Accounting Information and Co-Operative Success

Abstract

The study examined the relationship between the use of accounting information and the cooperative success. Little has been known on what accounting information is used by the co-operatives in making important decisions pertaining to their operations. The study, therefore, examined the use of cost information, income statement information, balance sheet information and budget information among co-operatives. The study used survey research design whereby data were collected using questionnaires from 50 co-operatives in Kilimanjaro region. Data were analyzed using Pearson's correlation, regression analysis as well as ANOVA. The findings of the study indicate that, there is a strong positive relationship between accounting information and the success of the co-operatives. For co-operatives to achieve success, among other things, they should be able to use effectively accounting information, which acts as a tool for informed decisions-making. Also, using accounting information properly for the benefit of the organization promotes transparency and encourages members to safeguard their co-operatives affairs for effectiveness, increased productivity and enhanced accountability.