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Evaluation of Accounting Information for Making Management Decisions

Author

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  • Svitlana Kuznetsova

    (Kharkiv Institute of Trade and Economics of Kyiv National University of Trade and Economics, Kharkiv, Ukraine)

Abstract

The article analyzes the current approaches towards the evaluation of efficiency of accounting information and explains the accounting information evaluation pattern, when taking management decisions with due account for the information streams as influenced by the integration of visual attention and understanding of strategic business plans. Science-based approaches towards understanding the essence of evaluation of accounting information are under analysis. The elements of conceptual pattern of accounting information evaluation prior to taking management decisions have been explained. The process of synthesis of scientific basics of evaluation of accounting information, while taking management decisions, has been clarified. It is found that studying the interdependency between attention and judgment is crucial for evaluating the behavior of managers, while taking decisions. The quality of decisions stands for the capability of managers to take decisions, which comply with the strategic business goals. In this respect, the essential factor determining the quality of the decisions is the mindshare paid to the strategic efficiency indices, while evaluating the accounting information.

Suggested Citation

  • Svitlana Kuznetsova, 2017. "Evaluation of Accounting Information for Making Management Decisions," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 21-26, June.
    • Handle: RePEc:iaf:journl:y:2017:i:2:p:21-26
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    File URL: http://www.afj.org.ua/pdf/467-ocinka-oblikovoi-informacii-dlya-priynyattya-upravlinskih-rishen.pdf
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    File URL: http://www.afj.org.ua/en/article/467/
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    References listed on IDEAS

    as
    1. Birnberg, Jacob G. & Shields, Michael D., 1984. "The role of attention and memory in accounting decisions," Accounting, Organizations and Society, Elsevier, vol. 9(3-4), pages 365-382, October.
    2. Banker, Rajiv D. & Chang, Hsihui & Pizzini, Mina, 2011. "The judgmental effects of strategy maps in balanced scorecard performance evaluations," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 259-279.
    3. Yasheng Chen & Johnny Jermias & Tota Panggabean, 2016. "The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 113-146, March.
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    Cited by:

    1. Horvat Tatjana & Mojzer Jožica, 2019. "Influence of Company Size on Accounting Information for Decision-Making of Management," Naše gospodarstvo/Our economy, Sciendo, vol. 65(2), pages 11-20, June.

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    More about this item

    Keywords

    management accounting; evaluation; management reporting; accounting information; management decisions;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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