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BACKGROUND OF THE STUDY
Eyitayo, Eyitayo and Akeju (2004) explained that accounting generally is a systematic process of measuring and reporting to various users, financial information, for decision making, regarding the economic activities of an organization or and accounting is different from book-keeping, which is making up for financial record and keeping them. This is more or less a procedural matter, and many informed person can carry on the matter. In any case, accounting metamorphosed from book-keeping, due to the need of emerging business environment, which has become dynamic and volatile the different industrial revolutions have boosted the use of accounting in large corporation business, and without an effective accounting system, there can be no meaning for measurement of those transaction that are involved in any business transaction. This project is aimed at educating people on the importance of accounting and its effects on management control of the organization. In this research project we will be looking at accounting as an information system the researcher will be examining the definition, the scope and function of account and how it affects management control.
Accounting has a dynamic nature, it has been defined in varied term, and the researcher will be looking into the definition and try to show that they are all talking about something. It is find a matter of semantics, the researcher will also be looking into what management control is, and various way it can be implemented in organization and finally, the researcher will be explaining how accounting can influence management control. Accounting has grown into a field of study as a result of its importance. The purpose of accounting is to provide information about the economy of an organization. It is the means of recording the fact of forecasting about the economic aspect of the organization activities and translating them into useful form for further action. The two main branches of accounting are financial accounting and management accounting while the former has to do with gathering information on the stewardship of the business to it’s owner or owners, the matter has which is the main area of forms in this research. Management accounting is most useful for internal decision. It varies from very broad, being ranged planning information for budget to very detailed cost analysis for cost control purpose; the purpose of management accounting is to help the goals. It is a formal looking process involving short range, and long range planning.
The most important thing a manager needs for decision making is information, it is important to know that when we are talking of accounting system we are all together looking at an information gathering system because it plays the role of an information service to manager and other relevant users of the information that gives the true and fair view of the organization. Accounting infor5mation facilitates effective planning control and decision making by management. Since business has become very complex, and effective sound accounting system is headed from which accounting information can be readily and accurately derived for management use at any given time. Therefore makes accounting an important decision tool, which ensures that survival of an organization.
In problem solving, accounting information is a key factor, the reason is that various alternatives methods of problem solving usually have specific cost benefit implication that can be measured. Accounting is generally responsible for gathering available cost benefit data and for communicating it in a usable form to the appropriate authority for decision making. Therefore if accounting information form a basis of management decisions it requires astuteness and skill for effective control of the operation of a business especially now that business is both dynamic and volatile.
STATEMENT OF THE PROBLEM
The main problem to be investigated in this study is to ascertain the effect of accounting systems on management control. Many institutions offering accounting programmes are being established following the failure of government to provide adequate education facilities for the school to survive competition in the future they must be able to control cost, prevent fraud and monitor collections.
The accounting system plays significant role in these activities, many directors of institute of continue educations have no accounting background and so if the school must not collapse there must be effective management control.
PURPOSE OF THE STUDY
- To ascertain the adequate of accounting information system in the institute or continuing education and to what extent the accounting has helped in management control.
- It also serves as a basis of advice to director on the importance of accounting information in exercise or mana1gement control.
- To recommend key management control factors that the accounting system must address if the school will be able to compete effectively in the future.
- To provide information about economy of an organization.
SIGNIFICANCE OF THE STUDY
- To educate the public generally on the necessity of accounting information.
- To educate the businessmen and businesswomen and on the necessity of accounting information in their business.
- To educate the non-profit making organization, even to the house wife who can implement or evolve a system of accounting for the management of the house.
- To help the management to get an information, service to manage others relevant issues of the organization.
- Is there any account department in institutions?
- Are the account’s personnel adequate to cope with the operations of the institute?
- How many books of account are kept by the institute?
- Is there form of budgetary control system?
- What are the sources and application of funds?
SCOPE OF THE STUDY
This research work is only limited to the institute of continuing education (I.C.E) in Benin City. The scope of this study known’s the past and present situation of the use of accounting information in management of staff in an organization.
DEFINITION OF TERMS
Accounting: The act of recording, classifying, and summarizing in a significant manner and in terms of money transactions or events which are in part at least of a financial character and interpreting the result therefore.
Book-keeping: The act of recording the financial transaction of a business or an individual in term of money.
Management: The ability to put thing, together within limited resources to achieve set goals.
Organization: It refers to the structure of relationship among individuals.
Information: The process of acquiring knowledge.
Economy: Saving of sources to avoid wastage.