The Impact of Accounting Information on Management's Decision-Making Process of Telecommunication in Australia

This research paper aims to analyze the impact of accounting information on the decision-making process of telecommunication managers in Australia. It explores the value of accounting information, identifies its usage by managers, and examines the issues faced. The research aims to provide suggestions for enhancing the implementation of accounting information in decision-making.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Problem statement.......................................................................................................................3
Research Aims and Objectives....................................................................................................4
Justification and potential output of the Research.......................................................................5
Conceptual framework and hypothesis development......................................................................6
Accounting information system...................................................................................................6
Types of accounting information.................................................................................................6
Positive impacts on decision making...........................................................................................7
Issues faced by managers.............................................................................................................7
Negative impact on decision making...........................................................................................8
Hypothesis development..............................................................................................................9
Methodology..................................................................................................................................10
Research philosophy (positivist)................................................................................................10
Research Approach....................................................................................................................10
Research Design........................................................................................................................11
Data collection...........................................................................................................................11
Population sampling..................................................................................................................12
Data Analysis.............................................................................................................................12
Organization of the study...........................................................................................................13

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Gantt chart.................................................................................................................................14
Project Budget and Budget justification....................................................................................15
Reference list.................................................................................................................................16

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Research proposal topic: The Impact of the Accounting Information on Management’s
Decision-Making Process of Telecommunication in Australia
Introduction
An Accounting Information System (AIS) refers to a system that involves collecting,
storing s well as processing of financial and accounting data that are used by the managers of an
organization. The term ‘accounting’ in business language is a tool for recording, reporting as
well as evaluating economic events as well as transactions that has the potential to impose both
positive and adverse impact on the business organizations. It is the process by which all the
documents of the financial perforce of an organization that includes payroll, capital expenditure,
cost as well as other obligations to sale revenue along with owner’s equity are processed. The
accounting information process provides financial information associated with the financial
position of the organization, like profit and loss, cost and earnings, liabilities and assets and
others to the managers about the internal as well as external users, like employees, potential
investors, financial institutions as well as other stakeholders of the company. The chief purpose
of an account Information system is to help managers as well as other crucial stakeholders of a
business enterprise to make effective decision based on the information provided by the system.
It becomes highly difficult for the management of an organization to make effective
decision for the company if there prevail a lack of financial information about the same. In order
to make efficient decision, information based on genuine facts and figures needs to be there.
Inappropriate decision making has the potential to lead to a disaster by imposing highly negative
impact on the profit and revenue of the organization. Accounting provides the management with

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information associated with the financial position as well as statistical data on the basis of which
managers are able to make an effective decision.
Problem statement
When it comes to the Australian telecommunication, it is referred to the sector of
information and communication technology that is comprised of telephone companies and
internet service providers along with playing the crucial role in the evaluation of information
society and mobile communication. With the rising demand of Australia’s wireless connection,
the telecommunication industry is expecting annul growth of 0.2 percent in by the year 2020.
However, high competition between the existing telecommunication companies has led to
declination of the profit margin of the organization. With te abrupt rise in demand for enhanced
mobile connectivity driven by increased mobile data consumption, more than 8 to 10 mobile
service providers are compitating against each other. In order to gain competitive advantage,
these competitors are lowering their profit margin which in turn is resulting in drop in the overall
profit margin of the industry.
In order to enhance their profit margin while dealing efficiently with the increasing
competition in the telecommunication industry, mangers of telecommunication companies are
trying to make effective decisions based on the accounting information system of the companies.
However the problem lies in the quality as well as validity of the information, that includes
whether the information provided is timely, adequate and clear. While the purpose of the
accounting system is to reduce the risk, uncertainty as well as failure of a decision made by a
leader along with staying competitive in the market, often it is seen that lack of efficiency of the
accountants lead to generation of inaccurate information which in turn leads to failure of the
organization to achieve desired goal. However, accounting tools used for accounting

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information varies from one organisation to another. That is, one tool that efficiently works for a
particular telecommunication enterprise may not work for another one. Therefore employees
must have an
In a nutshell, the major problem detected when making effective decisions in an
institution includes identification of primary concept of accounting information that needs to be
incorporated by each organization that can affect the same both positively and negatively. This
problem has resulted in failure in the use of accounting information in the business.
Research Aims and Objectives
The aim of this research paper is to analyse the impact of the Accounting Information on
Management’s Decision-Making Process of Telecommunication in Australia. When it comes to
the objectives of the research, they are as follows:
1. To understand the value of accounting information in the decisions making process of an
organization
2. To identify as well as evaluate the usage of accounting information by the managers in
the telecommunication industry of Australia
3. To identify various ways in which each user has the potential to implement the usage of
information in order to obtain the benefit from them.
4. To find out the chief reasons of failure in the attainment of the objective of the
organization as a result of inadequate utilization of accounting information
5. To make effective suggestions that has the potential to enhance the potential of the
managers to more effectively implement the accounting information in their decisions
making process.

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The research questions that will be answered in the research paper are as follows;
1. Does the accounting information system impose positive impact or negative impact on
the decision making process of the managers or not?
2. Does appropriate usage of accounting information possess the potential to help the
organization in making effective decisions?
3. What are the issues faced by the managers of the Australian telecommunication industry
that prevents them from making effective decisions based on the accounting information
system?
4. What steps should be implemented by the leaders of the organization in order to ensure
implementation of effective accounting information system in the organization?
Justification and potential output of the Research
After reviewing a good number of articles associated with the topic, it has been seen that
while a lot of research has been conducted on several types of accounting information systems
and their impact on decision making process on the management, very limited number of
researches has been conducted in order to find out the impact imposed by accounting information
on the Decision-Making Process of the management of Australian Telecommunication. Thus, a
gap in literature has been detected. Considering the fact that the chief purpose of the research
paper will be to identify the impact imposed by accounting information on the Decision-Making
Process of the management of Australian Telecommunication, this research will show path to the
future researchers who wants to research on the specific topic. Not only this, this research will
also help the managers of the telecommunication industry of Australia to understand the impact
of accounting system on their decision making process and which accounting system will be

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most beneficial for them. This in turn will enhance the revenue of the organizations leading to
enhancement of GDP of the nation.
Conceptual framework and hypothesis development
Accounting information system
An accounting information system can be defined as the system that collects, store as
well as financial as well as accounting data that are used by internal users for reporting
information to the investors, creditors along with the tax authorities. Libby, (2017) stated that an
accounting information system possess three primary users that includes internal users, external
users and the government. When it comes to the Australian telecommunication industry, there is
no exception. The chief internal users of the accounting information system include the managers
as well as owners of the organization, AIS provide them with significant financial information on
the basis of which effective decisions are made.
Types of accounting information
Collier, (2015) pointed out that in different sector in Australia, three type of accounting,
each with different characteristics are used in order to make effective discussions. Three types of
accounting information includes Tax accounting, which are used by the Australian Government
tax authorities, financial accounting system, used by the investors, lenders as well as government
agencies and finally, management accounting that is for internal management. Brown-Liburd,
Issa & Lombardi, 2015) stated that it is highly crucial for an organization to identify which
accounting managing system needs to be implemented for the organization to ensure effective
decision making. The management accounting is focused on preparing reports that in turn
enables the management of the Telecommunication organizations in Australia to make effective

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decision about their business. Some of the major reports that are associated with the management
accounting include projection of cash flow, production costing, variance reports as well as
business acquisition analysis report.
Positive impacts on decision making
With the implement of effective and appropriate accounting information system,
managers are able to make effective decision that in turn enhances the profit margin and revenue
of the organization to a great extent. Wieder & Ossimitz, (2015) pointed out that the statistical
data provided to the managers about the financial position of the business like profit and loss,
liabilities and assets and cost and earning, makes it easier for them to develop effective strategies
that can enhances the financial condition of the organization.
Developing effective strategy, as being opined by Schaltegger & Burritt, (2017), helps
the mangers to gain competitive advantage in a highly competitive industry. Therefore, in the
telecommunication industry of Australia, accounting system does possess the potential to impose
highly positive impact on the decision making of the mangers if implemented in an appropriate
way.
Issues faced by managers
The chief issue faced by the mangers that lead to failure of accounting information
systems in organizations is the lack of efficiency of the employees to handle the accounting
information system effective. Appelbaum et al., (2017) pointed out that even a slightest mistake
can lead to inappropriate calculation and information that in turn lead to ineffective decision
making. Hence it is highly crucial to train employees so that effective usage of the accounting
information system can be ensured. Another major issue detected is the lack of effective

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understanding of which accounting tool will be appropriate for the organization. While one
accounting tool is found to be highly efficient for one organization, it may not be that effective
for another.
Negative impact on decision making
As a result of the issues detected, inappropriate accounting information impose highly
negative impact on the decision making process of a manager. The first negative impact that is
imposed includes inappropriate decision making due to wrong statistical information. This in
turn can lead to negative impact on the revenue of the organization as well as the reputation of
the same (AlKhajeh & Khalid, 2018). Another negative impact of accounting system on the
organization includes loss of information through power crashes or power outages. Considering
the fact that the information system of telecommunication industry is highly dependent on the
information stored digitally, it can be clearly understood that loss of information does adversely
impose the decision making process of the managers.

Accounting
Information
Types
Tax accounting
financial accounting
system
financial accounting
system
Positive Impacts
enhances the profit margin and
revenue
proper execution of the
important functions of
management organization
Issues
lack of efficiency
of the employees
inappropriate
calculation and
information
Descision
making of
managers
Negative impacts
inappropriate decision making due to wrong
statistical information
loss of information through power crashes or
power outages
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Figure 1: Conceptual framework
Source (Created by Author)
Hypothesis development
Hypothesis 1 H0 Appropriate usage of accounting information does not help the mangers of the
Australian Telecommunication industry to make effective decisions
H1 Appropriate usage of accounting information does help the mangers of the
Australian Telecommunication industry to make effective decisions
Hypothesis 2 H0 Appropriate usage of accounting information does not enhances the profit margin

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of the organization
H1 Appropriate usage of accounting information does enhances the profit margin of
the organization
Methodology
Research philosophy (positivist)
In order to conduct this research, the positivist research philosophy will be used. As a
research philosophy, the positivist research philosophy adheres to the point that only factual
knowledge that is gained with the help of senses possesses the potential to be trustworthy. In
positivist research papers, the researcher’s role is limited to interpretation as well as data
collection in an objective way. In this type of studies the findings of the researcher are both
quantifiable as well as observable (Kumar, 2019). Considering the fact that for this research the
researcher will use a lot of real-time data in order to find out imposed by accounting information
on the Decision-Making Process of the management of Australian Telecommunication, for this
research, the positivism research philosophy will be used.
Research Approach
A deductive research approach can be defined as the approach related to the development
of a hypothesis that is based on the existing theory. The term deductive means reasoning from
the “specific” to the general (Kumar, 2019). Considering the fact in this research, the aim of the
research is to analyse imposed by the accounting information on the Decision-Making Process of
the management of Australian Telecommunication, deductive reach approach will be used.

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Research Design
When it comes to research design, for this research, the exploratory research design has
been used. Exploratory, as being suggested by the name, intends to explore the research
questions instead of offering a final or a conclusive solution to the research issue. Considering
the fact that the aim of the researcher is to explore imposed by accounting information on the
Decision-Making Process of the management of Australian Telecommunication, the exploratory
research design will be used.
Data collection
In order to conduct this research both primary as well as secondary data collection
method will be performed. Primary data is collected from first hand or original data sources
specifically for the research. Primary data collection methods are considered to be more
expensive and time consuming than that of the secondary data collection methods. For this
research, interview with managers of Australian Telecommunication organizations will be
conducted in order to understand their perspective on the impact of accounting information on
their decision making process. When it comes to secondary data collection, secondary data is
collected from sources where data has been collected for uses other than the researchers (Taylor,
Bogdan & DeVault, 2015). Some of the most common sources of secondary data for social
science are comprised of censuses, information collected from government departments,
company records as well as data that was originally collected for other research purposes. For
this research paper, secondary data collection will be performed with the help of literature
review. Academic and scholarly literatures that are relevant to the research topic will be
reviewed by the researcher in order to collect secondary data.

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Population sampling
For selecting participants for primary data collection for this research, non probability
sampling method will be used. When it comes to selection of literatures for secondary data
collection method, again non probability sampling will be used. Non probability sampling
technique refers to the sampling technique where the participants or samples are gathered in a
process where all the individuals or samples are not provided with equal chance of getting
selected. For the primary data collection, 2 managers from two of the most popular
Telecommunication organizations of Australia will be interviewed. For secondary data collection
10 academic literatures that are written in the English language and are published within 10 years
will be selected for the literature review. Articles will be selected on the basis of the relevancy
with the research topic which is the Impact of the Accounting Information on the Decision-
Making Process of managers in Australian Telecommunication industry.
Data Analysis
In order to analyse the collected data, for this research, Qualitative data analysis method
will be used. Data analysis process of a research can be segregated into 2 parts, namely,
qualitative data analysis and Quantitative data analysis. The quantitative data analysis method
can be defined as the process of analysing data with the help of calculation of the frequency of
the variable a well as the differences between the variables. A quantitative approach is associated
with to the finding evidence to either support or to reject hypothesis that have been formulated
by the researcher in the early stages of the research process (Alvesson & Sköldberg, 2017).
When it come to the quantitative data analysis, it involves analysing the non numeric information
like interview, transcript, notes, recordings, images or text documents. Qualitative data analysis
can be segregated into five categories namely, content analysis, narrative analysis, discourse

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analysis thematic analysis and grounded theory. In this research, qualitative analysis of the data
will b performed with the help of thematic analysis. Thematic analyses is consider to be one of
the most common form of analysis that emphasizes pinpointing, examining as well as recording
the patterns of meaning within the data.
Organization of the study
The report will be organised in the following way:
Chapter 1 will contain Introduction of the research topic, the problem statement, justification for
the research and aims and objective of the research paper
Chapter 2 will include review of relevant literatures associated with the research topic
Chapter 3 will be comprised of the details of methodology that is used in the research like
literature review, Data collection and analysis methods, target population, Sample, Sample size
etc.
Chapter 4 will consist of the result and data analysis section.
Chapter 5 will be comprised of the conclusion of the research paper along with recommendations
how managers can uses the process of accounting information for making effective decision.
Gantt chart
Activity Starting date Duration
Identification of research
area
01/07/2019 14
Formulate research 16/07/2019 9

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questions
Formulate research strategy,
design and others
20/07/2019 24
Write research proposal 16/08/2019 13
Literature review 1/9/2019 25
Data Collection 26/09/2019 65
Data Analysis 26/11/2019 28
Final report and submission 27/12/2019 15
Final report and submission
Data Analysis
Data Collection
Literature review
Write research proposal
Formulate research strategy, design and others
Formulate research questions
Identification of research area
24-06-19 13-08-19 02-10-19 21-11-19 10-01-20

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Project Budget and Budget justification
In order to complete the budget within the given timeline of 15th September 2017, the budget of
the research has been estimated to be 6500 dollars. The justifications of the budget are as
follows:
The literature review to be done will require usage of peer reviewed articles, published journals
and various books. For this, 500 dollars has been estimated.
For conducting interview with each managers of two of the eminent retail organizations of
Australia, the estimation of expenses is around 6000 dollars.

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Reference list
AlKhajeh, M. H. A., & Khalid, A. A. (2018). Management Accounting Practices (MAPs) Impact
on Small and Medium Enterprise Business Performance within the Gauteng Province of
South Africa. Journal of Accounting and Auditing: Research & Practice.
Alvesson, M., & Sköldberg, K. (2017). Reflexive methodology: New vistas for qualitative
research. Sage.
Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2017). Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting
Information Systems, 25, 29-44.
Brown-Liburd, H., Issa, H., & Lombardi, D. (2015). Behavioral implications of Big Data's
impact on audit judgment and decision making and future research directions. Accounting
Horizons, 29(2), 451-468.
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for
decision making. John Wiley & Sons.
Kumar, R. (2019). Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Libby, R. (2017). Accounting and human information processing. In The Routledge Companion
to Behavioural Accounting Research,42-54.
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts
and practice. Routledge.

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Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Wieder, B., & Ossimitz, M. L. (2015). The impact of Business Intelligence on the quality of
decision making–a mediation model. Procedia Computer Science, 64, 1163-1171.