Full Project-MANAGEMENT ACCOUNTING AS AN INDISPENSABLE TOOL IN THE MANAGEMENT OF AN ORGANIZATION A CASE STUDY OF INPOST ORGANIZATION
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ABSTRACT
This research topic” management Accounting as an indispensable tool in the management of an organization” helped us to research into how NIPOST organization has adapted management Accounting techniques to achieve increased efficiency in its postal services to the nation. This is because in recent time, modern management is interested in not only” knowing the cost of production” but also in “ Controlling the costs of production”.
Management Accounting is, therefore, primarily concerned with data gathering (from internal and external sources) analyzing, process, interpreting, and communicating the resulting information for use within the organization so that management can more effectively plan, make decisions and control operations.
This research work tried to find answers to the follow research questions.
1. How has management Accounting affected the achievement of NIPOST corporate goal?
2. Can NIPOST organization operate effectively without the service of management Accounting unit?
3. How has management Accounting affected the decision making process of NIPOST management?
4. Do you think that management Accounting unit has helped the management of NIOPST to attain Maximum efficiency in its planning process?
5. Do you think that management Accounting is an indispensable tool in the management of NIPOST organization?
In conducting this research work, the researcher, arranged his work in five chapters.Chapter one, dealt with the introduction of the topic, which include background of the problem under study, statement of the problem, objective and significance of the study.Chapter two took care of literature review. This chapter tried to define management accounting and its scope as regards to other branches of accounting. It also threw more light on the objective of management accounting, functions of management accounting, advantages of management accounting as well as the tools and techniques of management Accounting.
Furthermore, chapter three dealt on the research design and methodology adopted in this work. In conducting this research work, the researcher used both primary and secondary data. Primary data were collected through interviews, observations and the administration of questionnaire to interned respondents. Secondary data were also collected from textbooks, NIPOST Journals and Magazines. Chapter four treated the analysis and interpretation of data collected through the administration of questionnaire and a percentage analysis was used to interpreter the responses.
Also, the researcher used chi-square method for testing the hypothesis. Finally, chapter five highlighted on the research finding, recommendation and conclusion.
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 shifted 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.
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