| The business environment has greatly changed over the past decade primarily due to technology, globalization and in some cases, deregulation. These factors combined have increased the importance of managers using accounting information in decision making. The study focuses on the following research questions: (1) Which accounting concepts and information do managers use in decision making? (2) How proficient are managers in using accounting concepts and information in decision making? The purpose of this study is to determine the accounting concepts and information used by managers in decision making and how competent managers are in using accounting concepts and information in decision making. A qualitative research methodology was used in performing this study.; Individual interviews were conducted with 10 top-level managers in two Class I freight-carrying railroads. Marketing and costing managers were interviewed regarding the accounting concepts and information used by marketing managers in decision making, whereas operations and costing managers were interviewed regarding the accounting concepts and information used by operations managers in decision making. The findings are based on the information gathered from these 10 managers.; The findings of the study are formed from the types of decisions made by marketing and operations managers. The most important accounting concepts for both marketing and operations managers include: understanding cost terminology, cost behavior, and cost-volume-profit relationships. There are several other accounting concepts specifically important for each manager type. With both types of managers, the proficiency of using accounting concepts and information in decision making is dependent upon the individual.; A series of recommendations include help for managers and potential managers, the Class I freight-carrying railroad industry, other businesses, management accountants, and accounting educators regarding accounting concepts and information essential for managers in decision making, as well as opportunities for future research. |
