THE EFFECT OF ACCOUNTING INFORMATION ON DECISION MAKING IN AN ORGANIZATION A CASE STUI)Y OF MTN UGANDA

ABSTRACT

The study focused on the effect of accounting information on decision making of an

organization. The study was carried out at MTN Uganda located in Jinja, Uganda. The objectives

of the study were to examine the users of accounting information, the qualities of good

accounting information that influence effective decision making and the relationship between

accounting information and decision making of MTN Uganda. Related literature on quality

management and financial performance of an organization was reviewed. Cross-sectional study

design was chosen because it was the most appropriate given the nature of the objectives and

limited time available to conduct this research. Qualitative and Quantitative research designs

were used and processed using qualitative models to show what existed at MTN Uganda. A

sample of 25 respondents was selected using simple random sampling technique together with

purposive sampling which helped the researcher select respondents of different categories.

A population of 40 individuals was chosen in which a sample of 25 respondents was selected

using purposive and simple random sampling technique. Primary data was collected using closed

ended questionnaires with questions drafted from the objectives of the study rated using the 5

point likert scale and secondary data was collected from the secondary data sources was

presented using, frequency tables and analyzed using frequency tabulation.

The study found out that various individuals in accounting department, suppliers, government

agencies, employers and their union representatives, managers need accounting information. The

findings indicated that good accounting information must be relevant, should achieve cost

benefits balance, timeliness is required for good accounting information; it must be accurate,

clarity and conciseness. The study concluded that the information supplied by the accountant

shows the effect of risk and uncertainty and the range of likely decision making outcomes. The

recommendation was made that MTN Uganda should use accounting information systems

effectively to verify the accuracy of accounting information provided by the accountants and a

precedent database should formulate the accounting standards based on the systems of

management. Further studies should be conducted on the effect of accounting information on the

effectiveness of an organization