ACCOUNTING AS A TOOL FOR DECISION MAKING: A FOCUS ON SHELL PETROLEUM DEVELOPMENT COMPANY WARRI

Abstract

This study focused on the effects of accounting report on the management of the organization.  The objective of the study was to determine whether accounting tools were used by management for proper accountability and the extent which report guided management in decision making in the organization, the study offered solution to the problems encountered by the management.  In the implementation of the accounting tool, however, it relied mostly on primary data generated through field survey of the study population of 60 respondents of which 48 responded and 12 did not respond the data obtained were presented in tabular form and percentage analysis was applied in data analysis while chi-square X² distribution was used in hypothesis testing.  From the questionnaire issued, it was discovered that some of the problems found included that accounting reports has a positive impact on the management decision in Shell Petroleum Development Company and there is a relationship between performance and effective use of accounting tool by management.  It was recommended that one accounting department be maintained by the organization to encourage efficiency, effectiveness and economic growth of the nation thereby aiding national development. The relevant application of this accounting tool by management will aid effective and efficient decision making which has enhanced the growth and profitability of the company (Shell Petroleum Development Company Warri) and have been recommended for other companies around the world.