Impacts Of Accounting Information On Managements Decision-making Profit-oriented Vs Not-for-profit Organizations

In every organization decisions are regularly made as part of smoothening activities ofrnthe organization and to achieve their objectives. Decision makers use different types ofrninformation to make these valuable decisions. Accounting information is one of thisrninformation that managers and other concerned bodies use when they make decisions.rnThe main purpose of this study is to assess the impact of accounting information inrnmanagement decision making in both profit-oriented and not-for-profit organizations.rnGeneral Managers, other higher level manager and accountants were included to gatherrnthe necessary data pertaining to the assessment of the impact of accounting information.rnTo elicit the impact of accounting information on management decision making,rnquestionnaires were distributed to General Managers, Financial Managers, MarketingrnManagers, Production Managers and Accountants who are thought to be influenced byrnthe information. All of them were selected by personal judgment of the research.rnThe results of the study showed that majority of managers are influenced by thernaccounting information to the relevant range. In addition, the dedication of managers inrnincorporating accounting information in their decision making was found to be weak.rnThe reason for this fact is that managers are not as such comfortable to make decisionsrnwith the type of information being produced. They have doubts on the competency ofrnaccountants. It is also found that accounting information is widely used in businessrnorganizations especially in manufacturing organization as compared to not-for-profitrnorganizations.rnIn response of these findings, the researcher forwarded possible recommendations thatrnwill enhance managers’ use of accounting information

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