Accounting Information System And Its Impact In Management Decision Making

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
An accounting information system (AIS) is a system of collection, storage
and processing of financial and accounting data that is useful for decision makers.
An accounting information system is generally a computer based method for
tracking accounting activities in conjunction with information technology
resources. The resulting statistical reports can be used internally by management
or externally by other interested parties including investors, creditors and tax
authorities.
Accounting is the language of business as it is the basic tool for recording,
reporting and evaluating economic events and transactions that affect business
enterprises. It processes all documents of a business financial performance from
payroll, cost, capital expenditure, and other obligation to sale revenue and
o e s e uity. It p o ides fi a ial i fo atio a out o e s usi ess to the
internal and external users, such as managers, investors and others. It is
sometimes referred to as a means to an end, with the ending been the decision
that is helped by the availability of accounting information.
Management is the act of getting things done through people and materials
available, management can also be seen as the act of working particularly through
people for their achievement for the broad goals of an organizations (Ejiofor

2007). In trying to achieve this goals, the managers has to map out strategies to
find out the accounting information most suitable.
Management accounting uses both financial and non-financial information
and is generally intended for the use of internal users who use the information to
make decision that helps achieve the goals and objectives of the organization.
Financial information used by management accountant includes sale growth,
profits, return on capital employed and market shares, non financial information
i lude p odu tio ualities, pe fo a e of o peti g p odu t a d usto e s
loyalty. (Melissa 2007).
Decision making is the process of choosing alternatives courses of action
using cognitive processes. Making decision is necessary when there is no one
clear course of action to follows. Accounting systems also provides check for the
validity through the process of auditing and accountability (Gray et Al 1996).
Effective and efficient accounting information plays a central role in management
decision making.
1.2 Statement of the Problem
Accounting tools play a vital role in the business decision making process.
Management accounting consists of a set of tools that have been proven to be
useful in making decision involving cost data, price and profit. The costing system
provides to the obtainable knowledge of costs and it builds the basis for

numerous decision like as determining prices, estimating profits. Profitability is
used especially for making decision. A tool that proves to be very effective in an
organization, however it may fail in another organization. Different information is
required for different purposes, so the organization must focus on different
accounting tools to support the decision making process.
Generally, the use of accounting information will become critical factor in
changing competitive environment for an institution to effectively and efficiently
make decision. The major problem discovered for management is the
identification of fundamental concept of accounting information to be
implemented by each sectors (Institutions, Secondary School and Organization)
which can affect the secondary school positively or negatively and therefore,
there is a problem of a particular concept of accounting information used by the
secondary school affect the management decision negatively, and this helps us to
recognize the reason for the negative effect which can be as a result of adopting
many accounting information or uncertified accountant giving wrong information
to the secondary school, which can lead to wrong decision to the progress of such
school. The purpose is to see the need for account information to any institution
and how it aids management decision making.
1.3 Purpose of the Study.
The general objective of this study is to examine the impact of accounting
information system on the quality of management decision making in secondary
school.

Therefore, the other specific objectives of this project are to:
 Examine the effect of accounting information system on management
decision making
 Examine the relationship between perception of employees and accounting
information.
 Examine the elements that affect accounting information within the
secondary school.
 To examine the effect of accounting information on the secondary school
performance. (planning and controlling).
1.4 Significance of the Study
The accounting information system has a great role in many decisions.
Therefore, the recognition by planning, controlling and decision making of these
systems in secondary schools and its relationship with technology will contribute
to correction of any defect, if any, especially if caused by lack of access to
available technology, thus it helps in planning, controlling and making decision
more rational in the light of fierce competition in secondary schools.
1.5 Research Questions
The study was guided by the following research questions
 Does accounting information have any effect on management decision
making?

 Is there any relationship between the perception of the employees and
accounting information of the secondary school?
 What are the elements that affect adequate accounting information
within the secondary school?
 Does accounting information affect the secondary school decision
making positively or negatively?
1.6 Research Hypotheses
For the purpose of analyzing the data, the following hypotheses are drawn:
Ho1: There is no significant relationship between Accounting information System
and management decision making.
Ho2: There is no significant relationship between the perception of employees and
accounting information.
Ho3: There is no significant relationship between the rate poverty and accounting
information system.
1.7 Scope and Delimitation of the Study
This research will be carried out in some selected secondary school in Ilorin
West Local Government Area of Kwara State where data gathering, storage,
information retrieval and report representation of the bursary department of
each secondary school will be the researcher focus.
1.8 Limitation of the Study
The lapses of this study are the major constraints which prevent the
extensive research; such constraints are the lack of sufficient time, lack of

sufficient finance, non-availability of relevant data and uncooperative attitude of
the respondents.
1.9 Definitions of Term
ACCOUNTING: -Accounting is a system whereby economic events of a business
entity are reported. The committee on technology of the American institution of
certified public accountants stated that, "accounting is the art of recording
classifying, and summarizing in a significant manner, and in terms money,
transaction and events which are, in part, at east, of a financial character and
interpreting the result there of". The committee to prepare a statement of basic
accounting theory of the American accounting association describes accounting as
"the process of identifying, measuring and communicating economic information
to permit informed judgments and decision by users of the information".
DATA: Data is the term given to basic fact about the activities of a business. For
example the number of hours worked by an employee, the number of goods
delivered and the quantity of materials issued from store are all data.
INFORMATION: Information is the processed data. Information is data
assembled into useful form. Therefore, information consists of data but not all
data convey meaningful information. In this report however, data and
information shall be inter changeably used. Therefore, any data or information
obtained from or created in an accounting system of a firm are accounting
information whether contain in a financial statement or special report.

SYSTEM: A system can be described as an assemblage of element that interact
and function to attain a common good. A system can be seen as all that makes up
a whole.
SCHOOL: A place where teaching and learning are taken place under the
supervision of the facilitators.
RESEARCHER: The person on an advance study of a subject, so as to know the fats
MANAGEMENT: It is an act of getting things done through people and available
materials.
1.10 Chapter Summary
This chapter deals with introduction aspect and shed more light on the
meaning of accounting information system and how it relates to management
decision making. The chapter also explains the importance of accounting
information system to the management of any organization. In addition,
accounting information system provides relevant information for the
management in order to make decision for future occurrence
CHAPTER TWO
REVIEW OF RELEVANT LITERATURE
2.0 Introduction

Sikula (2006) asserts that: All accounts have to receive some form of
information. Even a skilled man joining an organization or institution has to be
shown some aspects of his information. He may have to be instructed on how to
pass information on the procedures relating to accounting system, cost
accounting and other routines.
Ducasses (2005) said Information system for some specific operators, there
is also a need to educate them so that they can become more skilled in a
particular occupation in order to have a wider or general knowledge of
techniques likely to be required in the future.
When training an Accountant in the basis of accounting information it is
recessing to broaden the outlook, rather than train them in a particular
information skill. The differences in approach at various accounting levels should
be dared from a study of other part of information.
Some accounting experts leave the bulk of information system to their
rivals. They then pay attractive wages and salaries and recruit accounting expert
who have already received all formal education and accounting. However, this
seems to be a very short - sighted policy. How morale and loyalty are not obtain
merely by paying high overages.
Furthermore, Sikula (2006) said with a proper accounting information
system there is more hope of obtaining the desired quantities and qualities of an
accounting personnel.

The research which is the accounting information system and its impact on
the quality of management decision in Nigeria Secondary School is carried out to
measure how and what really accounting information can contribute to the
quality of management decision in secondary schools.
2.1 Accounting Training Method
Boone and Kurtz (2007) assert that: people learn by seeing, listening and
importantly, by doing".
Accounting training programs therefore, normally quarries employees to
learn through instruction, study and actual job experience. What employees need
to know minus the skills, knowledge, positive habits and attitudes the lady
possess, determines which must be taught.
On the Job Training:- A good number of employee learn a basic skill of
performing job while actually doing them. This is true particularly of free
employee without previous experience recruited directly from Colleges and
University.
Also, it is called training by doing, on-the job-training milieus assignment
new employees to new job at offices, shop houses, laboratories e.t.c, where they
are under training and instructed by experienced and qualified instructors and
supervisor with competent instruction the method of training of large employees.
Accounting Management Training: - It is designed to ensure the
continuous success of management responsibility in the school. This accounting
management training serves to develop the knowledge, skill and attitude of

Accountant through instruction, demonstration practice and planned
experience so that both the present and the future need of the business can be
met both within and outside the institution.
Accounting Demonstration Method: - This entails the process by which the
instruction actually show the traces of how to do something, for example, an
accountant could show sales trace of how to deal with a potential customer and
how to "explain the performance feature of his merchandise soldiers also receive
much of their training by means of demonstration.
Simulation Method: - Involves duplication of actual condition encountered
on the job with this action taken in simulation exercise closely duplicated real job
conditioned.
It is therefore very useful in situation where on the job practice could result
in serious injury, costly error or the destruction of valuable property.
2.2 How to Measure Accounting Training Effectiveness
Berkley (2005) said: evaluation can do more than help in providing your
programme well. With proper implementation, which is hard work, it can also
grate that at least; some of what you teach will be used. Some evaluation are
easier than the either if you are going to do skill training in typing, running
printing press or computer coding is securable to gather as much data as possible
on the past performance of people who learned the jobs there were on training
programme find out such things as:

 The length of time it took individual to become 25%, 50%, and 100%
productive on the job.
 The productivity level (volume of work produced) at various stages during
this learning time.
 The quality level, again at the different stages of learning.
2.3 Evaluation of Accounting Training
William and Davies (1985) also consent to the evaluation of accounting
training of the control process of training. Evaluation method aims to obtain
feedback about the results or out puts of training and to use this feedback to
assess the value of training, evaluation firstly concerned with setting appropriate
standard of training.
2.4 Relevant Feedback Data About Accounting Trainning
According to 'Hamblin et-al (1970). Hamblin takes the view that accounting
evaluation can take place at a number of different levels, ranging from immediate
to long-term result. Each level requires a different accounting evaluation strategy
as indicated below.
Result of Training Evaluation stratagem
Training Training Centered

Reactions Reaction centered
Learning Learning centered
Change in job behavior Job related
Changes in the institution Institution
Impact on institutional goals Cost benefit
The contribution of Ward teal has been to produce a some what different
framework for evaluating accounting training. This takes major dimension which
are as follows:-
 Context accounting evaluation.
 Input accounting evaluation.
 Reaction accounting evaluation.
 Outcome accounting evaluation.
2.5 Transactional Accounting Analysis
Berne (1962) assist that "management development seek to help people
have better understanding of other people behaviors especially in interpersonal
communications and effectiveness" he was credited with the basic theory of
transactional accounting analysis base on the concept of psychotherapy.

Other notable contributors to this field include Thomas Harris, Manual
names Dorothy Jongeward(1967). The next step in the accounting training and
development process is determining the impact of the accounting programme,
which is evaluation.
ACCOUNTING TRANING AND DEVELOPMENT IN PERSPECTIVE
Accounting training should be viewed differently from accounting
education. Education is thought of as being a scope that develops the individual, it
involves the formal acquisition of knowledge oriented in college or University
whilst training is vocational oriented and occur in a work institution.
Accounting training can be argued as a more immediate utilization purpose
than accounting education.
Beach (2003) was of the view, however, that there exists a kind of inter-
relationship between both. He absents that apart from the fact that training and
education frequently occur at the same time, some school programme are quite
vocational, immediately practical and job oriented (reminiscent of trading
programme) and on the other Land, some executive development programmers
in institution cover solely fundamental principles which are broad in scope,
philosophical and could as well go for formal education. Therefore, accounting
training is a vital and necessary actives in all instructions, it plays a credible role in
determine the efficiency of tertiary instating in Nigeria
Accounting information system (AIS) is vital to all organizations (Borthick
and clark, 1990; Curts, 1995; Rahman et al, 1988; Wilkinson, 1993; Wilkinson et al;

2000) and perhaps, every organization either profit or non profit oriented need to
maintain the accounting information system (AIS) (Wilkinson, 2000: 3-4). To
ette u de sta d the te A ou ti g i fo atio syste ; the three words
constitute accounting information system (AIS) would be elaborate separately.
Firstly, literature documented that accounting could be identified into three
o po e ts, a ely i fo atio syste , la guage, ; 6-7). Secondly,
information is a valuable data processing that provides a basis for making
decisions, taking action and fulfilling legal obligation, system is an integrated
entity, Accounting information systems (AIS) and knowledge Management: A case
study 37 where the framework the three words Accounting information System
indicate an integrated framework within an entity (such a business firm) that
employs physical resources (i.e; material supplies, personnel, equipment, funds)
to transform economic data into financial information for; (1) conducting the
fi s ope atio s a d a ti ities, a d p o idi g i fo atio o e i g the
entity to a variety of interested users. Indeed, the combination or interaction
between human, technology and techniques would permit an organization to
administer its knowledge effectively (Bhatt, 2001; Thomas and kleiner, 1995).
Currently, the world and human life has been transformed from
information age to a knowledge age (Syed – ikhsan and Rowland, 2004: 238;
Thomas and kleiner, 1995: 22), and knowledge has been recognized as the most
valuable asset. In fact, knowledge is not impersonal like money and does not
reside in a book, a data bank or a software program (Drucker, 1993). Drucker

believed that knowledge is always embodied in a person, taught and learned by a
person, used or misused by a person. As the world moving into knowledge ear,
this paper will examine how ZBMS Sdn. Bhd, manages its knowledge in order to
remain competitive amongst the construction industry. Probst, Raub & Romhardt
(1999, P.1) stressed that companies must learn to manage their intellectual assets
i.e. k o ledge i o de to su i e a d o pete i the k o ledge so iety .
Indeed, knowledge management is concerned with the exploitation and
de elop e t of the k o ledge assets Da e po t et al . This pape seeks to
examine the Accounting information systems (AIS) used by a Malaysian company
named ZBMS Sdn. Bhd. The paper will highlight the users of the system and the
way information adds value to the organization. Also, the paper will investigate
the way knowledge is managed through the process of creating, storing
disseminating and applying and how information system plays an important role
th oughout the p o ess a d the AI“ o t i utio i the o ga izatio s st ategi
role. The remainder of the paper is organized as follows. The following section
describes the background of ZBMS and the use of accounting information
systems. The third section provides research findings on accounting information
systems employed by ZBMS. The fourth section offer suggestions for future
research. The final section concludes the paper and outlines the limitations of the
study.
THE USE OF ACCOUNTING INFORMATION SYSTEMS IN ZBMS

ZBMS is a private limited company registered in kuala Lumpur. Malaysia
that operate in construction industry, where the main activities ranging from
construction of information, building, power, waste water to property
development as well as engineering, procurement, construction and
commissioning (EPCC) in the oil & gas sector. The company used automated AIS
k o as Co t a t Plus – Fi a ial & P oje t A ou ti g pa kage i thei fi a e
Development, which was commercially developed by a private company (ZYXW).
Contract Plus is a fully integrated business solution designed specifically for
companies in the engineering and construction industry. The software will
generate financial data to be analysed by the accountants and subsequently used
by top level of management for strategic decision making, thus, these managers
could identify future opportunities and limitations face by the company and
industry (McCarthy, Minichiello and Curran, 1987; 243-244).
FINDINGS
As mentioned earlier in section 2, ZBMS is a company that operate a
construction industry. The industry was identified as one of the most difficult to
understand due to its complexity mixture of people, plant, materials, locations,
technology, knowledge data Accounting Information System (AIS) and knowledge
Management: A case study Management; data control summarized the
transformation process of AIS.
USUAGE OF INFORMATION WITHIN AIS

The construction projects undertaken by the company are divided
according to the type of construction activities that comprises of five divisions,
namely infrastructure, building, power, waste water and oil and gas, where each
project is treated as a separate company. The number of projects undertaken by
each division depends on the contracts being awarded to the company. As
indicated by figure 1-2, the sources ;of data originated from external parties such
as client, subcontractors and suppliers. The project Accountants will work closely
with the Quantity Surveyors to come out with the appropriate information as
illustrated below;
Client - The lie t s Qua tity “u eyo s Q“s ill e aluate o k i
progress (WIP) and come out with percentage of WIP to be agreed by both
parties. Once agreed, progress billing certificates (PBC) will e issued y Clie t s
QSs, which a copy of it will be sent to head office for data processing.
Subcontractors – The )BM“ s Q“s ill e aluate su o t a to s WIP at site
and come out with percentage of WIP to be agreed by both parties. Once agreed,
Sub o t a to P og ess Ce tifi ate “PC ill e issued y )BM“ s Q“s a d e ified
y )BM“ s p oje t a age s, hi h a opy of it ill e se t to head offi e fo data
processing.
Suppliers – QSs and Project Accountants will ensure that the materials and
machineries are delivered in good condition at construction of site before delivery
o de s a e a epted. The deli e y o de s ill e atta hed to supplie s i oi e a d
sent to Head Office for processing of the law as well as the design and valuation

of work done, which are much subjectivity (capon, 1990;1). However, these
challenges are under control with the advert of technology such as software
development that allows systematic data processing. Therefore, it is important to
understand the information flow in ZBMS in order to appreciate the usage of
information within the organization as shown in figure 1-1 below.
USERS OF AIS
As shown above, the finance personnel that reside ;at site project office (or
called Project Accountants) and head office such as the Financial Accountants,
Management Accountants ;and Finance Manager are the internal users of the
system. Also, the management team that consists of finance General Managers,
Chief operating Officer, Managing Director and Board of Directors are among the
internal users of the system. On the other hand, the external users consist ;of
government agency (i.e inland Revenue), external auditors and creditors. Indeed,
wide variety of people within and outside the organization uses accounting
information for decision-making (Rahman and Halladay, 1988, Renau and
grabski, 1987).
FUNCTION OF ACCOUNTING INFORMATION SYSTEM
The main function of accounting information system (AIS) is to assign
quantitative value of the past, present and future economics events. At ZBMS, AIS
through its computerized accounting system (i.e ZYXW – Contract Plus) produces

the financial statements namely income statements, balance sheets and cash flow
statement. The information during input, processing and output stages that will
be used by a wide variety of users such as internal and external users (see for
example Wilkinson, 2000:10-11). Wilkinson noted that an effective accounting
information system (AIS) performs several key functions through out these three
stages such as data collection, data maintenance,

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
The research is targeted at assessing the impact of of accounting
information system on management quality in decision making among some
selected secondary school teachers in Ilorin West Local Government. This chapter
focuses on the method through which data and information required for the
study were obtained.
3.2 Research Design
Research design in the study is purely descriptive survey method. A
descriptive surveys method of research involves a careful observation of the
existing attributes of a particular event and gives pictures of a population
3.3 Population
The population used in this research work was teachers and management
of selected secondary school in Ilorin West Local Government Area of Kwara State
The researcher focused on a number of both management staff and
teacher of the selected secondary school as our population sample.
One way in which a representation sample may be obtained is by a process
called random sampling. This is a process by which each number of the population
has an equal chance of being included in the sample.
In planning for sample to use, the researcher has to deduce on the sample
units, sample size and sample procedure to use.

3.4 Sample and Sampling Techniques
From the population, a sample size of thirty (60) was obtained through the
simple random selection technique.
3.5 Research Instrument
The instrument used to gather information in this study is a self designed
questionnaire. The questionnaire consists of two sections. Section A elicits
demographic information like gender, working experience. While section B
contains structured items relating to the research questions that necessitated this
research.
3.6 Methods of Data Collection
The method used in the collection of data was through questionnaire
survey, oral interview, journals, newspaper and relevant literature review.
3.7 Data Analysis
The research instrument used in this project is the questionnaire.
Questionnaire is mostly preferred among other survey instruments because it
does not merely ask the respondent for information in the appropriate contact
but in the proper unit of measure so that the researcher will be able to explain or
predict the specific phenomenon set out to investigate.
The questionnaire is divided into two section, A and B, section A of the
questionnaire deals with bio-data of the respondents i.e. Age, Marital status,
.Experience, Qualification, Rank or official status e.g. While section B deals with
the research questions.

3.8 Validity and Reliability of the Instrument
Validity is the extent to which an instrument measures what it is supposed
to measure and performs as it is designed to perform. The researcher used
content validity to measure the accuracy of the instrument, because the
researcher accurately assesses what he intends to know.
Reliability is the extent to which instrument consistently measure what is
intends to measure. The research used tests re-test methods in testing the
reliability of the instrument.
3.9 Statistical Tools used in analyzing the Data
Statistical tools use in analyzing the data. The frequency distribution of
response and percentage were used to analyze the data collected from the
questionnaire.
Chi - Square test is used as a statistical tool to test the hypothesis, the chi-
square test always involve compression of observed sample frequencies entered
in defined data categories with the expected frequencies for this categories based
on the assumption that the null hypothesis is true.
The formula for chi-square is.
= ∑(O - E)2
E
Where
X2
= Chi-square value
O = Observed frequency/actual frequencies.

E = Expected frequencies/theoretical frequencies
The decision rule is that if the table value of X2
is less than the critical value
of Ttab, the hypothesis is accepted and if otherwise the hypothesis is rejected.

CHAPTER FOUR
4.1 PRESENTATION AND ANALYSIS OF DATA
It has been stated in chapter three of this project work that two sources of
data was used viz; primary and secondary sources. In this chapter, those data
collected will be presented and analyzed. Both sources of data are worth
analyzing but only the primary source shall be presented which comprises of
personal interview and questionnaire forms. Each of these data will be broken
down and examined vividly with a view to drawing conclusion and
recommendations at the next chapter of this project.
4.2 ANALYSIS OF DATA COLLECTED
The numbers of questionnaire sent out were sixty (60) Fifty Six (56) were
returned and duly completed. This gives the percentage rate of 93%. The
questionnaire was based on Accounting Information System and its impact on
management quality decision making in secondary school in Nigeria. The
questionnaires sent out to workers (teaching staff and management) were
divided into two main sections. Section A consists of personal data of workers.
While section B deals with the questions in relation to the research work.
SECTION A: PERSONAL DATA OF RESPONDENT
Table 1: Sex
VARIABLE CLASSIFICATION RESPONDENT %
SEX: MALE 32 69.6

FEMALE 24 30.4
TOTAL 56 100
Source: Survey 2015
Interpretation: From the table above, it was discovered that the number of
male staffs out weights that of the female, the percentage rate of the male is
69.6% while that of the female reads 30.4%.
Table 2: Age Distribution
AGE 21 -30 18 32
31 -40 22 39
41 - above 16 29
TOTAL 56 100
Source: Survey 2015
Interpretation: Above table reveals that the ages of the respondent fall
majorly between 31 and 40 (i.e. 39%). This is true considering the fact that most
of them are married. The respondents whose ages fall between 21-30 come next
(32%). The percentage rates of the respondents whose ages fall between 41 and
above are 29%.
Table 3: Official Status of the Respondents
VARIABLE CLASSIFICATION RESPONDENTS %
POSITION School Management i.e 12 21

principal, vice principal
bursar etc.
Accounting teacher 40 71
Other teaching staff 04 8
TOTAL 56 100
Source: Survey 2015
Interpretation: Out of the 56 respondents, only 12 were management
members (21%) followed by accounting teachers 40 (71%) and other teaching
staff had the lowest population of 04 representing 8% of the sample size.
Table 4: Marital Status
MARITAL SINGLE 08 14
MARRIED 48 86
DIVORCE - -
TOTAL 56 100
Interpretation: From the table above, it was shown that out of the
respondents contacted, majority of them fall into the category of married (i.e the
percentage rate for "married" is 86%) while the percentage rate of the singe ones
is 14%. There was no divorce among them.
Table 5: Educational Qualification
VARIABLES RESPONDENTS %

SSCE - -
OND/NCE 14 25
HND/B.Sc/BA/B.Ed 31 55
M.Sc/M.Ed/MA 11 20
Total 56 100
Source: Data Survey, 2015
From the above table, the results shows that most of the respondents have
First Degree which represents (55%) of the total respondents, 14 were awarded
NCE/OND, which represents (25%) of the respondents while 11 respondents
representing (20%) of the total respondents have the highest qualification of
M.Sc/M.Ed/MA.
Table 6: Working Experience
VARIABLES RESPONDENTS %
BELOW 5 YRS 15 27
5-10 YRS ' 12 21
10 –Above 29 52
Total 56 100
Source: Data Survey 2015
Interpretation: From the table above, it is revealed that 29 of the
respondents have spent 10 years and above in the organization representing 52%
while only 15 and 12 respondents have spent nothing less than 5 years and 5-10
years respectively in the organization

SECTION B RESEARCH QUESTIONS
Table 7: Accounting Information System has impact on the quality of
management decision making in the Nigeria secondary school.
OPTION FREQUENCIES PERCENTAGE (%)
Strongly Agree 35 64
Agree 10 17
Strongly Disagree 4 7
Disagree 7 12
Total 56 100
From the table above majorly of the respondents agree that accounting
information system have impact on quality of management decision making as 35
respondents representing 64% strongly agree with the motion, 10 respondents
representing 17% agree with the assertion while 4 and 7 respondents
representing 7% and 12% strongly disagreed and disagreed respectively.
TABLE 8: Accounting Information System increase the rate of economy
development in Nigeria

Agree 12 21
Disagree 5 9
Total 56 100
The above table indicates that accounting information system increase the
rate of economy development in Nigeria as the higher percentage strongly agreed
with the statement.
TABLE 9: Accounting Information system enhances the quality of management
decision in Nigeria secondary schools.
Agree 18 32
Disagree 7 13
Total 56 100
The table above illustrates that 50% of the respondents strongly agree and
32% agreed that accounting information system enhances the quality of
management decision in Nigeria secondary schools. While 5% and 13% of the
respondents strongly disagree and disagreed with the statement respectively.
TABLE 10: Accounting Information System uses the information section to fight
against poverty in Nigeria.

Agree 20 37
Disagree 12 21
Total 56 100
The table above shows that 13 and 20 of the respondent agreed that
accounting information system has contributed to fight against poverty in Nigeria
while 11 and 20 respondents disagreed with the assertion.
TABLE 11: Accounting information system helps management to make informed
economic decision.
Strongly Agree 6 11
Agree 33 59
Disagree 15 26
Total 56 100
The above table revealed that accounting information system helps
management to make informed economic decision as the highest number of the
respondents agree with the statement. .
TABLE 12: Employees are not convinced by the method of Accounting
Information System

Strongly Agree 8 14
Agree 25 45
Disagree 20 36
Total 56 100
This table shows that 14% and 45% strongly agreed and agreed that
Employees are not convinced by the method of Accounting Information System
respectively while others disagreed with it.
4.3 HYPOTHESIS TESTING
Having analyzed all the relevant data, the next step now is to test the
prepared research hypothesis.
The research hypotheses will be tested using Chi-square and the followings
are the property of the chi-square
x2
= (O - E)2
E
Where;
O. = Observed frequencies/actual frequencies
E = Expected frequencies/theoretical frequencies
X2
= Chi square value
X-Cal = Chi-square calculated
T-Tab = Table Value

DECISION RULES
The decision rule is that if the value of Xcal is less than the Table value,
Accept null hypothesis if otherwise reject the null hypothesis and accept
alternative hypothesis..
HYPOTHESIS I
Ho1: There is no relationship difference between Accounting information System
and management decision making.
TABLE 13: Observed and Expected frequencies data
Respondents Strongly
Agree
Agree Strongly
Disagree
Disagree Total
Impact on secondary
school
35 (33) 10 (14.7) 4 (3.7) 7 (4.7) 56
Economy Development 28 (30) 18 (13.3) 3 (3.3) 2 (4.3) 51
Total 63 28 7 9 107
X2
= (O-E)2
E
TABLE 14: Chi-Square Table
O E O-E (O-E)2
E
35 33 2 0.121

10 14.7 -4.7 1.503
4 3.7 0.3 0.024
7 4.7 2.3 1.126
28 30 -2 0.133
18 13.3 4.7 1.661
3 3.3 -0.3 0.027
2 4.3 -2.3 1.230
5.825
Degree of freedom = (m-1) (n-1) so in this case (4-1) (2-1) = 3 x 1 = 3
Level of significance 5%
X2
= 5.828
Ttab = 0.352
DECISION:
Reject the null hypothesis and accept alternative hypothesis since the X2
calculated is greater down the Table value at 5% level of significance. i.e There is
significant relationship between accounting information system and management
decision making
HYPOTHESIS II
Ho2: There is no significant relationship between the perception of employees and
accounting information.

Agree
Agree Strongly
Disagree
Disagree Total
Employee Perceptions 8 (7) 25 (29) 3 (2.5) 20 (17.5) 56
Economic Decisions 6 (7) 33 (29) 2 (2.5) 15 (17.5) 56
Total 14 58 5 35 112
X2
= (O-E)2
E
O E O-E (O-E)2
E
8 7 1 0.143
25 29 -4 0.552
3 2.5 0.5 0.1
20 17.5 2.5 0.357
6 7 -1 0.167
33 29 4 0.414
2 2.5 -0.5 0.1
15 17.5 -2.5 0.357

2.19
X2
= 2.19
Ttab = 0.352
DECISION:
Reject the null hypothesis, which says there is no significant relationship
between the perception of employees and accounting information. Since the X2
calculated is greater down the Table value at 5% level of significance.
HYPOTHESIS III
Ho3: There is no significant relationship between poverty and accounting
information system.
Agree
Agree Strongly
Disagree
Disagree Total
Reduce Poverty 13 (25.5) 20 (16) 11 (6) 12 (8.5) 56
Economic Development 38 (25.5) 12 (16) 1 (6) 5 (8.5) 56
Total 51 32 12 17 112

X2
= (O-E)2
E
O E O-E (O-E)2
E
13 25.5 -12.5 6.13
20 16 4 0.75
11 6 5 4.17
12 8.5 3.5 1.44
38 25.5 12.5 6.13
12 16 -4 0.75
1 6 -5 4.17
5 8.5 -3.5 1.44
24.98
X2
= 24.98
Ttab = 0.352
DECISION:

Reject the null hypothesis and accept alternative hypothesis on the grand
that X2
calculated is greater down the Table value at 5% level of significance. i. e
There is no significant relationship between poverty and accounting information
system.
4.4 DISCUSSION
From the hypothesis tested so far, one can concludes that accounting
information has significant effect/roles on management decision agrees with the
work of Anil Keimer (2008) who found that accounting information obviate the
necessity of remembering various transactions.
Hypothesis one confirms that there is significant relationship between
accounting information and management decision making in secondary school,
thus accounting information system cannot be over-emphasized.
The testing of hypothesis two which confirms the significant relationship
between the perception of employees and the accounting information falls in line
with the findings of Douglas (2007) who postulated that employees and their
representatives are interested in information about the stability and profitability
of their employers and also interested in the information which enable them to
access the ability of the enterprises to provide remuneration, retirement benefit
and employment opportunities.
The result of the study based on the hypothesis three found a significant
relationship between poverty and accounting information. This was collaborated
by the finding of Pat (2002) who posited that reducing poverty is very important

in the nations and that accounting information provided by the experts can help
to reduced the rate of poverty in country.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY
Accounting is as old as the work business itself resuming a new dimension
as changes in business world are taking place.
Though accounting is not totally conceived as an information system by
some people, it will continue to be the major information system to be relied
upon by management of any organization and schools in its decision making
process. Accounting has gone beyond the conventional score keeping function. It
has extended to attention of directing and problem solving, which are to aid
management in its function of planning, controlling and decision making.
Accounting information is to aid management in making relevant decision making
and assist in hard situation. Apart form this, the information should timely
accurate concise and objective. There has been a transitional stage from manual
data processing to electronic data processing in many modern businesses.
However, the findings reveal the important of accounting information
system in management decision making as well as its important to country at
large. This will encourage organizations, schools and government to use
information of accounting sector in making her decision.
5.2 CONCLUSIONS
Having carefully conducted this research, it is the researcher candid opinion
that study of this kind should be encouraged especially at this period of

technological advancement within the institution/school. Accounting information
system has lapses that can easily be identified. We feel not satisfied to have
delved into this area of specialization and prospective scholars to see accounting
information system as an interesting field of study.
It is advisable that every institution/school need to have its own accounting
information center, so that records of previous accounting programmed could
easily be retrieved from the accounting department. It is unequivocal therefore,
that proper identification of accounting needs of every staff can be handicapped
due to the inadequacy of accounting information and to the complete absence of
qualified and competent accounting specialist to the job.
The study revealed that accounting performance a crucial role on
management decision and organization performance which has been shown to be
major force in the decision making. This is achieved by implementing the best
fundamental concept of accounting suitable for each institution.
Studies have shown that successful utilization of accounting information
requires a fit between three factors: first, a fit must be achieved with dominance
view in the perception or origination of the situation. Second, the accounting
system must fit when problems are normally solved, i.e. the technology of the
organization. Finally, the accounting information must fit with the culture i.e. the
norms and value system that characterized the institution.
5.3 RECOMMENDATIONS.

1. For the school/institutions to set high qualities information from the
system, it requires software for optimal application of accounting
information system.
2. The school/institution should depend on accounting information systems to
make financial decision.
3. Efforts should be made to measure the effect of currently employed
accounting concept on management decision making.
4. School/Institution should always keep records of past events in case of
future purpose; this can be possible with the use of computer or by fully
automating the institutions operations.
5. A professional accountant should be employed by the school/institution in
order to provide valuable information and keep accurate records of the
i stitutio s a ou t.
6. Employees should be encouraged to develop themselves by becoming
professionals in their chosen career; this will affect the institution to grow
positively.
7. Regular meeting with staff should be organized to disseminate information
about the institution and also elicit feedback that helps to improve the
institution.
8. Lastly, Government should also encourage the use of accounting
information to makes its financial decision and economic decision as well.
5.4 SUGGESTIONS FOR FURTHER STUDIES.

In spite of all efforts made by researcher to cover the subject matter of this
study, there was a limited extent to which he could go. Thus, it is highly
imperative to say emphatically that this study is not an end in itself but a means
to an end. In other words, this research is inexhaustible. Hence, there is room for
improvement in other areas not adequately covered by the researcher.
However, other researchers should also research on another local
government or state.

REFERENCES
Adekanye F. (2006): The Element of Banking. F. A. Ilorin 3rd
Edition Ilorin
Adewumi, W. (2002): Business Management - An Introduction: Lagos: Macmillian
Nig Publishers Limited.
Ajayi I. B. (200 : The Role of Financial I stitutio to the Busi ess Fi a e .
Publication of CBN Volume 15, No 1 January/May.
Akinfemiwa E. A. (2003): An Introducing Text of Agricultural Business and
Financial Management Wosen press Akure.
Albert, (2009): Administration: The Art and series of Organization and
Management. New York, Alfred.A. Knopt Ltd.
Batty . J. (2005): Industrial Administration and Management. London, Mac Donald
and Evans Limited.
Falegan S. B. (2005): C edit Poli y i Fi a ial I stitutio Published Habib
Limited/Ilorin.
Hanson j. L. (2000): The Structure of Modern Commerce. The Chaucer Press
Buugay Sufforlk Great Britain.
James B. B. (2003): Banking Management in Nigeria. Macmillan Company. New
York.
John A. (2000): The Significant of Financial Institution to the Business Finance.
NICB, Annual Seminal Nigeria.
Mike A. Dimgba I. (2004): Nigeria Marketing Memories Nigeria. Sun Publisher
Limited.
Mussel,man and Hughes (2006): Introduction to Modern Business Issues and
Environment. England, Longman Group Limited.
Olaniran et al (2007): Research Method Made Simple. Ibadan, Yekob Venture Ltd.
Olaniran et al (2008): Management Principles and Concepts. Ibadan, Edjon
Publishers Ltd.

Olashore O. D. (2002): Financial Punch. A Business and Economic Weekly. A
Review of the 1983 Budget. A Banker Perspective. December 15-21 volume
2, No 98.
Salau, K.K. (2002): Computerization in Business Administration and Management.
Journal of Vocational and Technical Studies Vol. 1 No. 2
Shola B. F. (2007): Redesigning Nigeria Financial System U.P.L Ibadan.
Whiting D. P. (2009): Elements of Banking mc. Bonald and Whiting Press London.
Publisher Limited.
Yonder D (2002): Personal Management and Industrial Relations. 5th
Edition:
London, Pitman and Son Limited.

QUESTIONNAIRE
UNIVERSITY OF UYO, FACULTY OF EDUCATION, DEPARTMENT OF ACCOUNTING
EDUCATION,
Dear respondent.
The questionnaire is assigned to obtain your views on the above subject
matter. Your objective response to the items on the questionnaire will enable the
researcher to arrive at conclusion for research purpose. You are therefore
implored to respond to the questionnaire accordingly. Please tick the column
appropriate
SECTION A PERSONAL DATA
1 Name of School______________________________________________
2 Sex: Male ( ) Female ( )
3 Age Below 25 ( ) 26-35 ( ) 36 above ( )
4 Marital Status Married ( ) Single ( ) Divorced ( )
5 Education qualification WAEC ( ) OND/NCE ( ) HND/B.Sc/BA ( )
M.SC/MA/MBA ( )
6 Years of working experience: 5-10 ( ) 11-20( ) 20 and above ( )
SECTION B
THE ACCOUNTING INFORMATION SYSTEM AND ITS IMPACT ON
MANAGEMENT QUALITY DECISION MAKING IN SECONDARY SCHOOL IN
NIGERIA.
Note:

SA= Strongly Agreed,
A= Agreed,
SD= Strongly Disagreed,
D= Disagreed.
Construction: please tick ( ) the appropriate answer of your choice
independent of others.
S/N STATEMENT SA A SD D
1. Accounting Information System will have impact on
the quality of management decision in Nigeria
secondary schools
2. Accounting Information System increase the rate of
economy development in Nigeria
3. Accounting Information System enhances the
quality of management decision in the Nigeria
secondary schools
4. Accounting Information System influence
difference sectors in Nigeria economy positively.
5. Accounting Information System uses the
information section to fight against poverty in
Nigeria.
6. Accounting Information System promote creative
and innovative approaches to the quality of
management
7. Accounting Information System provides take off
grants to the national open University of Nigeria.
8. Accounting Information System provides final say
to any business organization.
9. Accounting Information System provides the
summary, analysis of business organization which
gives room for mass participation in decision
making process.
10. Accounting Information System brings about
financial statement
11. Accounting Information System brings information
in business organization to serves as a mechanism
for rapid growth.
12 Accounting Information System provides details of
weekly, monthly and yearly Accounting information
of any business organization.
13 Accounting Information System help school to
make inventory decision

14 Accounting Information System help school
management to make income statement decision
15 Accounting Information System help institution to
make investment decision.
16 Accounting Information System help schools to
make cash related decisions
17 Accounting Information System help school to
make financial decision
18 Accounting Information System help management
to make marketing decision
19 Accounting Information System help management
to make informed economic decision
20 Employees are not convinced by the method of
Accounting Information System

Accounting Information System And Its Impact In Management Decision Making

Recommended

Recommended

More Related Content

Similar to Accounting Information System And Its Impact In Management Decision Making

Similar to Accounting Information System And Its Impact In Management Decision Making (20)

More from Sabrina Baloi

More from Sabrina Baloi (20)

Recently uploaded

Recently uploaded (20)

Accounting Information System And Its Impact In Management Decision Making