Decision-Making and its Impact on Managerial Accounting in a Peruvian Mype

Abstract

Objective: The objective of this research was to determine the impact of managerial accounting on decision making in a small company in the food sector in West Lima. Theoretical framework: small companies in this sector have serious problems of administrative management, production, high talent turnover and precarious financial controls because their owners do not take into account the risks of investing in order to grow rapidly. Methodology: The study was based on a quantitative, applied, non-experimental, causal correlational, cross-sectional approach. The sample consisted of the organisation's financial statements. Documentary analysis and the documentary guide were used as techniques. The questionnaire was used as an instrument. In addition, the coefficients of the structural model to clarify the impact of management accounting on decision making will be used for hypothesis testing. In order to consequently establish the goodness-of-fit indicators of the structural model to establish the degree of incidence between the variables. This will be achieved by using the statistical software Amos V.20. Results: Managerial accounting has a significant and positive impact on decision-making in a small company in the food sector in West Lima, since the observed significance 0.000 is less than the theoretical significance 0.05 and positive or direct since the value of the standardised coefficient is 0.893, from which it is concluded that managerial accounting contributes 89% to decision-making. Conclusions: The impact of managerial accounting on decision making and the contribution of each dimension was observed. the financing decision contributes 86% to decision making, the decision on risk contributes 84%; and, the decision on profitability contributes 93% in decision making. In addition, the contributions to the decision-making dimension are shown as; infringing 80%, intolerant 87% and distrustful 94%. Originality/value: Decision-making is of vital importance in every company as it helps management to make good choices.