TITLE:
Accounting Information Practices in Management Decisions
AUTHORS:
Md. Khalilur Rahman, Md. Golam Mostafa, Md. Abud Darda
KEYWORDS:
Accounting Information, Decision Making Process, Effectiveness, Textile Industry
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.6,
October
25,
2024
ABSTRACT: The study investigates the practices and effectiveness of accounting information for making business decisions regarding strategy, production, marketing, investments, and human resource management that are crucial for success. The research adopts a quantitative research approach. A total of 50 textile companies from the Dhaka Stock Exchange (DSE), Bangladesh have conveniently been selected. A structured questionnaire was administered to obtain primary data from the selected professionals in the accounts and finance division. Statistical measures such as mean and standard deviation have been used in data analysis. A conventional one-sided t-test has been carried out to evaluate the respondent’s agreements regarding the effective practice of accounting information. Results have confirmed that accounting data is crucial for making accurate and timely decisions in the textile industry’s business aspects. In strategic decisions, accounting information stimulates the corporate vision, objectives, core competencies, and competitive advantage. In the production-related decision aspect, accounting information helps to manage the production equipment and facilities, production planning, and control. Accounting information also has an important function in human resources policy decisions such as promotion, transfer, training, and development. Investment-related decisions, for instance, investment in fixed assets, capital raising, borrowing, liquidation, and dividend payout are also influenced by accounting information. Finally, accounting information has an important role in marketing-related decisions such as market research, market segmentation, and sales commission as well. The study demonstrates that the textile industry of Bangladesh uses accounting information for making business decisions. Business management authority should accumulate accounting information from all the divisions of the company and organize them for efficient business decision-making. The research will increase the knowledge of the value of accounting information employed to produce appropriate and useful management decisions in the corporation by company management, stakeholders, and policymakers.