ABSTRACT
This project work attempts to evaluate the management accounting techniques used by the manufacturing company (A case study of Cadbury Nigeria, PLC) on decision making process. Lists of traditional and modern management accounting techniques were identified and the extent of their use was evaluated. Some of the techniques evaluated are; make or buy decision, opportunity cost, relevant cost, incremental cost, just-in-time, inventory management, budgeting, standard costing (variance analysis) cost-volume-profit analysis; activity based costing and linear programming.
Survey design was employed with the use of a well structured questionnaire. Respondents were selected based on simple random sampling technique. Hundred (100) Cadbury Plc. were sampled.
Two hypotheses were formulated and tested with the use of Chi-Square analysis. The analysis resulted to rejecting both hypotheses and hence accepting the two alternate hypotheses.
Based on decisions of the tested hypotheses conclusions were reached that application of management accounting techniques by manufacturing companies influence decision making process and There is significant relationship between the management accounting technique used on organization decision making process and the effective result of the decision made
Recommendations were proffered to Cadbury Nigeria Plc and the entire manufacturing companies.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management accounting techniques have in no small measure assisted different organizations especially manufacturing companies, in their decision making processes. It is a known fact that techniques change over the time largely because business themselves and the societies that they operate change as well. What was considered as a good management technique year ago may be considered ineffective in making decision in the future.
Also, changing external business environment has resulted in further developments in the tools and techniques used for management accounting. Traditional management accounting techniques had certain limitations associated with them, for instance, absorption costing methods have been found to be inappropriate in the modern environment. Similarly, standard costing suitability with respect to its general philosophy and detailed operations has come under severe criticism. It is believed that, traditional management accounting performance measures can produce the wrong type of response. However, the current techniques used by the management in making their decisions such as; make or buy, cost-volume-profit analysis, just-in-time, inventory management,budgeting,variance analysis, activity based costing, linear programming, relevant cost, incremental cost and opportunity cost are the techniques to be discussed in this write-up.