EXTENT OF UTILIZATION OF ACCOUNTING INFORMATION FOR MANAGEMENT DECISION MAKING BY SMALL SCALE BUSINESS OPERATORS

Stephen A. Igboke, Joy Anulika Ogbu

Abstract


The study determined the extent of utilization of accounting information for management decisions making by small scale business operators. Two research questions and two null hypotheses (tested at 0.05 level of significance) guided the study. A descriptive survey research design was adopted using a population of 1,932 small scale business owners. Taro Yamani formula was utilized to determine the sample size of 332. A structured questionnaire was developed by the researcher for data collection. The instrument was duly validated. Cronbach Alpha was used to determine the 0.88 reliability coefficient of the instrument. Data collected were analyzed using mean and standard deviation for the research questions while ANOVA and t-test were used to test the null hypotheses one and two respectively, at a .05 level of significance. The results showed that financial statements and accounting ratios were moderately utilized by the small scale business operators. The results also showed that years of experience and gender had no significant influences on the mean responses of the respondents. The educational implications of the findings include the need for curriculum adjustments in both secondary and tertiary institutions for the improvement of accounting education in Nigerian and placing emphasis on the importance of accounting information for management decision-making in small scale businesses. Based on the above findings, it was recommended, among others, that there should be prompt production of the financial statements, ratio analysis and the summary of assets and liabilities, revenue and expenditures for the enterprise for the period under review to enable the small scale business owners to make valid and effective business management decisions.

 

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utilization, accounting information, management decision, small scale businesses

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DOI: http://dx.doi.org/10.46827/ejes.v10i4.4777

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