MANAGERIAL ACCOUNTING AND DECISION MAKING: THE CASE OF SELECTED REAL ESTATE IN ADDIS ABABA

Abstract

The purpose of this study is to investigate the use of Managerial Accounting and Decision Making in Selected Real Estate in Addis Ababa.A descriptive research design is used, the study used both primary and secondary data. Data collected from 10 selected real estates in Addis Ababa. Data was measured using IBM SPSS/2021.Management accounting go through four stages, according to the International Federation of Accountants (IFAC): 1. cost determination and financial control 2. information for management planning and control 3. reducing resource waste in business processes and 4. creating value through the effective use of resources. In light of this, the current study is being done to find out what kinds of decision managers usually make, and if managers use management accounting information when making decisions and if this helps them to make right decision. The questionnaire distributed to the: finances, marketing, construction and office engineering. Even though stage 1 is used, but the study shows that stage 2 is mostly used. The results show that very little information from management accounting is used to make decisions, and management doesn't pay as much attention to management accounting as they should. This study recommends the creation and enhancement of awareness on the importance of Information for decision making. And it can assist policymakers and the government can use the study findings to build and broaden importance of managerial accounting in making decisions.