Role of Accounting Information in the Decision-Making Process

Abstract

The purpose of this research is to demonstrate the importance of accounting information in the decision-making process which enhances more the performance of the organization. Accounting information will provide accurate information about an organization's current structure. This could enhance financial statements and reports to the company more trustworthy. A descriptive research method is used in this study. Because it appropriately addresses the study's key aims and research issues, the descriptive design is deemed appropriate. Primary and secondary data were gathered for the investigation. Through questionnaires, preliminary information was acquired from selected employees from selected companies. To gather preliminary data for the study, questionnaires were distributed and filled out by respondents. Organizational records and data obtained through qualitative methods or research make up secondary data. The study uses a survey methodology and stratified sampling procedures to select 25 employees from the survey's participating firms, which include RFL, WALTON LTD, Aarong, CP Bangladesh Co. Ltd., and Grameenphone Ltd. To collect information from respondents, a well-structured questionnaire was used, which was deemed valid and reliable. And hypothesis are tested using chi-square. According to the findings of this research, accounting information is a crucial procedure for analyzing organizations' management, decision-making, and control activities. The results supported the hypothesis analysis, indicating that there is a strong positive relationship between accounting data and organizational appraisal. As such, accounting information can help managers understand their business and management tasks more clearly and reduce risk in their decision-making. Research suggests that an organizations can enhance sales and improve marketing by utilizing suitable accounting information. Accounting data also helps to ensure that human resource decision-making is effective and efficient.