THE IMPACT OF ACCOUNTING INFORMATION ON MANAGEMENT DECISION MAKING PROCESS CASE STUDY: SAMSUNG ELECTRONIC CORPORATION

Abstract

This paper aims to explore factors, which influence the process of accounting information implementation in the context of developing countries like Vietnam where the challenging are much more than opportunities, as well as analyze and explain the change area of methodology and organization of company, after accounting information implementation. In this research, have finding for both theorical and practical are more importance. Beside, according the accounting information will lead to different profits to a company, therefore choosing a suitable accounting information is very important for managers. In additional, focuses on some of these tools, including the costing system, profitability, costing tools and budgeting, which will be presented in this thesis. The costing system contributes to the available knowledge of costs, building the basis for several decisions, like determining prices. Profitability is used especially for decisions concerning discontinuing operations, whereas budgeting deals with the evaluation of investments. This financial information supports decisions making. Various decision-making models have been identified in literature to examine this process of decision-making. Out of this pool a sequential model was chosen to illustrate the decision-making steps in SAMSUNG ELECTRONIC CORPORATION. This model divides the decision-making process into several stages that follow each other. However, it will be illustrated that the decision-making process in SAMSUNG is a bit more complex and cannot be easily squeezed into these steps. It will become apparent in this paper that this process is influenced by many people, making it difficult to determine one final decision-maker as well as a certain decision-making point. Besides, experiences, feelings, preferences and other qualitative factors can have an impact on decisions in SAMSUNG COPORATION. Nevertheless, financial information affects the decision-making process. In the role of management accounting information is interwoven and integrated in the whole decision course, having the ability to influence the process at almost every stage.