. The results of the study showed that majority of managers are influenced by the accounting information to the relevant range. In addition, the dedication of managers in incorporating accounting information in their decision making was found to be weak. The reason for this fact is that managers are not as such comfortable to make decisions with the type of information being produced. They have doubts on the competency of accountants. In response of these findings, the researcher forwarded possible recommendations that will enhance managers’ use of accounting information.