Posted: May 25th, 2022

Accounting Information in Decision Making Process

Role of Accounting Information in Decision Making Process

Accounting information plays an influential role in guiding decision making process in an organization. Our research shows that not all organizations would use accounting information in the same manner even though they might all utilize it for making better decisions. However some organizations might limit those decisions to the area of cost control while others would be comfortable using accounting information for making all kinds of strategic decisions from expansion, contraction to downsizing and technological overhaul.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting Information in Decision Making Process
Just from $13/Page
Order Essay

Thus accounting information indeed has a significant place in the decision making process. However it all comes down to the level of trust that exists in a firm between accountants and senior management. The senior management must fully accept the information presented to them and also be able to rely on that in order for it to take it seriously and make decisions based on that information.


Accounting information can have a significant bearing on decision making process. A decision requires choosing the right course of actions from among a list of possible options and alternatives. However this decision has to be guided by more than one thing such as accounting information, intuition, trends etc. The data and information available with accounting managers can be utilized to make important decisions such as expansion, downsizing, and recruitment and so on.

Management accounting plans an important role in guiding important decisions. It is defined as:

“[] the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that assists executives in fulfilling organizational objectives []a formal mechanism for gathering and communicating data for the ends of aiding and coordinating collective decisions in light of the overall goals or objectives of an organization.” (Macintosh, p.2)

Accountants are responsible for providing key information about company’s resources and financial health. Lack of information or faulty information can result in disastrous decisions which can lead to financial collapse as Young J. (1982) claims that, “The road to bankruptcy is paved with poor decisions.” (p.39) Hence management would regularly consult accountants to stay in touch with financial performance of the company and to make sure they have the resources to fund any new decisions they might make. The information provided by management accountants acts as a bridge between actions in the pipeline and a company’s strategic vision. This information is gathered through financial as well as non-financial tools which are designed to help an organization meets its targets and implement changes in its strategy.

For example if an airline finds out that it is not doing well due to rising costs of fuel, it will have its accountants present all the data to validate this suspicion. Once the data is presented, accountants explain how the airline is doing by showing costs, expenses and revenues over a certain period of time. This allows the management to see how it is doing and where it is losing money. Once it is identified that fuel prices are affecting a company’s profitability, it will design its future actions based on this knowledge. The airline may decide to cut costs on maintenance or reduce its workforce or expand into other areas or take longer routes to compensate for the loss due to higher fuel prices.

Hence the role of financial and non-financial information presented by accountants has serious bearing on the decision making and thus we define accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.” (Drury, p. 3)

Horngren, Sundem and Stratton (2002) explain that the primary objective of accounting information is to help in the decision making process because better knowledge of information gained from accounting tools leads to better strategic decisions. Accountants can thus influence decision making by providing valuable information so that management can take decisions which are in line with organization’s long-term objectives.

Emmanuel, Otley and Merchant (1990) claim that accounting information is primarily used to place controls where needed. In other words in order to plan effectively, an organization needs to see where more controls are needed. And hence they use accounting information to identify areas of trouble and place controls for better planning in future.

William J.B. Jr. argues that the role of accounting information is dependent on the availability of financial as well as non-accounting information and the weight that each set of information carries. For example if it appears that non-accounting information is more relevant to a certain plan or decision, then it will be used and accounting information may take a backseat. The proportion of accounting to non-accounting information determines the scope and magnitude of influence that such information can have on an organizational decision. (Qtd. Anderson (1978) p. 59)

The idea expressed by William Jr. is a vital one because many organizations seem to use financial information for cost controlling. Once a company feels that it is losing money in a certain area, it might decide to control costs in that area instead of using that information for making other decisions that can improve productivity and profitability.

This means that using variety of tools, accountants gather information which can guide the decision making process in an organization. However the way a company tries to use accounting information is unique to each organization. Some organizations would use the information to make better decisions with regard to all departments and areas. Some would only limit it to cost control decisions. But in every organization, it is immensely important to have trust between accountants and senior management because without trust, it wouldn’t be possible for management to completely depend on the information presented to them and similarly accountants may also fail to reveal the most accurate information.


Emmanuel, C., Otley, D. And Merchant, K. (1990), Accounting for Management Control,

2nd edition, London: Chapman & Hall publishing

Horngren, C.T. Sundem, G.L. Stratton, W.O. (2002), Introduction to Management

Accounting, 12th edition, Englewood Cliffs, NJ: Prentice-Hall International

Drury, C. (2000), Management & Cost Accounting, 5th edition, London: Thompson Business


Anderson D. And Raun D. (1978) “Information Analysis in Management Accounting,” New

York: A Wiley/Hamilton Publication

Young, J.F. (1982), Decision-making for Small Business Management, 2nd edition, Florida,

Robert E. Krieger Publishing Company

Macintosh N.B. (1995), Management Accounting and Control Systems: An Organizational

and Behavioral Approach, 1st edition, Chichester: Wiley publications

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.