MANAGEMENT ACCOUNTING

This study examined the relationship between management accounting practices and strategic decision making in organisations in Nigeria. The main objective was to determine how management accounting tools such as budgeting and budgetary control, standard costing, variance analysis, activity-based costing, and cost-volume-profit analysis influence strategic decision making in Nigerian firms. The study adopted a descriptive survey design, and data were collected using structured questionnaires administered to selected organisations in Edo State. The sample size was determined using Yamane’s formula, and the data collected were analysed using descriptive and inferential statistical techniques. The findings revealed that management accounting practices significantly influence strategic decision making, particularly in areas such as cost control, planning, and performance evaluation. The study concluded that effective application of management accounting tools enhances strategic decision making and organisational performance. It recommended that firms in Nigeria should strengthen their management accounting systems and continuously train managers in the use of modern accounting tools to support strategic decisions.

Strategic decisions are very important decisions which organizations are obliged to make to ensure growth, sustainability, and wealth maximization for shareholders. The study examines the relationship between financial reporting and management accounting and how this relationship aids strategic decision-making. This study seeks to provide evidence on how financial reporting and management accounting influence how strategic decisions are chosen and implemented by organizations. The analysis was carried out on a sample of 10 manufacturing (industrial and consumer goods) companies quoted on the Nigerian Exchange Group (NGX) as of August 6th 2023. It investigates variables of financial reporting and management accounting which are potential determinants that influence strategic decision-making among listed Nigerian Manufacturing firms for a period of ten years 2011-2020. It evaluates the effect of financial performance, market share and competition, industry trends and economic factors, capital expenditure, cost structure, budgeting and forecasting, performance and key performance indicators and capital investment appraisal on the strategic decisions made by listed Nigerian Manufacturing firms. Secondary data from the annual reports of the sampled firms have been analyzed using descriptive and regression models. The results revealed that of financial performance, market share and competition, industry trends and economic factors, capital expenditure, cost structure, budgeting and forecasting, performance and key performance indicators and capital investment appraisal are strong determining factors of strategic decisions in Nigerian Manufacturing firm. Therefore, I strongly recommend that firms harness the relationship between financial reporting and management accounting to enable them to make more informed, data-driven, and strategically sound decisions. This will potentially give them a competitive advantage and eventually lead to improved long-term performance and sustainability