The effect of accounting information on decision making in an organization a case study of MTN Uganda

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Kampala International University, College of Economics and Management
The study focused on the effect of accounting information on decision making of an organization. The study was carried out at MTN Uganda located in Jinja, Uganda. The objectives of the study were to examine the users of accounting information, the qualities of good accounting information that influence effective decision making and the relationship between accounting information and decision making of MTN Uganda. Related literature on quality management and financial performance of an organization was reviewed. Cross-sectional study design was chosen because it was the most appropriate given the nature of the objectives and limited time available to conduct this research. Qualitative and Quantitative research designs were used and processed using qualitative models to show what existed at MTN Uganda. A sample of 25 respondents was selected using simple random sampling technique together with purposive sampling which helped the researcher select respondents of different categories. A population of 40 individuals was chosen in which a sample of 25 respondents was selected using purposive and simple random sampling technique. Primary data was collected using closed ended questionnaires with questions drafted from the objectives of the study rated using the 5 point like scale and secondary data was collected from the secondary data sources was presented using, frequency tables and analyzed using frequency tabulation. The study found out that various individuals in accounting department, suppliers, government agencies, employers and their union representatives, managers need accounting information. The findings indicated that good accounting information must be relevant, should achieve cost benefits balance, timeliness is required for good accounting information; it must be accurate, clarity and conciseness. The study concluded that the information supplied by the accountant shows the effect of risk and uncertainty and the range of likely decision making outcomes. The recommendation was made that MTN Uganda should use accounting information systems effectively to verify the accuracy of accounting information provided by the accountants and a precedent database should formulate the accounting standards based on the systems of management. Further studies should be conducted on the effect of accounting information on the effectiveness of an organization
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelor’s Degree in Accounting and Finance of Kampala International University.
Accounting information, Decision making, Organization, MTN Uganda