Using Accounting Information in Decision Making

‫بسم ا الرحمن الرحيم‬
Islamic University – Gaza ‫الجاماعة السإلماية – غزة‬

Faculty of Commerce ‫كلية التجارة‬
Department of Accounting ‫قسم المحاسإبة‬
Using Accounting Information in

Decision Making
(Applied Study on Jawwal Company)
Prepared by:
Islam Mohammed Olwan 220082166

Ola Younis Qudaih 220074439
Supervisor's name:
Mr. Salah Shubair.
A thesis Submitted in Partial Fulfillment of the

Requirement for the Degree of Bachelor of Accounting
‫‪August, 2011‬‬
‫بسم الله الرحمن‬

‫الرحيم‬
‫ييررفيعع ِاللهه ِاللعذيين ِآيمهنِوُا ِعمنِهكرم ِيواللعذيين"‬

‫ت‬‫"أهوهتوُا ِارلععرليم ِيديريجاَ ت‬
‫صدق ِا ِالعظيم‬
‫‪II‬‬
{11،‫} ِ ِسوُرة ِالمجاَدلة‬
Dedication:
ِ
Forِ Ourِ Palestine…
ِ
Forِ Ourِ University…
ِ ِ ِ ِ ِ
Forِ Ourِ Teachers…ِ
ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
Forِ Ourِ Family…
ِ
Weِ Presentِ Thisِ Research…
III
:Acknowledgment
- First of all, we thank Allah for helping
us to complete our Research.
- Our ability to accomplish this
research is due to the good effort
provided by our great university IUG.
- We thank very much our parents,
who were granted every thing in
their life for us, and also we thank
them for push us to success.
- We would like to thank Mr. Salah
Shubair for his advice and continuous
supports.
- For all our teachers at IUG and for
the IUG library staff.
IV
- We would like to express our
personal gratitude to Jawwal
Company.
- Also we would like to thanks our
friends for their help.
- Finally, thanks for every one who
contributes in any way to support us.
List of content:
Averseِ ofِ Quran…………………………………………………………II
Dedication…………………………………………………….…………
IIIAcknowledgment……………………………………………….………
IV
Listِ ofِ Content……………………………………….………………….V
Listِ ofِ Tables...……….ِ …………………………………….………...VII
Tableِ ofِ Figures…………………………………..…………….....….VII
CHAPTER 1: RESEARCH PROPOSAL.

ِ Abstractِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
...................................................................................................... ِ
ِ 3
ِ Introductionِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................................................................ ِ
ِ 4
ِ Researchِ Problemِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
....................................................................................... ِ
ِ 6
ِ Researchِ Objectivesِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................................................... ِ
ِ 6
ِ Significanceِ ofِ theِ researchِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
....................................................................... ِ
ِ 6
ِ Scopeِ andِ limitationsِ ofِ theِ researchِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
......................................................... ِ
ِ 7
V
ِ Researchِ hypothesesِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................................................... ِ
ِ 7
ِ Researchِ methodologyِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
............................................................................... ِ
ِ 8
ِ Relatedِ worksِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
............................................................................................. ِ
ِ 8
ِ Timeِ tableِ andِ budgetِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
.............................................................................. ِ ِ ِ 1
ِ 1
CHAPTER 2: LITERATURE REVIEW.

Section 1:ِ Accountingِ andِ Accountingِ Information:
ِ Introductionِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
.............................................................................................. ِ ِ ِ 5
ِ 1
ِ Whatِ isِ accounting?ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................................................. ِ ِ ِ 5
ِ 1
ِ Uses of accountingِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
.................................................................................. ِ ِ ِ 6
ِ 1
ِ Accounting as a service activityِ ?ِ ِ ...........................................................
ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ 1
ِ ِ ِ 6
Accounting as an Information System..................................................
ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ 1
ِ ِ ِ 7
ِ What is accounting informationِ ?.......................................................ِ 18
Qualitative characteristics of accounting information........................
ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ 18
ِ
ِ Sourcesِ ofِ accountingِ informationِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
........................................................... ِ
ِ 23
ِ Typesِ ofِ financialِ statementsِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................................... ِ ِ ِ 3
ِ 2
ِ Accountingِ informationِ andِ userِ needsِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
................................................... ِ ِ ِ 4
ِ 2
Usersِ ofِ accountingِ informationِ …………………….….…………….27
Purposeِ ofِ usingِ accountingِ information……………………………ِ ِ ِ ِ ِ 29
Section 2:ِ Decisionِ Makingِ Process:
Introduction…………………………………………..…………………32
Whatِ isِ decision……………………………………………………….32
Definitionِ ofِ decisionِ makingِ …………………………………….……33
Elementsِ ofِ anِ Effectiveِ Decisionِ Makingِ Process.………………….35
Decisionِ makingِ levels………………………………………………….35
Typesِ ofِ decisionِ making………………………………………….……37
Decisionِ makingِ model…………………………………………………40
Decisionِ makingِ steps…………………………………………………..41
Decisionِ scope……………………………………………….………….42
VI
Definitionِ ofِ Decisionِ Maker…………………………………………43
Characteristicsِ thatِ shouldِ beِ availableِ inِ theِ decision-make………..43
Groupِ Decisionsِ Making……………………………………….……..43
Advantagesِ andِ Disadvantagesِ ofِ Groupِ Decisionsِ Making………….44
CHAPTER 3: JAWWAL COMPANY.

ِ Introductionِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
.............................................................................................. ِ
ِ 48
ِ Aboutِ Jawwalِ Companyِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
......................................................................... ِ ِ ِ 48
ِ .
ِ Environmentِ friendlyِ andِ aِ friendِ toِ allِ ……….
ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
..................................... ِ
ِ 50
Visionِ andِ missionِ ofِ theِ company……………………………….……51
Goalsِ andِ Objectivesِ ofِ theِ company…………………………………51
Strategyِ ofِ theِ company……………………………………………….52
SWOTِ analysis……………………………………………………….…53
CHAPTER 4: METHODOLOGY.
ِ Introductionِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
............................................................................................ ِ
ِ ..58
Researchِ approach……………………………………….….………...58
Researchِ phases…………………………………………………….….58
Dataِ collection…………………………………………………………59
Societyِ andِ sampleِ ofِ theِ study…………………………………….…60
Interview………………………………...………………………………60
Contentِ ofِ theِ interview……………………………….………………61
Advantagesِ andِ disadvantagesِ ofِ theِ interview……….………………61
Summarizedِ theِ interview...…………………………………………….62
CHAPTER 5: APPLIED STUDY.

ِ Introductionِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
.......................................................................................... ِ
ِ …65
Summarizedِ theِ interview…………………………...………………….66
VII
CHAPTER 6: RESULTS AND RECOMMENDATIONS.
ِ Resultsِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
ِ
...................................................................................................... ِ
ِ 74
Recommendations…………….…………………………….………….75ِ
References………………………………………………………..…….76
Appendix…………………...………………………………………….80
List of Tables:
Tableِ 1.1:ِ Timeِ Tableِ ………………………….………………………11
Tableِ 2.2.1:ِ Levelsِ ofِ decisionِ makingِ …………..……….……….….37
Tableِ 2.2.2:ِ Typesِ ofِ decisionِ makingِ model……….………….……39
List of Figures:
Figureِ 2.1.1:ِ Accountingِ asِ Informationِ System………………….…..17
Figureِ 2.1.2:ِ Qualitativeِ Characteristicsِ ofِ Accountingِ Information….19
Figureِ 2.1.3:ِ Fundamentalِ Qualitiesِ (Relevance)………….…….….…19
Figureِ 2.1.4:ِ Fundamentalِ Qualitiesِ (Faithfulِ Representation)………20
Figureِ 2.1.5:ِ Enhancingِ Qualitiesِ ……………………………………22
Figureِ 2.1.6:ِ Usersِ ofِ accountingِ information…………………………26
Figureِ 2.2.1:ِ Stepsِ inِ theِ Decision-Makingِ Model…………………..40
Figureِ 3.1:ِ SWOTِ analysisِ ……………………………………………53
Figureِ 4.1:ِ Researchِ phases……………………………………………59
VIII
IX
Chapterِ -1-
Research
proposal
2
1.1 Abstract:
Thisِ studyِ aimedِ toِ explainِ andِ clarifyِ theِ importantِ ofِ usingِ
accountingِ informationِ inِ decisionِ makingِ process,ِ toِ meetِ theِ requested
administrativeِ needsِ toِ rationalizeِ theِ administrativeِ decisionsِ ofِ theِ
company.
Theِ twoِ researchersِ inِ collectingِ dataِ dependِ onِ theِ primaryِ
sourcesِ andِ secondaryِ sources,ِ toِ achieveِ theِ goalsِ ofِ theِ studyِ andِ inِ
answeringِ itsِ questions.ِ Throughِ thisِ approachِ theyِ obtainedِ theِ
secondaryِ dataِ whichِ formedِ theِ theoreticalِ frameِ forِ theِ study.ِ
Meanwhileِ theِ practicalِ frameِ dependedِ onِ anِ interviewِ whichِ wasِ
designedِ forِ theِ subjectِ goal.ِ
Theِ studyِ cameِ toِ aِ groupِ ofِ resultsِ andِ recommendations,ِ whichِ
areِ relatedِ toِ explainِ theِ importantِ ofِ usingِ accountingِ informationِ inِ
decisionِ makingِ processِ inِ theِ company,ِ andِ theِ mostِ importantِ points,ِ
are:ِ
1. Thereِ isِ aِ positiveِ relationshipِ betweenِ theِ extentِ ofِ usingِ
accountingِ informationِ inِ decision-makingِ andِ takenِ decision,ِ ifِ
theِ accountingِ informationِ isِ correctِ theِ decisionِ takenِ isِ correct.
2. Errorsِ foundِ inِ theِ informationِ leadsِ toِ errorsِ inِ theِ decisionِ toِ the
detrimentِ theِ interestsِ ofِ theِ company.
3. Managementِ knowsِ theِ roleِ ofِ accountingِ informationِ inِ theِ
rationalizationِ ofِ theِ decisionِ making.
Andِ theِ recommendations:
1. Administrationِ mustِ participateِ allِ theِ departmentsِ inِ theِ
decision-makingِ process.
3
2. Jointِ employeesِ whoِ specializeِ inِ preparingِ financialِ reportingِ
andِ accountingِ informationِ inِ trainingِ coursesِ toِ acquireِ skillsِ
andِ practicalِ experienceِ andِ knowledgeِ ofِ accountingِ
information.
1.2 Introduction:
Accountingِ systemِ representsِ asِ theِ languageِ ofِ businessِ becauseِ
cost,ِ price,ِ salesِ volume,ِ profitsِ andِ returnِ onِ investmentِ areِ allِ
accountingِ measurementsِ andِ theِ purposeِ ofِ accountingِ isِ toِ provideِ
informationِ thatِ isِ usefulِ forِ decisionِ making.1ِ
Manyِ differentِ usersِ haveِ needِ forِ accountingِ informationِ inِ order
toِ makeِ importantِ decisions.ِ Theseِ usersِ includeِ investors,ِ creditors,ِ
management,ِ governmentalِ agencies,ِ laborِ unions,ِ andِ others.ِ
Whereِ managementِ inِ allِ differentِ levelsِ needsِ thisِ informationِ toِ
performِ itsِ administrativeِ functionsِ forِ planning,ِ coordination,ِ directing,ِ
controllingِ andِ decision-making.
Theِ primaryِ roleِ ofِ accountingِ informationِ isِ toِ provideِ usefulِ
informationِ forِ decisionِ makingِ purposes,ِ itِ sometimesِ emphasizeِ thatِ
accountingِ isِ notِ anِ end,ِ butِ ratherِ itِ isِ aِ meansِ toِ anِ end,ِ withِ theِ endِ
beingِ theِ decisionِ thatِ isِ helpedِ byِ theِ availabilityِ ofِ accountingِ
information.2
Theِ finalِ productِ ofِ accountingِ informationِ isِ theِ decisionِ thatِ
enhancedِ byِ theِ useِ ofِ accountingِ information.
Accountingِ informationِ isِ oneِ ofِ ِ keyِ elementsِ thatِ playِ anِ
importantِ roleِ inِ decisionِ makingِ processِ thatِ contributeِ ofِ theِ successِ
ofِ economicِ activityِ andِ improvingِ theِ administrativeِ performance,ِ
whereِ theِ managementِ inِ allِ differentِ levelsِ needsِ forِ thisِ informationِ to
performِ itsِ administrativeِ functionsِ ofِ planning,ِ coordination,ِ directing,ِ
1
ِ Williams,ِ J.ِ &ِ etِ al,ِ (2007),ِ P.28.
2
ِ Williams,ِ J.ِ &ِ etِ al,ِ (2007),ِ P.5.
4
controllingِ andِ decision-making.ِ Thereِ ِ isِ noِ doubtِ thatِ theِ accountingِ
systemِ isِ theِ mainِ sourceِ forِ thisِ information,ِ becauseِ theِ accountingِ
systemِ providesِ theِ financialِ reportِ thatِ includeِ theِ accountingِ
informationِ thatِ presentِ theِ financialِ activitiesِ ofِ theِ companyِ duringِ aِ
certainِ period.
Accountingِ informationِ isِ usefulِ inِ theِ performanceِ ofِ allِ
administrativeِ activities,ِ whereِ theِ administrationِ becomesِ moreِ efficient
whenِ theِ accountantsِ providesِ accurateِ andِ completeِ ِ informationِ forِ the
management,ِ andِ basedِ onِ thisِ informationِ theِ decisionِ isِ made,ِ inِ order
toِ theِ accountingِ informationِ beِ usefulِ thereِ isِ someِ criteriaِ andِ
characteristicsِ mustِ beِ availableِ inِ theseِ information.
Theِ majorِ benefitsِ ofِ informationِ areِ aِ reductionِ ofِ uncertainty,ِ
improvedِ decisionِ andِ betterِ abilityِ toِ planِ andِ scheduleِ activities.1
Thisِ studyِ wasِ conductedِ onِ serviceِ sectorِ inِ Gazaِ stripِ whichِ
representedِ ofِ Jawwalِ Company:
Jawwalِ startedِ fromِ Palestinianِ landِ asِ theِ firstِ providerِ forِ cellِ
communicationِ servicesِ toِ connectِ Palestinianِ partsِ toِ eachِ otherِ andِ toِ
theِ world,ِ weِ couldِ sayِ thatِ nowِ itِ deservesِ toِ occupyِ theِ leadingِ
positionِ inِ Palestinianِ markets,ِ despiteِ ofِ allِ political,ِ economicِ andِ
socialِ challenges,ِ alsoِ becauseِ ofِ theِ highِ qualityِ ofِ itsِ servicesِ andِ theِ
bigِ attentionِ toِ theirِ economicِ statusِ inِ theِ marketِ andِ theِ importanceِ ofِ
itsِ decisions.
Theِ twoِ researchersِ chooseِ Palestineِ Cellularِ Communicationsِ
Companyِ "Jawwal"ِ asِ aِ sampleِ ofِ serviceِ sector.
1
Romney.ِ Mِ &ِ Steinbart.ِ P,ِ (2008),ِ Pِ 5.ِ
5
1.3 Research Problem:
Theِ presenceِ ofِ manyِ disordersِ andِ managerialِ problemsِ withinِ
theِ organizationsِ inِ theِ Gazaِ Stripِ Whichِ causedِ someِ majorِ managerialِ
irregularitiesِ thatِ occurِ asِ aِ resultِ ofِ theِ administrativeِ rightِ notِ toِ relyِ
onِ accountingِ informationِ orِ theِ lackِ ofِ qualityِ ofِ accountingِ
informationِ usedِ inِ decision-makingِ processِ andِ non-suitabilityِ ofِ theِ
resolution.
1.4 Research Objectives:

Theِ mainِ objectiveِ ofِ thisِ studyِ isِ toِ constructِ anِ empiricalِ studyِ
ofِ theِ useِ ofِ accountingِ informationِ inِ theِ decisionsِ makingِ processِ onِ
Jawwalِ Company.
In addition, the two researchers aim to achieve several objectives:
1.ِ Determineِ theِ significanceِ ofِ theِ useِ ofِ accountingِ informationِ inِ
decisionِ makingِ process.
2.ِ Toِ clarifyِ theِ propertiesِ thatِ mustِ beِ providedِ inِ theِ accountingِ
informationِ usedِ inِ decisionِ makingِ process.
3.ِ Makeِ recommendationsِ toِ theِ companyِ aboutِ theِ importanceِ ofِ theِ
useِ ofِ accountingِ informationِ inِ decision-making
1.5 Significance of the research:

Theِ importanceِ ofِ researchِ liesِ inِ theِ vitalityِ andِ importanceِ ofِ
subject,ِ becauseِ itِ isِ effectiveِ andِ veryِ importantِ forِ managementِ inِ allِ
differentِ levelsِ becauseِ theyِ needِ accountingِ informationِ forِ decision-
makingِ process,ِ Whereِ theِ decision-makingِ processِ occupiesِ aِ greatِ
importanceِ forِ allِ organizationsِ managers,ِ thisِ isِ becauseِ theِ experienceِ
6
isِ notِ sufficientِ toِ makeِ rationalِ decisions,ِ Becauseِ ofِ thisِ thereِ isِ mustِ
beِ aِ balanceِ betweenِ theِ accountingِ informationِ andِ decision-makingِ
process,ِ Fromِ hereِ theِ importanceِ ofِ researchِ becomeِ clearِ toِ proveِ theِ
roleِ ofِ accountingِ informationِ inِ makingِ rationalِ decisions,ِ thisِ couldِ
leadِ toِ theِ efficientِ functioningِ ofِ theِ companyِ andِ itsِ success.
1.6 Scope and limitations of the research:
1. Subjectِ ofِ theِ studyِ isِ limitedِ toِ clarifyِ theِ importanceِ ofِ usingِ
accountingِ informationِ inِ decision-makingِ process.
2. Theِ studyِ willِ appliedِ onِ Jawwalِ Companyِ inِ Gazaِ stripِ inِ
Palestine.
3. Theِ studyِ willِ takeِ placeِ fromِ 25thِ Juneِ toِ 23rdِ august,ِ andِ itِ isِ aِ
shortِ period,ِ toِ completeِ thisِ research.
1.7 Research hypotheses:
First Hypothesis:
Relyingِ onِ financialِ reportِ toِ obtainِ theِ accountingِ informationِ
whichِ isِ necessaryِ forِ decision-makingِ process.
Second Hypothesis:
Accountingِ informationِ includesِ allِ theِ requiredِ characteristicsِ
thatِ requiredِ forِ decisionِ making.
Third Hypothesis:
Theِ managersِ useِ theِ accountingِ informationِ thatِ availableِ inِ
decision-making.
Fourth Hypothesis:
Decisionِ makersِ haveِ theِ abilityِ toِ useِ theِ accountingِ information.
Fifth Hypothesis:
Accountingِ informationِ contributesِ inِ theِ qualityِ andِ effectiveness
ofِ administrativeِ decisions.
7
1.8 Research methodology:
Theِ twoِ researchersِ willِ useِ theِ descriptiveِ analyticalِ approachِ toِ
completeِ theِ studyِ whichِ dependsِ onِ describingِ andِ demonstrateِ theِ
importanceِ ofِ useِ theِ accountingِ informationِ inِ decision-makingِ
process.
Sources to collect information:

1.ِ Primaryِ sources:
ِ ِ ِ ِ ِ ِ ِ •ِ Previousِ researches.
ِ ِ ِ ِ ِ ِ ِ •ِ Relatedِ websites.
2.ِ Secondaryِ sources:
ِ ِ ِ ِ ِ ِ •ِ Relatedِ books.
ِ ِ ِ ِ ِ ِ •ِ Magazinesِ andِ periodicals.
1.9 Related works:

1.9.1 Arabic reference:
1. Jaafar, Abdul Ilah study:
(Accountingِ informationِ systemsِ andِ itsِ impactِ onِ theِ jobِ
decision-makingِ inِ theِ healthِ servicesِ sector).
Theِ studyِ aimedِ toِ strengthenِ theِ foundationsِ theِ relationshipِ
betweenِ theِ designِ ofِ accountingِ informationِ systemsِ andِ theirِ roleِ inِ
supportingِ decisionsِ aboutِ practiceِ activityِ andِ toِ improveِ workingِ
conditionsِ inِ theِ healthِ servicesِ sector.
Accordingِ toِ theِ studyِ toِ emphasizeِ thatِ theِ accountingِ
informationِ systemِ isِ oneِ ofِ theِ mostِ importantِ tributariesِ ofِ theِ
managementِ informationِ systemِ toِ serveِ theِ decision-makingِ processِ inِ
8
itsِ variousِ dimensionsِ andِ toِ linkِ thisِ objectiveِ characteristicsِ andِ
attributesِ ofِ theِ healthِ servicesِ sectorِ inِ general,ِ inِ orderِ toِ buildِ theِ
consolidatedِ databaseِ toِ provideِ informationِ forِ theِ exploitationِ ofِ theِ
resourcesِ availableِ toِ thisِ sectorِ andِ theِ supremeِ bodyِ overseeingِ theِ
hospitalsِ andِ clinicsِ toِ theِ Centralِ Peopleِ rationalizeِ theirِ decisionsِ forِ
theِ developmentِ ofِ systemsِ toِ provideِ healthِ servicesِ toِ theِ citizensِ forِ
theِ betterِ andِ atِ theِ lowestِ possibleِ cost.
1.9.2 Foreign References

1. Dumitrana, Radu & et al (2008):
(Theِ useِ ofِ theِ accountingِ informationِ inِ decisionِ makingِ inِ theِ
hospitalityِ business).
Theِ studyِ aimedِ toِ analysisِ theِ accountingِ informationِ inِ
hospitalityِ business,ِ toِ knowِ howِ financialِ transactionsِ affectِ
performanceِ andِ financialِ position,ِ howِ toِ provideِ financialِ informationِ
forِ externalِ usersِ andِ howِ resourcesِ wereِ used.
Theyِ suggestedِ thatِ aِ hospitalityِ managerialِ accountingِ mustِ beِ
organizedِ toِ provideِ informationِ forِ planningِ alternativeِ shortِ orِ longِ
termِ coursesِ ofِ actionِ andِ toِ decideِ theِ bestِ courseِ ofِ actionِ toِ beِ
implementedِ andِ withoutِ management’sِ understandingِ ofِ theِ
informationِ beingِ provided,ِ management’sِ effectivenessِ willِ beِ greatlyِ
reducedِ andِ itِ isِ necessaryِ theِ organizationِ ofِ aِ managerialِ accountingِ
systemِ toِ analyzeِ theِ performanceِ ofِ eachِ departmentِ andِ toِ decideِ howِ
toِ increaseِ theِ profitِ andِ theِ qualityِ ofِ allِ services.
Theِ studyِ foundِ thatِ accountingِ systemِ andِ especiallyِ managerialِ
accountingِ provideِ usefulِ informationِ forِ decisionِ making.
ِ Informationِ isِ theِ productِ ofِ accountingِ andِ thatِ meansِ thatِ theِ
qualityِ ofِ accountingِ informationِ influencesِ theِ qualityِ ofِ decisionalِ
processِ thatِ willِ influenceِ theِ customers’ِ satisfaction,ِ theِ developmentِ of
9
accountingِ informationِ toِ supportِ marketingِ decisionsِ makingِ inِ hotelsِ
offersِ opportunitiesِ toِ improveِ theِ qualityِ ofِ decisionsِ made.
Theِ studyِ recommendsِ theِ developmentِ ofِ knowledgeِ inِ orderِ toِ
maximizeِ theِ resourcesِ availableِ toِ hotelِ managers.ِ Theِ focusِ ofِ thisِ
paperِ isِ thusِ theِ applicationِ ofِ knowledgeِ toِ developِ appropriateِ
accountingِ informationِ forِ managersِ inِ hotelsِ makingِ marketingِ
decisions.
2. Sharayri & Momani study (2011):

ِ (Theِ Impactِ ofِ Reliabilityِ andِ Relevanceِ ofِ Financialِ Position
Informationِ onِ Decisionِ Making).
Theِ studyِ aimedِ toِ achieveِ theseِ objectives:

1. Recognizingِ theِ impactِ ofِ relevanceِ propertyِ ofِ theِ balanceِ sheetِ
onِ decisionِ making.
2. Recognizingِ theِ impactِ ofِ reliabilityِ propertyِ ofِ theِ balanceِ sheetِ
onِ decisionِ making.
3. Recognizingِ theِ impactِ ofِ balanceِ sheet’sِ informationِ onِ decisionِ
making.
Theِ studyِ dealsِ withِ twoِ propertiesِ ofِ theِ balanceِ sheet’s;ِ reliabilityِ
andِ relevance,ِ asِ wellِ asِ theirِ relationِ toِ theِ decisionِ makingِ inِ
Jordanianِ Electricِ Companies.
Aِ questionnaireِ hasِ particularlyِ beenِ preparedِ forِ thisِ purposeِ andِ
distributedِ onِ theِ studyِ sampleِ toِ answerِ theِ researchِ questionsِ andِ
hypothesesِ inِ orderِ toِ completeِ theِ study.
ِ
The researchers found that:
1.ِ Theِ degreeِ ofِ reliabilityِ andِ relevanceِ ofِ theِ financialِ positionِ
statementِ isِ highِ inِ Jordanianِ Electricِ Companies.
10
2.ِ Reliabilityِ andِ relevanceِ ofِ theِ financialِ positionِ informationِ
influenceِ decisionِ making.ِ ِ
The researchers provide some recommendationsِ suchِ asِ theِ necessityِ
ofِ guidingِ theِ administrationِ ofِ theِ companyِ regardingِ takingِ intoِ
considerationِ theِ reliabilityِ andِ relevanceِ ofِ theِ balanceِ sheet,ِ whichِ areِ
theِ mostِ importantِ meansِ toِ developِ decisionِ makingِ andِ thereforeِ toِ
renderِ theِ companyِ aِ success.
Finally,ِ Throughِ aِ reviewِ ofِ previousِ studies,ِ theِ researcherِ believesِ
thatِ theِ previousِ studiesِ gatheredِ onِ theِ importanceِ ofِ accountingِ
informationِ inِ decision-making,ِ studiesِ agreeِ inِ addressingِ theِ
accountingِ informationِ asِ theِ baseِ ofِ makingِ decisions.
1.10 Time table and budget:

Theِ researchِ hasِ aِ timeِ limit;ِ itِ shouldِ beِ doneِ inِ nineِ weeks.ِ The
followingِ chartِ describesِ theِ wayِ weِ willِ spentِ theِ researchِ time.
Tableِ 1.1ِ timeِ table
July
August
June
Activity
Week Number 1 2 3 4 5 6 7 8 9
Generateِ Topic
Readِ booksِ andِ relatedِ researches
Writingِ researchِ proposal
Literatureِ review
Interview
Summarizeِ theِ interview
Resultsِ &ِ recommendations
Discussionِ theِ Search
11
Theِ estimatedِ researchِ budgetِ couldِ beِ 300ِ NIS.ِ Thisِ budgetِ willِ be
spentِ onِ copying,ِ typingِ andِ otherِ expensesِ relatedِ toِ thisِ research.
Chapterِ -2-
12
Literature
review
13
Sectionِ -1-ِ
Accounting
and
14
accounting
information
2.1.1 Introduction:
Inِ business,ِ accountingِ systemِ playِ aِ veryِ importantِ roleِ inِ theِ
companiesِ andِ theِ successِ ofِ anyِ companyِ dependsِ onِ theِ performanceِ
ofِ theِ company'sِ accountants,ِ becauseِ theِ administrationِ basedِ onِ theِ
accountingِ informationِ inِ makingِ itsِ decisionsِ thatِ producedِ byِ theِ
accountingِ system.ِ Therefore,ِ accountingِ informationِ hasِ aِ greatِ
importanceِ inِ anyِ company.
Inِ thisِ chapterِ theِ twoِ researchersِ willِ talkِ brieflyِ aboutِ
accounting,ِ butِ theyِ willِ focusِ moreِ onِ theِ accountingِ informationِ
(definition,ِ characteristics,ِ sourcesِ andِ usersِ ofِ accountingِ information).
2.1.2 What is accounting?
Accountingِ isِ concernedِ withِ collecting,ِ analyzingِ andِ

communicatingِ financialِ information.ِ Theِ purposeِ isِ toِ helpِ peopleِ thatِ
useِ thisِ informationِ toِ makeِ moreِ informedِ decisions.ِ Ifِ theِ financialِ
informationِ thatِ isِ communicatedِ isِ notِ capableِ ofِ improvingِ theِ qualityِ
15
ofِ decisionsِ made,ِ thereِ wouldِ beِ noِ pointِ inِ producingِ it.ِ Sometimesِ
theِ impressionِ isِ givenِ thatِ theِ purposeِ ofِ accountingِ isِ simplyِ toِ
prepareِ financialِ reportsِ onِ aِ regularِ basis.
.
Whileِ itِ isِ trueِ thatِ accountantsِ undertakeِ thisِ kindِ ofِ work,ِ itِ
doesِ notِ representِ anِ endِ inِ itself.ِ Theِ ultimateِ purposeِ ofِ theِ
accountant‘sِ workِ isِ toِ giveِ peopleِ betterِ financialِ informationِ onِ whichِ
toِ baseِ theirِ decisions.1
2.1.3 Uses of accounting:2+3

1. Accountingِ providesِ aِ vitalِ serviceِ byِ supplyingِ theِ
informationِ decisionِ makersِ needِ toِ makeِ reasonedِ choicesِ
amongِ theِ alternativeِ usesِ ofِ scarceِ resourcesِ inِ theِ conductِ ofِ
businessِ andِ economicِ activities.
2. Accountingِ helpsِ onِ makingِ decisionsِ concerningِ moreِ rational
acquisitionِ ofِ limitedِ resourcesِ throughِ betterِ decisionِ choices.
3. Accountingِ helpsِ forِ efficientِ useِ ofِ availableِ resourceِ throughِ
promptِ detectionِ ofِ inefficiencies.
4. Accountingِ helpsِ forِ moreِ equitableِ distributionِ ofِ resources.
5. Accountingِ helpsِ toِ makeِ policyِ decisionsِ relatingِ toِ changeِ in
theِ system.
6. Accountingِ helpsِ dischargeِ ofِ theِ socialِ responsibilitiesِ ofِ theِ
businessِ andِ industry.
7. Accountingِ Providesِ accountingِ informationِ toِ theِ Government
forِ takingِ decisionsِ onِ exciseِ duties,ِ salesِ taxesِ etc.
1
ِ Artill,ِ P.ِ &ِ Mclaney,ِ E.ِ (2005).
2
ِ http://answers.yahoo.com/question/index?qid=20070616052244AA2bHOV
3
ِ http://accountlearning.blogspot.com/2009/10/objectives-of-accounting.html
16
8. Evaluationِ ofِ financialِ performanceِ byِ managers,ِ inventors,ِ
creditors,ِ governmentِ agencies,ِ analystsِ andِ otherِ users.
9. Planningِ andِ controlِ ofِ internalِ operationsِ byِ decisionِ makers.
2.1.4 Accounting as a service activity?

Oneِ wayِ ofِ viewingِ accountingِ isِ asِ aِ formِ ofِ service,ِ accountants
provideِ economicِ informationِ toِ theirِ client,ِ whoaِ areِ theِ variousِ usersِ
ofِ accountingِ information.
Theِ qualityِ ofِ theِ serviceِ providedِ wouldِ beِ determinedِ byِ theِ
extentِ toِ whichِ theِ informationِ needsِ ofِ theِ variousِ userِ groupsِ haveِ
beenِ met.ِ Itِ canِ beِ arguedِ that,ِ toِ beِ useful,ِ accountingِ informationِ
shouldِ possessِ certainِ keyِ qualities,ِ orِ characteristics.
2.1.5 Accounting as an Information System:1
Accountingِ isِ anِ informationِ systemِ thatِ measures,ِ processes,ِ andِ
communicatesِ financialِ informationِ aboutِ anِ economicِ entity;ِ anِ
economicِ entityِ isِ aِ unitِ thatِ existsِ independently,ِ suchِ asِ aِ business,ِ aِ
hospital,ِ orِ aِ governmentalِ body.ِ
Accountantsِ focusِ onِ theِ needsِ ofِ decisionِ makersِ whoِ useِ
financialِ information,ِ whetherِ thoseِ decisionِ makersِ areِ insideِ orِ outside
aِ businessِ orِ otherِ economicِ entity.ِ Accountantsِ provideِ aِ vitalِ serviceِ
byِ supplyingِ theِ informationِ decisionِ makersِ needِ toِ makeِ “reasonedِ
choicesِ amongِ alternativeِ usesِ ofِ scarceِ resourcesِ inِ theِ conductِ ofِ
businessِ andِ economicِ activities.”ِ Asِ shownِ inِ Figureِ 2.1,ِ accountingِ isِ
aِ linkِ betweenِ businessِ activitiesِ andِ decisionِ makers.
2
.Figure: 2.1.1 Accounting as Information System
1
http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdfِ
2
ِ http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf
17
BusinessActivities
Activities Action
Action DecisionMakers
Makers
Business Decision
Data
Data Information
Information
Accounting
Accounting
Measurement
Measurement Processing
Processing Communication
Communication
2.1.6 What is accounting information?

Thereِ areِ manyِ definitionsِ forِ accountingِ information:
1. Accounting information:ِ itِ isِ theِ dataِ thatِ haveِ beenِ processedِ
properlyِ toِ giveِ aِ fullِ meaningِ andِ canِ beِ usedِ inِ ongoingِ
operationsِ andِ futureِ decision-making.1ِ ِ
2. Accounting information:ِ allِ quantitativeِ andِ nonِ quantitativeِ
informationِ thatِ concernِ withِ theِ economicِ eventsِ thatِ areِ
processedِ andِ reportedِ byِ informationِ systemِ inِ theِ financialِ
statementsِ thatِ presentedِ toِ externalِ andِ internalِ users.2
All these definitions can be collected in one definition which is:
Accounting information:ِ isِ theِ dataِ thatِ haveِ beenِ organizedِ andِ
processedِ byِ accountingِ systemِ toِ provideِ aِ fullِ meaningِ toِ users.3
Accountingِ informationِ reflectsِ theِ eventsِ andِ factsِ thatِ relatedِ toِ
theِ financialِ andِ accountingِ aspectِ ofِ theِ company,ِ andِ itِ isِ representِ the
1
ِ Shubair,Ahmed,(2006).
2
ِ Alhubaity,ِ K.,ِ &ِ Alsaqah,ِ Z.ِ (2003),ِ pageِ 27.
3
ِ Romeny,ِ Mِ &ِ Steinbart.ِ P,ِ (2008),ِ pageِ 5.
18
finalِ productِ ofِ theِ accountingِ systemِ becauseِ theِ mainِ purposeِ ofِ
accountingِ systemِ isِ toِ provideِ theِ necessaryِ informationِ forِ decisionِ
makers.
2.1.7 Qualitative characteristics of accounting information:1

Theِ IFRSِ identifiedِ theِ qualitativeِ characteristicsِ ofِ accountingِ
informationِ thatِ distinguishِ betterِ (moreِ useful)ِ informationِ fromِ
inferiorِ (lessِ useful)ِ informationِ forِ decisionِ makingِ purposes.
Asِ shownِ inِ figureِ 2.2,ِ qualitativeِ characteristicsِ areِ eitherِ
fundamentalِ orِ enhancingِ characteristics,ِ dependingِ onِ howِ theyِ affectِ
theِ decisionِ usefulnessِ ofِ information.ِ Regardlessِ ofِ classification,ِ eachِ
qualitativeِ characteristicِ contributesِ toِ theِ decisionِ usefulnessِ ofِ
financialِ reportingِ information.
ِ Figure: 2.1.2 Qualitative characteristics of accounting information.2
Decision usefulness
Relevance Faithful representation
Predictive Confirmatory Free from

value value Completeness Neutralit error
y
Comparability Verifiability Timeliness Understandability
2.7.1 Fundamental Qualities:
A. Relevance:
1
ِ Kieso,ِ D.ِ &ِ etِ al.ِ (2011),ِ pagesِ 43,ِ 44,ِ 45,ِ 46,ِ andِ 47.
2
ِ Kieso,ِ D.ِ &ِ etِ al.ِ (2011),ِ pageِ 44.
19
Relevanceِ isِ oneِ ofِ theِ twoِ fundamentalِ qualitiesِ thatِ makeِ
accountingِ informationِ usefulِ forِ decisionِ making,ِ relevanceِ andِ relatedِ
ingredientsِ ofِ thisِ fundamentalِ qualityِ areِ shownِ below.
Figure: 2.1.3 Fundamental Qualities (Relevance).1
Relevance
Relevance
Predictivevalue
Predictive value Confirmatoryvalue
Confirmatory value
Toِ theِ accountingِ informationِ beِ relevant itِ mustِ beِ appropriateِ
andِ convenientِ forِ decisionِ makers,ِ andِ thisِ propertyِ canِ beِ achievedِ byِ
knowingِ theِ extentِ ofِ theِ benefitِ ofِ usingِ accountingِ informationِ byِ
decisionِ makers,ِ whenِ thisِ informationِ helpِ toِ reduceِ theِ alternativesِ
andِ chooseِ theِ bestِ alternativeِ whichِ representsِ theِ optimalِ decision,ِ
accountingِ informationِ isِ capableِ ofِ makingِ aِ differenceِ inِ aِ decisionِ
whenِ itِ hasِ predictiveِ value,ِ confirmatoryِ valueِ orِ both.
1. Predictive value:
Accountingِ informationِ hasِ theِ abilityِ toِ achieveِ theِ benefitِ fromِ
usingِ itِ inِ theِ predictiveِ decisionِ andِ expectationِ aboutِ theِ future.
2. Confirmatory value:
Relevantِ informationِ alsoِ helpsِ usersِ confirmِ orِ correctِ priorِ
expectations.
B.ِ Faithful representation:
1
20
Faithfulِ representationِ isِ theِ secondِ fundamentalِ qualityِ thatِ
makesِ accountingِ informationِ usefulِ forِ decisionِ making.ِ Faithfulِ
representationِ andِ relatedِ ingredientsِ ofِ thisِ fundamentalِ qualityِ areِ
shownِ below.
Figure: 2.1.4 Fundamental Qualities (Faithful Representation).1
ِ
ِ Faithful representation
Completeness Neutrality Free from error
Faithfulِ representationِ meansِ thatِ theِ numberِ andِ descriptionsِ

matchِ whatِ reallyِ existedِ orِ happened,ِ itِ isِ necessaryِ becauseِ mostِ users
haveِ neitherِ theِ timeِ norِ theِ expertiseِ toِ evaluateِ theِ factualِ contentِ ofِ
theِ information.ِ ِ
1. Completeness:
Allِ informationِ thatِ isِ necessaryِ forِ faithfulِ representationِ isِ
provided,ِ andِ accountingِ informationِ mustِ beِ presentedِ withoutِ
omissionِ ofِ essentialِ information.
2. Neutrality:
Theِ companyِ canِ notِ selectِ informationِ toِ favorِ oneِ setِ ofِ
interestedِ partiesِ overِ another,ِ notِ influenceِ theِ processِ ofِ
obtainingِ theِ informationِ andِ preparationِ theِ informationِ inِ
specificِ formِ toِ serveِ specificِ personِ withoutِ theِ other.ِ Unbiasedِ
informationِ mustِ beِ theِ overridingِ consideration.
3. Free from error:
1
21
Anِ informationِ itemِ thatِ isِ freeِ fromِ errorِ willِ beِ aِ moreِ accurateِ
representationِ ofِ aِ financialِ item.ِ However,ِ Faithfulِ representation
doesِ notِ implyِ totalِ freedomِ fromِ errorِ thisِ becauseِ mostِ financial
reportingِ measuresِ involveِ estimatesِ ofِ variousِ typesِ thatِ
incorporateِ management‘sِ judgment.
C. Enhancing Qualities:
Enhancingِ qualitativeِ characteristicsِ areِ complementaryِ toِ theِ
fundamentalِ qualitativeِ characteristics.ِ Theseِ characteristicsِ distinguishِ
moreِ usefulِ informationِ fromِ lessِ usefulِ information.ِ Enhancingِ
characteristicsِ areِ shownِ below.
Figure: 2.1.5 Enhancing Qualities.1
1. Comparability:
Informationِ thatِ measuredِ andِ reportedِ inِ aِ similarِ mannerِ forِ
differentِ companiesِ isِ consideredِ comparable,ِ comparabilityِ
enableِ usersِ toِ identifyِ theِ realِ similaritiesِ andِ differencesِ inِ
economicِ eventsِ betweenِ companiesِ andِ betweenِ theِ fiscalِ periodِ
1
22
andِ otherِ atِ theِ sameِ economicِ entityِ andِ withِ otherِ economicِ
entitiesِ atِ theِ sameِ activity.
2. Verifiability:
Verifiabilityِ occursِ whenِ independentِ measures,ِ usingِ theِ sameِ
method,ِ obtainِ similarِ result,ِ andِ accessِ toِ theِ sameِ resultsِ byِ
moreِ thanِ oneِ person,ِ ifِ weِ notِ useِ theِ sameِ techniquesِ andِ
methodsِ thatِ areِ usedِ toِ measureِ theِ accountingِ information.
3. Timeliness:
Timelinessِ meansِ havingِ informationِ availableِ toِ decisionِ makersِ
beforeِ itِ losesِ itsِ capacityِ toِ influenceِ decision;ِ accountingِ
informationِ mustِ beِ availableِ atِ theِ rightِ timeِ forِ theِ decisionِ
makingِ process.
4. Understandability:
Understandabilityِ isِ enhancedِ whenِ informationِ isِ classified,ِ
characterizedِ andِ presentedِ clearlyِ andِ concisely,ِ andِ itِ isِ theِ
qualityِ ofِ informationِ thatِ letsِ reasonableِ informedِ usersِ seeِ itsِ
significance.
2.1.8 Sources of accounting information:

Accountingِ informationِ comesِ fromِ internalِ sourcesِ inِ theِ
organization,ِ becauseِ theِ accountingِ systemِ inِ theِ organizationِ isِ theِ
sourceِ ofِ theِ accountingِ information,ِ financialِ statementsِ thatِ prepareِ by
theِ accountingِ systemِ includeِ theِ accountingِ informationِ thatِ neededِ byِ
theِ users.
Financial statements:ِ areِ recordsِ thatِ provideِ anِ indicationِ ofِ anِ
individual’s,ِ organizations,ِ orِ business'sِ financialِ position.1
1
ِ http://www.wisegeek.com/what-are-financial-statements.htm
23
Financial position: refersِ toِ aِ company’sِ economicِ resources,ِ
suchِ asِ cash,ِ inventory,ِ andِ buildings,ِ andِ theِ equitiesِ andِ liabilitiesِ
againstِ thoseِ resourcesِ atِ aِ particularِ time.2
There are four basic types of financial statements statement of financial
position, Income statements, statement of cash flow and statement of
retained earning.
2.1.9 Types of financial statements:
1. Statement of financial position:
Itِ presentsِ aِ summaryِ statementِ ofِ theِ firm‘sِ financialِ positionِ atِ a
givenِ pointِ inِ time,ِ theِ statementsِ ofِ financialِ positionِ areِ usedِ toِ
provideِ insightِ intoِ aِ company’sِ assetsِ andِ debtsِ atِ aِ particularِ pointِ inِ
time,ِ andِ provideِ informationِ aboutِ theِ company’sِ shareholderِ equity,ِ
theِ companyِ listsِ itsِ assetsِ onِ theِ leftِ sideِ ofِ theِ balanceِ sheetِ andِ itsِ
debtsِ andِ liabilitiesِ onِ theِ right.
2. Income statements:
Theِ incomeِ statementِ provideِ aِ financialِ summaryِ ofِ theِ firm‘sِ
operatingِ resultsِ duringِ specificِ period,ِ andِ presentِ informationِ
concerningِ theِ revenueِ earnedِ byِ aِ companyِ inِ aِ specifiedِ timeِ period.ِ
Incomeِ statementsِ alsoِ showِ theِ company’sِ expensesِ inِ attainingِ theِ
incomeِ andِ shareholderِ earningsِ perِ share.
3. Statement of cash flow:

Theِ statementِ ofِ cashِ flowِ providesِ aِ lookِ atِ theِ movementِ ofِ
cashِ inِ andِ outِ ofِ aِ company;ِ theseِ financialِ statementsِ includeِ
informationِ fromِ operating,ِ investing,ِ andِ financingِ activities.ِ Theِ cash-
flowِ statementِ canِ beِ importantِ inِ determiningِ whetherِ orِ notِ aِ
companyِ hasِ enoughِ cashِ toِ payِ itsِ bills,ِ handleِ expenses,ِ andِ acquireِ
assets.
2
24
4. Statements retained earnings:
Theِ statementِ ofِ retainedِ earningِ presentsِ theِ changesِ inِ aِ
company'sِ orِ organization’sِ retainedِ earningsِ overِ aِ specificِ periodِ ofِ
time.ِ Theseِ statementsِ showِ theِ beginningِ andِ finalِ balanceِ ofِ retainedِ
earnings,ِ asِ wellِ asِ anyِ adjustmentsِ toِ theِ balanceِ thatِ occurِ duringِ theِ
reportingِ period.ِ Thisِ informationِ isِ sometimesِ includedِ asِ partِ ofِ theِ
balanceِ sheetِ orِ itِ mayِ beِ combinedِ withِ anِ incomeِ statement.ِ However,
itِ isِ frequentlyِ providedِ asِ aِ completelyِ separateِ statement.
2.1.10 Accounting information and user needs:

Inِ orderِ toِ theِ accountingِ informationِ toِ beِ useful,ِ theِ accountantِ
mustِ beِ clearِ aboutِ forِ whomِ theِ informationِ isِ beingِ preparedِ andِ forِ
whatِ purposeِ theِ informationِ willِ beِ used.ِ Thereِ areِ likelyِ toِ beِ variousِ
groupsِ ofِ peopleِ withِ anِ interestِ inِ aِ particularِ organization,ِ inِ theِ senseِ
ofِ needingِ toِ makeِ decisionsِ aboutِ thatِ organization.ِ
Thereِ areِ severalِ userِ groupsِ withِ anِ interestِ inِ theِ accountingِ
informationِ relatingِ toِ aِ business.ِ Theِ majorityِ ofِ theseِ areِ outِ sideِ theِ
businessِ but,ِ nevertheless,ِ theyِ haveِ aِ stakeِ inِ theِ business.ِ Thisِ isِ notِ
meantِ toِ beِ anِ exhaustiveِ listِ ofِ potentialِ users;ِ however,ِ theِ groupsِ
identifiedِ areِ normallyِ theِ mostِ important.1
Accountingِ systemِ preparesِ itsِ financialِ reportِ whichِ includesِ
accountingِ informationِ inِ bothِ internalِ andِ externalِ report.ِ Managementِ
accountingِ dealِ withِ theِ informationِ thatِ isِ neededِ forِ theِ internalِ usersِ
andِ financialِ accountingِ focusِ onِ theِ informationِ thatِ isِ neededِ forِ theِ
externalِ users.
Managerial accounting:
1
ِ Mclaney,ِ E.ِ &ِ Artill,ِ P.ِ (2009).
25
Providesِ internalِ decisionِ makersِ whoِ areِ chargedِ withِ achievingِ theِ
goalsِ ofِ profitabilityِ andِ liquidityِ withِ informationِ aboutِ financing,ِ
investing,ِ andِ operatingِ activities.1
Financial accounting:
Generatesِ reportsِ andِ communicatesِ themِ toِ externalِ decisionِ makersِ soِ
theyِ canِ evaluateِ howِ wellِ theِ businessِ hasِ achievedِ itsِ goals.2
Theِ mostِ importantِ ofِ theseِ groupsِ areِ shownِ inِ Figureِ 2.6.
Figure 2.1.6 Users of accounting information.3
1
2
3
ِ http://simplestudies.com/introduction-to-accounting.html
26
Accounting
Financialِ Managerialِ
Accounting Accounting
Externalِ Usersِ Internalِ Usersِ

ofِ Accountingِ ofِ Accountingِ
Information Information
Shareholder Managemen
s t
Creditors Employer
Agencies Investors
Taxing Owner
authority
Labor
Unions
Supplier
Customer
2.1.11 Users of accounting information:1

A. Internal users:
1
ِ http://www.accounting-tutorial.com/users-accounting-information
27
Partiesِ insideِ theِ reportingِ entityِ orِ companyِ whoِ areِ interestedِ in
accountingِ information.1
Types of internal users include:
1. Management:
Managementِ inِ everyِ levelِ ofِ theِ businessِ fromِ directorِ levelِ toِ
supervisorِ levelِ reliesِ onِ accountingِ informationِ toِ doِ theirِ jobِ properly.ِ
Theyِ allِ useِ theِ sameِ informationِ forِ differentِ purposes.ِ Forِ example,ِ
directorsِ useِ itِ forِ strategicِ purposesِ andِ middleِ managementِ canِ useِ itِ
toِ seeِ ifِ theyِ areِ meetingِ theirِ financialِ targets.
2. Investors:
Investorsِ generallyِ provideِ moneyِ toِ individualِ orِ organizationِ toِ
startِ aِ business.ِ Beforeِ investingِ moneyِ investorsِ generallyِ wantِ toِ
knowِ whetherِ theyِ shouldِ investِ orِ notِ orِ ifِ theyِ wouldِ investِ toِ startِ aِ
businessِ nowِ thenِ howِ muchِ returnِ theyِ willِ getِ fromِ theirِ investment.ِ
Theِ investorsِ willِ decideِ basedِ onِ theِ financialِ accountingِ informationِ
ofِ thatِ business.ِ ِ
3. Employers:
Employersِ useِ accountingِ informationِ forِ theirِ ownِ benefit,ِ
accountingِ informationِ helpِ theِ employeeِ toِ ensureِ theirِ futureِ benefitِ
fromِ theِ companyِ likeِ pension,ِ healthِ provision,ِ retirementِ benefitِ etc.
4. Owners:
Businessِ ownersِ wantِ toِ knowِ whetherِ theirِ fundsِ areِ beingِ
properlyِ usedِ orِ not.ِ Accountingِ informationِ helpsِ themِ toِ knowِ theِ
profitabilityِ andِ theِ financialِ positionِ ofِ theِ concernِ inِ whichِ theyِ haveِ
investedِ theirِ funds.
B. External users:
Partiesِ outsideِ theِ reportingِ entityِ orِ companyِ whoِ areِ interestedِ
inِ theِ accountingِ information.2
1
2
28
Types of external users include:
1. Shareholders:
Shareholdersِ useِ theِ balanceِ sheetِ andِ profitِ andِ lossِ accountِ
producedِ byِ limitedِ companiesِ toِ decideِ ifِ theyِ areِ goingِ toِ increaseِ orِ
decreaseِ theirِ holding.
2. Creditors:
Creditorsِ (lenders)ِ areِ generallyِ focusedِ onِ theِ informationِ whichِ
isِ relatedِ toِ theِ borrowerِ beforeِ makingِ aِ largeِ loanِ suchِ asِ theِ Bankِ
(creditors)ِ willِ wantِ informationِ aboutِ theِ borrowerِ regardingِ someِ
criteria:ِ theِ abilityِ ofِ theِ borrowerِ toِ repayِ theِ loan,ِ theِ amountِ ofِ assets
andِ liabilitiesِ ofِ theِ borrower,ِ evidenceِ ofِ income,ِ taxِ policiesِ andِ soِ on.
Theِ creditorsِ willِ makeِ theِ loanِ afterِ havingِ thisِ detailِ informationِ
throughِ financialِ accountingِ statementِ ofِ theِ borrower.
3. Government Regulatory Agencies:
Governmentِ regulatoryِ agenciesِ likeِ Federalِ andِ Stateِ
Governmentِ Agenciesِ andِ Securityِ andِ exchangeِ commissionِ wantِ
financialِ accountingِ informationِ whichِ isِ relatedِ toِ theِ investors,ِ
businessِ organizationِ orِ anyِ individuals,ِ theseِ regulatoryِ agenciesِ wantِ
theِ informationِ toِ knowِ thatِ whetherِ theِ businessِ organizationِ areِ
followingِ theِ businessِ rulesِ andِ regulationِ orِ notِ orِ whetherِ theِ
investorsِ areِ ableِ toِ investِ orِ makeِ decisionِ orِ not,ِ Securityِ andِ
exchangeِ commissionِ wantِ accountingِ informationِ toِ evaluateِ theِ
financialِ accountingِ disclosuresِ ofِ companiesِ whoِ sellِ theirِ shareِ orِ
borrowِ money.
4. Taxing authority:
Taxingِ authorityِ wantsِ financialِ accountingِ informationِ relatedِ toِ
taxِ policies,ِ taxِ laws,ِ amountِ ofِ payableِ taxِ etc.ِ fromِ theِ individualِ orِ
organization.,ِ taxingِ authorityِ wantsِ financialِ accountingِ toِ knowِ thatِ
29
theِ businessِ organizationِ areِ followingِ taxِ rulesِ orِ notِ andِ theirِ abilityِ to
payِ incomeِ taxِ becauseِ incomeِ taxِ isِ basedِ onِ theِ financialِ accountingِ
reports.ِ ِ
5. Labor unions:
Laborِ unionsِ wantِ accountingِ informationِ toِ knowِ theirِ futureِ
salary.
6. Suppliers:
Suppliersِ wantِ toِ knowِ aboutِ company‘sِ futureِ goalsِ soِ thatِ theyِ
canِ serveِ bestِ materialِ inِ comingِ days.
7. Customers:
Sometimesِ customerِ alsoِ wantِ toِ knowِ aboutِ companyِ onِ issuesِ
likeِ warranty,ِ productِ developmentِ etc.
2.1.12 Purpose of using accounting information:1
1. Measurement:
Accountingِ informationِ isِ aِ measureِ ofِ theِ performanceِ ofِ theِ
companyِ andِ itsِ successِ becauseِ itِ reflectsِ theِ eventsِ andِ theِ financialِ
accountingِ ofِ theِ companyِ andِ showsِ theِ financialِ situationِ ofِ theِ
companyِ atِ aِ certainِ period.
2. Evaluation:
Performanceِ evaluationِ forِ anِ individualِ canِ beِ basedِ onِ
accountingِ informationِ forِ transactionsِ thatِ wereِ underِ thatِ person'sِ
control.ِ Forِ example,ِ aِ purchasingِ agentِ mightِ beِ responsibleِ forِ
negotiatingِ pricesِ onِ rawِ materials.ِ Theِ actualِ costِ ofِ purchasesِ madeِ by
thatِ agentِ wouldِ formِ theِ basisِ forِ hisِ evaluation.ِ Theِ localِ managerِ ofِ a
divisionِ mightِ beِ evaluatedِ basedِ onِ theِ profitsِ earnedِ byِ thatِ division.ِ
1
ِ http://www.ehow.com/about_6319335_purpose-producing-accounting-information.html
30
Anِ incomeِ statementِ forِ thatِ divisionِ wouldِ formِ theِ basisِ forِ herِ
evaluation.
3. Communication:
ِ Accountingِ informationِ isِ usedِ toِ communicate.ِ Itِ isِ usedِ toِ
communicateِ financialِ resultsِ toِ externalِ users,ِ suchِ asِ creditorsِ orِ
investors.ِ Creditorsِ useِ theِ informationِ toِ determineِ howِ muchِ creditِ toِ
extendِ toِ theِ company.ِ Investorsِ determineِ whetherِ theyِ wantِ toِ investِ
inِ theِ business.ِ Accountingِ informationِ isِ alsoِ communicatedِ toِ
managersِ andِ employees,ِ whoِ considerِ itِ inِ makingِ decisionsِ forِ futureِ
transactions.
4. Decision-Making:
Accountingِ informationِ canِ beِ usedِ forِ decision-making.ِ Oneِ type
ofِ decisionِ isِ whetherِ aِ companyِ shouldِ makeِ aِ componentِ itself,ِ orِ
purchaseِ theِ partِ fromِ anِ outsideِ supplier.ِ Anotherِ typeِ ofِ decisionِ
wouldِ beِ whetherِ theِ companyِ shouldِ acceptِ aِ specialِ orderِ atِ aِ lowerِ
price.ِ Forِ eitherِ decision,ِ financialِ dataِ mustِ beِ gatheredِ andِ compared.ِ
Accountingِ informationِ isِ reliedِ uponِ toِ makeِ theِ bestِ decision.
31
Sectionِ -2-ِ
Decision
making
process
2.2.1 Introduction:
Theِ decision-makingِ processِ isِ theِ basicِ functionsِ ofِ managementِ
inِ anyِ companyِ becauseِ theِ successِ ofِ anyِ companyِ dependsِ onِ theِ
32
efficiencyِ andِ abilityِ ofِ managersِ toِ makeِ rationalِ andِ correctِ decisionsِ
combinedِ withِ theِ goalsِ andِ objectivesِ ofِ theِ company.
Thisِ chapterِ introducesِ decisionِ andِ decisionِ making,ِ itsِ
definition,ِ levels,ِ types,ِ model,ِ stepsِ andِ theِ groupِ ofِ decisionِ makingِ
andِ itsِ advantagesِ andِ disadvantages,ِ andِ soِ on.
2.2.2 What is decision?

Thereِ areِ manyِ definitionsِ forِ decision,ِ suchِ as:
1. Decision:ِ isِ theِ toolِ thatِ usedِ byِ managementِ toِ enableِ itِ toِ performِ
itsِ functionsِ andِ completeِ allِ activitiesِ thatِ assignedِ toِ it.1
2. Decision:ِ isِ theِ wayِ toِ moveِ yourِ businessِ toِ achieveِ allِ tasksِ andِ
goalsِ andِ theِ managementِ mustِ putِ usefulِ factorsِ andِ options,ِ andِ
determineِ theirِ importanceِ andِ priorityِ inِ rightِ way.2ِ
3. Decision:ِ theِ actِ ofِ deciding,ِ actِ ofِ settlingِ orِ terminating,ِ asِ aِ ِ ِ ِ ِ
controversy,ِ byِ givingِ judgmentِ onِ theِ matterِ atِ issue,ِ determination,ِ
asِ ofِ aِ questionِ orِ doubt,ِ settlement,ِ conclusion.3
Decision is:
Aِ choiceِ madeِ betweenِ alternativeِ coursesِ ofِ actionِ inِ aِ situationِ
ofِ uncertainty.4
2.2.3 Definition of decision making:

Thereِ areِ manyِ definitionsِ forِ decisionِ making,ِ suchِ as:
1
ِ Kanaan,ِ Nawaf.ِ (1998),ِ Pageِ 75.
2
ِ El-ِ Amri,ِ Mohammed,ِ (2011).
3
ِ http://www.brainyquote.com/words/de/decision151695.html
4
ِ http://www.businessdictionary.com/definition/decision.html
33
1. Decision making:ِ Makingِ choicesِ amongِ alternativeِ coursesِ ofِ
action,ِ includingِ inaction.1
2. Decision making:ِ Itِ isِ theِ studyِ ofِ identifyingِ andِ choosingِ
alternativesِ basedِ onِ theِ valuesِ andِ preferencesِ ofِ theِ decisionِ
makers.2
3. Decision making:ِ Itِ isِ theِ processِ ofِ sufficientlyِ reducingِ uncertainty
andِ doubtِ aboutِ alternativesِ toِ allowِ aِ reasonableِ choiceِ toِ beِ madeِ
fromِ amongِ them.3
Decision making:ِ isِ theِ processِ ofِ makingِ a choice betweenِ aِ

numbersِ ofِ optionsِ andِ committingِ toِ aِ futureِ courseِ ofِ actions.4
The following is an explanation about the key parts of the definition:
Process:
Decisionِ makingِ isِ aِ processِ whichِ includesِ aِ combinationِ ofِ
manyِ stagesِ thatِ leadِ toِ effectiveِ outcomes.ِ Thisِ processِ canِ beِ veryِ
simpleِ inِ someِ areasِ butِ inِ another,ِ especiallyِ inِ business,ِ itِ mayِ beِ
moreِ complex.ِ Thereِ areِ manyِ stepsِ whichِ canِ helpِ youِ toِ produceِ aِ
goodِ decision.
Choices:
Toِ makeِ decision,ِ youِ willِ probablyِ relyِ onِ numbersِ ofِ inputsِ
suchِ asِ yourِ ownِ experience,ِ knowledge,ِ commonِ senseِ andِ judgment.ِ
Choicesِ areِ madeِ withinِ constrainsِ whichِ provideِ theِ boundariesِ
withinِ whichِ decisionsِ haveِ toِ beِ made.ِ Onِ theِ otherِ hand,ِ theِ goalsِ and
theِ prioritiesِ provideِ usِ withِ theِ shapeِ ofِ theseِ choices.
1
ِ Ireland,ِ R.ِ D.,ِ &ِ Miller,ِ C.ِ (2004).ِ Pagesِ ِ 8-12.
2
ِ Harris,ِ Robert.ِ (2009ِ ),"ِ Introductionِ toِ Decisionِ Making".
3
ِ Harris,ِ Robert.ِ (2009ِ ),"ِ Introductionِ toِ Decisionِ Making".
4
ِ http://www.the-happy-manager.com/definition-of-decision-making.html
34
Thereforeِ goalsِ andِ objectivesِ mustِ beِ clearِ forِ makingِ betterِ
choices.ِ Sometimes,ِ yourِ decisionsِ mayِ requireِ moreِ thanِ oneِ object,ِ soِ
youِ willِ needِ toِ analyzeِ andِ chooseِ theِ suitable.
Makingِ aِ decisionِ isِ controlledِ byِ manyِ constraintsِ whichِ forceِ
youِ toِ rangeِ betweenِ whatِ youِ reallyِ wantِ andِ whatِ canِ actuallyِ beِ
done.ِ But if there are no constraints, is it easier to choose?!
Options:
Allِ successfulِ decisionِ makingِ shouldِ dependsِ onِ aِ sufficientِ
optionsِ whichِ leadِ youِ toِ reachِ yourِ goals.
Theِ firstِ stepِ ofِ decisionِ makingِ involvesِ whereِ youِ areِ andِ
whereِ youِ wantِ toِ go,ِ andِ thenِ generateِ optionsِ toِ showِ youِ howِ toِ getِ
there.
Makingِ decisionِ withoutِ usingِ sufficientِ optionsِ makesِ yourِ
choiceِ becomeِ stifled.ِ Briefly,ِ No options means no decision to make!!
Actions:
Theِ mostِ importantِ elementِ ofِ theِ definition,ِ itِ givesِ theِ meaningِ
toِ theِ decision.ِ Decisionِ makingِ meansِ lookingِ forwardِ andِ reachingِ the
goalsِ byِ actions.
Thisِ definitionِ canِ helpِ youِ toِ selectِ theِ mostِ appropriateِ actionsِ
withِ theِ leastِ costِ andِ theِ mostِ advantages.
Theِ consequencesِ ofِ theِ actionsِ are:ِ intendedِ andِ unintended,ِ theseِ
consequencesِ canِ determineِ yourِ objectives,ِ soِ youِ shouldِ considerِ theِ
positiveِ andِ theِ negativeِ effectsِ whichِ mightِ resultِ fromِ yourِ decisions.
Thenِ yourِ roleِ isِ toِ putِ aِ planِ inِ orderِ toِ limitِ theِ badِ resultsِ andِ
capitalizeِ onِ favorableِ consequences.
Alwaysِ tryِ toِ imagineِ yourِ choiceِ asِ itِ wasِ alreadyِ happenedِ byِ askingِ
yourselfِ aboutِ whatِ areِ theِ consequencesِ mightِ be?!
35
2.2.4 Elements of an Effective Decision Making Process:1
Youِ canِ makeِ moreِ effectiveِ decisionsِ whenِ youِ knowِ whatِ theِ
keyِ elementsِ are,ِ whenِ youِ makeِ importantِ decisions.
These are the five elements of an effective decision making process:
1. Problem rationalization:
Theِ clearِ rationalizationِ thatِ theِ problemِ wasِ genericِ andِ couldِ
onlyِ isِ solvedِ throughِ aِ decisionِ thatِ establishesِ aِ ruleِ orِ aِ principle.ِ
Knowِ theِ problemِ you'reِ solving
2. Boundary conditions:
Theِ definitionِ ofِ theِ specificationsِ thatِ theِ answerِ toِ theِ problemِ
hasِ toِ satisfy,ِ thatِ is,ِ ofِ theِ “boundaryِ conditions”ِ Knowِ yourِ rangeِ ofِ
optionsِ thatِ willِ stillِ countِ asِ success.
3. The right thing to do:

Beforeِ youِ decideِ what’sِ feasible,ِ firstِ figureِ outِ whatِ theِ rightِ
thingِ toِ doِ is.
4. Action:
Turnِ decisionsِ intoِ action.
5. Feedback:
Getِ feedbackِ onِ what’sِ workingِ andِ what’sِ not.
2.2.5 Decision making levels:2

Decisionِ makingِ canِ alsoِ beِ classifiedِ intoِ threeِ categoriesِ basedِ
onِ theِ levelِ atِ whichِ theyِ occur.
Three levels of decision have been identified:
1. Strategic:
1
ِ http://sourcesofinsight.com/2009/03/19/5-elements-of-an-effective-decision-making-process/
2
ِ Harris,ِ Robert.ِ (1998),"ِ Planningِ forِ Decisionِ Making".
36
Strategicِ decisionsِ setِ theِ courseِ ofِ organizationِ theyِ areِ theِ
highestِ level;ِ hereِ aِ decisionِ concernsِ generalِ direction,ِ longِ termِ goals,ِ
philosophiesِ andِ values.ِ Theseِ decisionsِ areِ theِ leastِ structuredِ andِ most
imaginative;ِ theyِ areِ theِ mostِ riskyِ andِ ofِ theِ mostِ uncertainِ outcome.
2. Tactical:
Tacticalِ decisionsِ areِ decisionsِ aboutِ howِ thingsِ willِ getِ done,ِ
theyِ supportِ strategicِ decisions,ِ andِ Tacticalِ decisionsِ areِ decisionsِ
aboutِ howِ thingsِ willِ getِ done.ِ Theyِ tendِ toِ beِ mediumِ range,ِ mediumِ
significance,ِ withِ moderateِ consequences.
3. Operational:
Operationalِ decisionsِ areِ decisionsِ thatِ employeesِ makeِ eachِ dayِ
toِ runِ theِ organization,ِ usedِ toِ supportِ tacticalِ decisions;ِ theyِ areِ oftenِ
madeِ withِ littleِ thoughtِ andِ areِ structured,ِ theirِ impactِ isِ immediate,ِ
shortِ term,ِ shortِ range,ِ andِ usuallyِ lowِ cost.ِ Theِ consequencesِ ofِ aِ badِ
operationalِ decisionِ willِ beِ minimal,ِ althoughِ aِ seriesِ ofِ badِ orِ sloppyِ
operationalِ decisionsِ canِ causeِ harm.ِ Operationalِ decisionsِ canِ beِ
preprogrammedِ andِ pre-made.
Importantِ commentِ shouldِ beِ madeِ here.ِ Issuesِ shouldِ beِ

examinedِ andِ decisionsِ shouldِ beِ madeِ atِ allِ ofِ theseِ levels.ِ Ifِ youِ
discoverِ thatِ nearlyِ allِ ofِ yourِ thinkingِ andِ decisionِ makingِ isِ takingِ
placeِ atِ theِ operationalِ level,ِ thenِ youِ areِ probablyِ notِ doingِ enoughِ
strategicِ thinkingِ andِ planning.ِ Asِ aِ resultِ youِ willِ leadِ aِ reactiveِ life,ِ
respondingِ onlyِ toِ theِ forcesِ aroundِ youِ andِ neverِ gettingِ controlِ ofِ
yourِ life,ِ yourِ directionِ orِ yourِ goals.1
1
ِ Harris,ِ Robert.ِ (1998),"ِ Planningِ forِ Decisionِ Making".
37
1
Table 2.2.1 levels of decision making
Levels of
Decision Examples of Decision Who Typically Makes
?Decision
Strategic ?Shouldِ weِ mergeِ withِ anotherِ companyِ - Topِ Managementِ Teams,ِ
Decision ?Shouldِ pursueِ aِ newِ productِ lineِ - CEOsِ ,andِ Boardsِ ofِ
?Shouldِ weِ downsizeِ ourِ organizationِ - Directors
Whatِ shouldِ weِ doِ toِ helpِ facilitateِ employeesِ - Managers

Tactical
Decision ِ fromِ theِ twoِ companies
?Workingِ togetherِ -
ِ Howِ Shouldِ weِ marketِ ِ theِ newِ -
?Productِ line
?Howِ Shouldِ beِ letِ goِ whenِ downsizeِ -
Operational Howِ oftenِ shouldِ Iِ communicateِ withِ myِ newِ ِ - Employeesِ throughoutِ ِ the
Decision ?coworkers organization
Whatِ shouldِ Iِ sayِ toِ customersِ aboutِ outِ newِ ِ -
?product
?Howِ willِ Iِ balanceِ myِ newِ workِ demandsِ -
2.2.6 Types of decision making:

1. Rational decision making:
Thisِ modelِ hasِ theِ advantagesِ thatِ youِ areِ unlikelyِ toِ missِ
alternativesِ orِ importantِ goalsِ orِ criteria.ِ Itِ isِ alsoِ clearِ howِ theِ decision
wasِ reachedِ andِ canِ beِ reviewedِ byِ otherِ independentِ parties.
Theِ drawbacksِ ofِ thisِ modelِ theِ selectionِ criteriaِ mightِ beِ
incompleteِ andِ theِ weightingsِ usedِ mayِ beِ inaccurateِ andِ mayِ beِ doingِ
notِ fullyِ addressِ theِ thingsِ youِ reallyِ careِ about.
2. Bounded rationality decision making:ِ

1
ِ http://www.flatworldknowledge.com/pub/1.0/principles-management-and-orga/7788/63589
38
Isِ theِ ideaِ thatِ inِ decisionِ making,ِ rationalityِ ofِ individualsِ isِ
limitedِ byِ theِ informationِ theyِ have,ِ theِ cognitiveِ limitationsِ ofِ theirِ
minds,ِ andِ theِ finiteِ amountِ ofِ timeِ theyِ haveِ toِ makeِ decisions.
Anotherِ wayِ toِ lookِ atِ boundedِ rationalityِ isِ that,ِ becauseِ
decision-makersِ lackِ theِ abilityِ andِ resourcesِ toِ arriveِ atِ theِ optimalِ
solution,ِ theyِ insteadِ applyِ theirِ rationalityِ onlyِ afterِ havingِ greatlyِ
simplifiedِ theِ choicesِ available.1
3. Intuitive decision making:

Toِ makeِ aِ decisionِ intuitivelyِ theِ personِ orِ groupِ justِ goesِ withِ
theِ optionِ thatِ satisfiesِ theirِ emotionalِ reactionsِ toِ theِ alternatives.
Theِ advantageِ ofِ thisِ typeِ ofِ modelِ isِ thatِ itِ isِ quickِ andِ itِ helpsِ ensureِ
thatِ itِ takesِ intoِ accountِ whatِ youِ reallyِ careِ about.ِ Becauseِ youِ haveِ
positiveِ feelingsِ aboutِ theِ decisionِ youِ willِ beِ wellِ motivatedِ toِ carryِ itِ
out.ِ
Intuitiveِ decisionsِ canِ haveِ someِ seriousِ drawbacks,ِ youِ mightِ
notِ haveِ fullyِ consideredِ allِ theِ alternativesِ andِ thereforeِ haveِ missedِ an
evenِ betterِ solution,ِ andِ youِ mightِ alsoِ haveِ basedِ theِ decisionِ onِ
inaccurateِ orِ incompleteِ information.
4. Creative decision making:

Inِ thisِ typeِ Solutionsِ toِ theِ problemِ areِ notِ clearِ andِ newِ solution
needِ toِ beِ generatedِ andِ youِ haveِ timeِ toِ immerseِ yourselfِ inِ theِ issues.
1
ِ http://en.wikipedia.org/wiki/Bounded_rationality
39
Table 2.2.2 Types of decision making model 1
Decision Making Model Use This Model When
 Informationِ onِ alternativeِ canِ beِ gatheredِ andِ
Rational quantified.
 Theِ decisionِ isِ important.
 Youِ areِ tryingِ toِ maximizeِ yourِ outcome.
 Theِ minimumِ criteriaِ areِ clear.

 Youِ don’tِ haveِ orِ youِ areِ notِ willingِ toِ investِ
Bounded Rationality
muchِ timeِ toِ makingِ theِ decision.
 Youِ areِ notِ tryingِ toِ maximizeِ yourِ outcome.
 Goalsِ areِ unclear.

Intuitive  Thereِ isِ timeِ pressureِ andِ analysisِ paralysis
 Wouldِ beِ costly.
 Youِ haveِ experienceِ withِ theِ problem.
 Solutionsِ toِ theِ problemِ areِ notِ clear.

 Newِ solutionِ needِ toِ beِ generated.
Creative  Youِ haveِ timeِ toِ immerseِ yourselfِ inِ theِ issues.
2.2.7 A decision making model:
1
ِ http://www.flatworldknowledge.com/pub/1.0/principles-management-and-orga/7788/63589
40
Whichِ describesِ theِ seriesِ ofِ stepsِ thatِ decisionِ makersِ shouldِ
considerِ ifِ theirِ goalِ toِ maximizeِ theِ qualityِ ofِ theirِ outcome.1
Figure 2.2.1 Steps in the Decision-Making Model 2
Identifyِ theِ problemِ orِ opportunity
Gatheringِ information
Analyzingِ theِ situation
Developingِ optionsِ (alternatives)
Evaluatingِ options
Selectingِ aِ preferredِ alternative
Actingِ onِ theِ decision
2.2.8 Decision making steps:
1
ِ Nutt,ِ P.ِ C.ِ (1994),ِ pageِ 29.
2
ِ http://www.the-happy-manager.com/rational-decision-making-model.html
41
Decisionِ makingِ isِ aِ complexِ andِ multistepِ activity,ِ theseِ stepsِ
involve:
First: Identifying a problem or opportunity:

Theِ firstِ stepِ towardsِ aِ decisionِ makingِ processِ isِ toِ defineِ theِ
problem.ِ Obviously,ِ thereِ wouldِ beِ noِ needِ toِ makeِ aِ decisionِ withoutِ
havingِ aِ problem.ِ So,ِ theِ firstِ thingِ oneِ hasِ toِ doِ isِ toِ stateِ theِ
underlyingِ problemِ thatِ hasِ toِ beِ solved.
Youِ alsoِ haveِ toِ clearlyِ stateِ theِ outcomeِ orِ goalِ thatِ youِ desireِ
afterِ youِ haveِ madeِ theِ decision,ِ becauseِ statingِ yourِ goalsِ wouldِ helpِ
youِ inِ clarifyingِ yourِ thoughts.
Second: Gathering information:

Thisِ isِ knowledgeِ aboutِ theِ decisionِ theِ effectsِ ofِ itsِ options,ِ theِ
probabilityِ ofِ eachِ options,ِ andِ gatheringِ theِ relevantِ informationِ andِ
excludesِ notِ relevantِ informationِ toِ theِ decision;ِ tooِ muchِ informationِ
canِ actuallyِ reduceِ theِ qualityِ ofِ aِ decision.
Third: Analyzing the situation:

Determineِ theِ alternativeِ coursesِ ofِ actionِ mayِ beِ availableِ toِ
decisionِ makerِ andِ determineِ theِ differentِ interpretationsِ ofِ theِ data;ِ theِ
Problemِ Solvingِ Activityِ usesِ aِ setِ ofِ structuredِ questionsِ toِ encourageِ
bothِ broadِ andِ deepِ analysisِ ofِ yourِ situationِ orِ problem.
Fourth: Developing options:

Theseِ areِ theِ alternativesِ oneِ hasِ toِ chooseِ from,ِ generateِ severalِ
possibleِ options,ِ beِ creativeِ andِ positive,ِ merelyِ searchingِ forِ
preexistingِ alternativesِ willِ resultِ inِ lessِ effectiveِ decisionِ making.
Fifth: Evaluating alternatives:
42
Determineِ theِ criteriaِ thatِ shouldِ useِ toِ evaluateِ theِ alternative;ِ
theseِ criteriaِ areِ theِ characteristicsِ orِ requirementsِ thatِ eachِ alternativeِ
mustِ possessِ toِ aِ greaterِ orِ lesserِ extent.ِ Usuallyِ theِ alternativesِ areِ
ratedِ onِ howِ wellِ theyِ possessِ eachِ criterion.
Sixth: Selecting a preferred alternative:

Exploreِ theِ preferredِ alternativeِ forِ futureِ possibleِ adverseِ
consequences;ِ determineِ theِ problemsِ mightِ theِ preferredِ alternativeِ
createِ andِ theِ riskِ ofِ makingِ thisِ decisionِ thisِ isِ theِ stageِ whereِ theِ hard
work.
Theِ evaluationِ processِ wouldِ helpِ youِ inِ lookingِ atِ theِ availableِ
optionsِ clearlyِ andِ youِ haveِ toِ pickِ whichِ youِ thinkِ isِ theِ mostِ
applicableِ andِ appropriate.
Seventh: Acting on the decision and implement:

Putِ aِ planِ toِ implementِ theِ decisionِ andِ allocatedِ theِ resourcesِ
thatِ neededِ toِ implementِ theِ decision,ِ theِ nextِ obviousِ stepِ afterِ
choosingِ anِ optionِ wouldِ beِ implementingِ theِ solutionِ (decision),ِ Justِ
makingِ theِ decisionِ wouldِ notِ giveِ theِ result,ِ youِ haveِ toِ evaluateِ theِ
decisionِ youِ haveِ madeِ andِ knowِ theِ implicationsِ ofِ makingِ theِ
decision,ِ thisِ isِ veryِ essentialِ forِ theِ decisionِ toِ giveِ successfulِ results.
2.2.9 Decision scope:1

Decisionsِ varyِ inِ termِ ofِ theirِ scope:
1. Operational control:
Relatedِ toِ theِ effectiveِ andِ efficientِ performanceِ ofِ specificِ tasks.
2. Management control:
1
ِ Romney.ِ Mِ &ِ Steinbart.P.ِ (2008),ِ P.13.
43
Relatedِ toِ theِ effectiveِ andِ efficientِ useِ ofِ resourcesِ forِ
accomplishingِ organizationalِ objectives.
3. Strategic planning:
Relatesِ toِ establishingِ organizationalِ objectivesِ andِ policiesِ forِ
accomplishingِ objectives.
2.2.10 Definition of Decision Maker?

A decision maker:ِ isِ aِ person,ِ orِ groupِ ofِ peopleِ (e.g.,ِ aِ
committee),ِ whoِ makesِ theِ finalِ choiceِ amongِ theِ alternatives.1
Characteristics that should be available in the decision-maker:2

1.ِ Abilityِ toِ understandِ theِ contentِ ofِ theِ informationِ (perception).
2.ِ Theِ abilityِ toِ correctِ useِ ofِ informationِ inِ theِ appropriateِ decisionsِ
andِ appropriateِ preparedِ whichِ thatِ information.
3.ِ Experienceِ theِ qualityِ andِ timeِ relatedِ toِ dealingِ withِ theِ typesِ ofِ
accountingِ informationِ duringِ theِ previousِ time.
2.2.11 Group Decisions Making:

Isِ aِ situationِ facedِ whenِ peopleِ thinkِ orِ areِ broughtِ togetherِ toِ
solveِ problemsِ inِ theِ anticipationِ thatِ theyِ areِ moreِ effectiveِ thanِ
individualsِ underِ theِ ideaِ ofِ synergy.3
Aِ groupِ decisionِ situationِ involvesِ multipleِ actorsِ (decisionِ
makers),ِ eachِ withِ differentِ skills,ِ experienceِ andِ knowledgeِ relatingِ toِ
differentِ aspectsِ (criteria)ِ ofِ theِ problem.ِ Inِ aِ correctِ methodِ forِ
synthesizingِ groupِ decisions,ِ theِ competenceِ ofِ theِ differentِ actorsِ toِ the
differentِ professionalِ fieldsِ hasِ alsoِ toِ beِ takenِ intoِ account.4
1
ِ http://pespmc1.vub.ac.be/ASC/DECISI_MAKER.html
2
ِ Alhubaity,ِ K.,ِ &ِ Alsaqah,ِ Z.ِ (2003),ِ pageِ 34.
3
ِ http://en.wikipedia.org/wiki/Group_decision_making
4
ِ Fülöp,ِ János,ِ (Unknownِ ).
44
Advantages and Disadvantages of Group Decisions Making:
Thereِ areِ severalِ instancesِ inِ professionalِ asِ wellِ asِ personalِ lifeِ
whenِ decision-makingِ requiresِ opinionsِ andِ inputsِ fromِ moreِ thanِ oneِ
orِ twoِ people.
Here are some of the advantages and disadvantages of group
decisions:
Advantages of Group Decisions:

 Groupِ decisionsِ helpِ toِ combineِ individualِ strengthsِ ofِ theِ groupِ
membersِ andِ soِ theِ decisionsِ willِ haveِ variedِ skillsِ appliedِ inِ
makingِ processesِ
 Individualِ opinionsِ canِ beِ biasedِ orِ affectedِ withِ pre-conceivesِ
notionsِ areِ restrictedِ perspectives,ِ groupِ decisionِ helpِ toِ getِ aِ
broaderِ perspectiveِ owingِ toِ differencesِ ofِ perceptionِ betweenِ
individualِ inِ theِ group.ِ
 Aِ groupِ decisionِ willِ enhanceِ understandingِ ofِ theِ courseِ ofِ
actionِ toِ beِ takenِ afterِ theِ decisionِ isِ taken.ِ
 Aِ groupِ decisionِ hasِ aِ greaterِ groupِ commitmentِ becauseِ
everyoneِ hasِ shareِ inِ theِ decisionِ making.ِ
 Groupِ decisionsِ willِ giveِ aِ senseِ ofِ teamِ spiritِ amongstِ theِ
membersِ andِ willِ helpِ theِ groupِ toِ thinkِ togetherِ inِ termsِ ofِ
successِ orِ failure.
Disadvantages of Group Decisions:

 Oneِ ofِ theِ majorِ disadvantagesِ ofِ groupِ decisionِ makingِ isِ thatِ itِ
takeِ moreِ timeِ thanِ theِ processِ ofِ individualِ decisionِ making.ِ
45
 Groupِ decisionsِ takeِ longerِ toِ beِ finalizedِ becauseِ manyِ opinionsِ
haveِ toِ beِ consideredِ inِ makingِ processes.ِ
 Theِ peopleِ whoseِ opinionsِ areِ notِ consideredِ willِ feelِ thatِ theyِ
areِ outِ fromِ theِ decisionِ makingِ processِ soِ theِ teamِ spiritِ ceasesِ
toِ grow.ِ
 Theِ responsibilityِ andِ accountabilityِ ofِ theِ decisionsِ areِ notِ
equallyِ sharedِ inِ someِ casesِ whichِ leadِ toِ aِ splitِ inِ theِ groupِ andِ
henceِ hamperِ theِ overallِ efficiencyِ ofِ theِ group.
46
Chapterِ -3-
47
Palestineِ Cellular
Communications
Company,ِ Ltd
"JAWWAL"
48
3.1 Introduction:
Jawwalِ isِ theِ firstِ Palestinianِ providerِ forِ communicationِ
services;ِ itِ helpsِ allِ peopleِ inِ Palestineِ toِ communicateِ throughِ theِ latest
technologyِ regardlessِ ofِ theِ hardِ political,ِ economicalِ andِ socialِ
obstaclesِ facingِ it.ِ Withِ theirِ committedِ team,ِ theyِ hadِ beenِ ableِ toِ
overcomeِ allِ theِ variousِ challenges.
Inِ thisِ chapterِ theِ twoِ researchersِ willِ talkِ brieflyِ aboutِ Jawwalِ
Company,ِ itsِ establishment,ِ vision,ِ mission,ِ goals,ِ objectives,ِ strategyِ
andِ theِ SWOTِ analysisِ ofِ theِ company.
3.2 About Jawwal Company:

"Telecommunicationsِ Companyِ foundedِ inِ 01/01/1997,ِ whichِ
includesِ Jawwalِ Companyِ thenِ Telecommunicationsِ Companyِ hasِ
establishedِ Jawwalِ Company,ِ Jawwalِ Companyِ beganِ inِ Gazaِ inِ August
1999ِ andِ inِ theِ Westِ Bankِ inِ Octoberِ 1999.
Likeِ aِ youngِ oliveِ tree,ِ Jawwalِ blossomedِ inِ theِ Holyِ Landِ ofِ
Palestineِ toِ becomeِ fruitfulِ andِ green,ِ proudِ toِ give,ِ connectingِ theِ
communityِ andِ makingِ theِ worldِ aِ phoneِ callِ away.ِ Thisِ isِ aِ companyِ
thatِ hasِ turnedِ intoِ aِ starِ shiningِ inِ theِ openِ skiesِ ofِ communicationsِ
andِ technologicalِ evolution.ِ Jawwalِ hasِ deservedlyِ earnedِ itsِ statusِ
amongstِ theِ pioneersِ inِ theِ Palestinianِ market.
Afterِ obtainingِ itsِ license,ِ Jawwalِ workedِ tirelesslyِ toِ buildِ theِ
firstِ Palestinianِ GSMِ networkِ andِ managedِ toِ makeِ itsِ firstِ callِ inِ 1999.ِ
Aِ fewِ monthsِ later,ِ theِ companyِ wasِ commerciallyِ launchedِ toِ findِ
itselfِ inِ directِ competitionِ withِ fourِ well-establishedِ Israeliِ operators.
Thisِ competitionِ wasِ soِ fierceِ thatِ theِ Palestinianِ marketِ hadِ
becomeِ oneِ ofِ theِ mostِ competitiveِ marketsِ inِ theِ Middleِ East.
Towardsِ theِ endِ ofِ theِ yearِ 2001,ِ Jawwalِ hadِ toِ comeِ upِ againstِ a
challengeِ thatِ probablyِ noِ otherِ GSMِ operatorِ hadِ everِ faced;ِ theِ Israeli
49
authoritiesِ preventedِ Jawwalِ fromِ gettingِ anyِ equipmentِ intoِ theِ
country,ِ thisِ delayedِ expansionِ plansِ byِ years.ِ Jawwalِ wasِ forcedِ toِ stop
customerِ acquisitionِ severalِ timesِ toِ copeِ withِ itsِ decreasingِ networkِ
capacityِ andِ toِ maintainِ acceptableِ qualityِ ofِ service.
Inِ 2005ِ Jawwalِ hadِ toِ optِ forِ aِ nonِ conventionalِ solutionِ toِ
increaseِ theِ capacityِ ofِ itsِ coreِ network.ِ Afterِ aroundِ fourِ yearsِ ofِ
restrictionsِ onِ importingِ equipment,ِ Jawwalِ installedِ switchesِ andِ base-
stationsِ inِ London,ِ UK.ِ Jawwalِ isِ probablyِ theِ firstِ operatorِ inِ theِ world
whichِ servesِ itsِ customersِ inِ oneِ cotenantِ whileِ usingِ coreِ networkِ
nodesِ inِ anotherِ cotenantِ thousandsِ ofِ milesِ away.
Theِ politicalِ andِ economicِ instabilityِ inِ Gazaِ hasِ beenِ andِ stillِ isِ
anِ additionalِ challenge.ِ Gettingِ equipmentِ thereِ isِ aِ tediousِ process,ِ
installingِ baseِ stationsِ andِ maintainingِ cellِ sitesِ areِ dangerousِ tasks.ِ Yet,
andِ outِ ofِ itsِ commitmentِ toِ secureِ cellularِ communicationsِ toِ allِ
Palestinians,ِ Jawwalِ movedِ forwardِ soِ thatِ peopleِ inِ Gazaِ canِ stayِ inِ
touchِ withِ theِ worldِ andِ mostِ importantly,ِ withِ eachِ other.
Inِ additionِ toِ theseِ circumstances,ِ Jawwalِ hasِ alwaysِ beenِ
strugglingِ withِ theِ limitedِ frequencyِ allocatedِ byِ Israel.ِ Itsِ networkِ
utilizesِ aِ frequencyِ ofِ 4.8MHZِ whichِ isِ theِ minimumِ requiredِ forِ anyِ
GSMِ operatorِ toِ work.ِ However,ِ withِ carefulِ planningِ andِ moreِ
investmentِ Jawwalِ teamsِ managedِ toِ provideِ neededِ coverageِ inِ allِ
populatedِ Palestinianِ areas.
Jawwalِ hasِ achievedِ increasingِ profitsِ sinceِ theِ secondِ yearِ ofِ itsِ
operation;ِ thisِ allowsِ Jawwalِ toِ playِ anِ activeِ roleِ inِ theِ Palestinianِ
economyِ throughِ aِ numberِ ofِ keyِ investmentsِ andِ initiatives.
Theِ yearِ ofِ 2007ِ endedِ withِ Jawwalِ crossingِ theِ oneِ millionِ
customersِ mark,ِ inِ 2011ِ itِ hasِ reachedِ moreِ thanِ 2ِ millionِ andِ half.ِ
Despiteِ allِ adversaries,ِ Jawwalِ hasِ provenِ toِ beِ aِ companyِ thatِ managed
toِ addressِ theِ needsِ ofِ everyِ individualِ andِ segmentِ inِ theِ market.ِ
50
Jawwalِ isِ makingِ continuousِ investmentsِ toِ improveِ itsِ services;ِ
itsِ networkِ nowِ coversِ 98%ِ ofِ Westِ Bankِ andِ Gaza,ِ withِ 25ِ showrooms,
1000ِ mainِ andِ subِ dealersِ servingِ customersِ inِ everyِ cornerِ inِ theِ
country.ِ Throughِ theِ internationalِ roamingِ agreementsِ Jawwalِ signedِ
withِ differentِ 347ِ operators,ِ itِ allowedِ itsِ customersِ toِ stayِ connectedِ
whileِ travellingِ inِ 150ِ countries.ِ ِ ِ ِ ِ ِ
Mostِ servicesِ haveِ beenِ automatedِ utilizingِ IVR,ِ SMSِ andِ Myِ
Accountِ allowingِ customersِ toِ requestِ servicesِ atِ theirِ convenience.
“Customers first” isِ Jawwalِ promise.ِ Toِ keepِ thisِ promise,ِ
Jawwalِ offersِ aِ vastِ varietyِ ofِ wellِ designedِ packagesِ andِ introducesِ the
latestِ servicesِ thatِ appealِ toِ allِ ageِ andِ userِ groups.ِ Thereِ isِ alsoِ aِ
choiceِ ofِ valueِ addedِ servicesِ toِ meetِ theِ expectationsِ ofِ allِ customersِ
whoِ wishِ toِ keepِ upِ withِ theِ mostِ recentِ technologies"1.
3.3 "Environment friendly" and a friend to all:

Jawwalِ isِ theِ pioneerِ ofِ promotingِ internationalِ standardsِ ofِ
preservingِ theِ environmentِ inِ Palestine.ِ Jawwalِ wasِ grantedِ theِ
Internationalِ Environmentalِ Managementِ Systemِ Certificateِ (ISOِ
14001)ِ forِ theِ secondِ timeِ inِ aِ rowِ (fromِ Juneِ 2009ِ toِ Mayِ 2012)ِ toِ
becomeِ amongِ theِ firstِ fewِ mobileِ operatorsِ toِ beِ awardedِ suchِ aِ
certificate.ِ Jawwalِ worksِ ferventlyِ toِ maintainِ thisِ certificateِ throughِ
regularِ reviewsِ ofِ itsِ operationsِ andِ imposingِ strictِ regulationsِ onِ
managingِ cellِ sitesِ andِ disposalِ ofِ potentiallyِ hazardousِ wastes.
Thisِ successِ Jawwalِ hasِ recordedِ couldِ notِ beِ achievedِ withoutِ
theِ effortsِ ofِ itsِ professionalِ staffِ thatِ theِ companyِ alwaysِ insistsِ toِ
developِ theirِ experiencesِ throughoutِ trainingِ coursesِ andِ theِ healthyِ
workِ environment.
1
ِ Jawwalِ publicationsِ onِ theِ websiteِ www.jawwal.ps.
51
Jawwalِ familyِ isِ anِ integralِ partِ ofِ theِ Palestinianِ society;ِ itِ playsِ
anِ effectiveِ roleِ inِ focusingِ onِ theِ mostِ insistingِ socialِ issuesِ withِ
specialِ attentionِ toِ theِ youngِ generation.ِ Jawwalِ stronglyِ believesِ thatِ
youngِ peopleِ areِ theِ futureِ catalystsِ ofِ growthِ andِ developmentِ inِ
country.
3.4 Vision and mission of the company:
3.4.1 Jawwal vision:

Jawwalِ seeksِ toِ realizeِ itsِ visionِ inِ maintainingِ leadershipِ inِ aِ
marketِ whereِ allِ Palestiniansِ enjoyِ theِ benefitsِ ofِ wirelessِ
communications.ِ Jawwalِ alsoِ seeksِ toِ beِ aِ trustedِ andِ smoothِ partnerِ
thatِ unitesِ heartsِ andِ enrichesِ livesِ inِ itsِ localِ community,ِ andِ oneِ thatِ
prospersِ inِ aِ globalِ marketِ withoutِ limitationsِ orِ boundaries.
3.1 Jawwal Mission:
1. Theyِ willِ listenِ toِ theirِ customersِ andِ meetِ theirِ changingِ needs.
2. Theyِ willِ activelyِ developِ aِ nationalِ networkِ thatِ isِ reliableِ andِ
trusted.
3. Theyِ willِ beِ aِ leadingِ exampleِ ofِ professionalismِ andِ integrityِ byِ
developingِ aِ worldِ classِ teamِ ofِ professionals.
4. Theyِ willِ beِ innovativeِ inِ overcomingِ theِ barriersِ thatِ existِ inِ
theirِ marketِ toِ supportِ theirِ growthِ andِ deliverِ onِ theirِ vision.
3.8 Goals and Objectives of the company:
3.5.1 Main goal:

Overcomeِ theِ expectationsِ ofِ theِ participantsِ today,ِ andِ tomorrow,
afterِ tomorrow.
52
3.5.2 Objectives:
1. Serveِ communityِ throughِ theِ studyِ ofِ theِ needsِ ofِ allِ participantsِ
andِ workِ toِ meetِ them.
2. Toِ maintainِ networkِ strongِ andِ safe,ِ inِ allِ partsِ ofِ theِ country.
3. Toِ provide communicationِ serviceِ distinctِ forِ allِ participantsِ inِ all
partsِ ofِ theِ country.
4. Toِ provideِ excellenceِ serviceِ andِ varietyِ ofِ programsِ andِ
campaignِ forِ allِ participant.
5. Toِ maintainِ socialِ responsibilityِ towardsِ allِ theِ institutionsِ ofِ
societyِ throughِ continuousِ communicationsِ inِ variousِ ways.
3.6 Strategy of the company:

1. Providingِ theِ bestِ programsِ andِ servicesِ atِ competitiveِ pricesِ andِ
accordingِ toِ theِ internationalِ qualityِ standard.
2. Providingِ allِ servicesِ requiredِ byِ subscribersِ soِ thatِ theِ
Palestinianِ cellularِ telephoneِ canِ meetِ allِ theirِ dailyِ need.
3. ِ Puttingِ marketingِ policiesِ andِ programsِ thatِ aimِ atِ attractingِ new
subscribersِ andِ maintainingِ existingِ ones.
4. Expandingِ theِ networkِ ofِ showroomsِ andِ salesِ outletsِ asِ wellِ asِ
theِ baseِ ofِ mainِ andِ subِ dealersِ soِ asِ toِ provideِ Jawwalِ bestِ
qualityِ servicesِ toِ allِ Palestinianِ regions.
5. Improvingِ andِ upgradingِ theِ Palestinianِ cellularِ networkِ toِ
achieveِ theِ highestِ internationalِ standardsِ inِ termsِ ofِ coverageِ
andِ qualityِ ofِ services.
6. Providingِ internationalِ careِ andِ serviceِ toِ meetِ Jawwalِ
subscriber'sِ needsِ throughِ aِ teamِ ofِ highlyِ professionalِ
employees.
53
3.7 SWOT analysis:
Identifiesِ andِ listsِ theِ firm'sِ strengths,ِ weaknesses,ِ opportunitiesِ
andِ itsِ threats.
Strengthِ andِ threatsِ areِ factorsِ thatِ areِ attributesِ ofِ theِ businessِ itِ
self,ِ whereasِ opportunitiesِ andِ threatsِ areِ factorِ expectedِ toِ beِ presentِ in
theِ environmentِ inِ whichِ theِ businessِ operates.1
Figureِ 1ِ showsِ theِ SWOTِ analysis:
Figure 3.1 SWOT analysis2
Strengths Weaknesses
SOWT
Opportunities Threats
First: Strengths:
Dividedِ intoِ internalِ andِ externalِ strengths:
A. Internal:
1. Existenceِ ofِ functionalِ andِ qualifiedِ staff.
2. Continuedِ cooperationِ betweenِ theِ variousِ departmentsِ ofِ theِ
company.
3. Aِ workِ environmentِ integratedِ andِ convenient.
4. Provideِ allِ facilitiesِ requiredِ toِ work.
1
ِ Atrill,ِ Pِ &ِ Mclancy,ِ E,ِ (2009),ِ pageِ 14.
2
ِ http://hrmadvice.com/hrmadvice/useful-hr-tools/hr-swot-examples.html
54
5. Workِ withinِ theِ teamِ andِ oneِ full.
6. Helpingِ fromِ staffِ toِ managersِ andِ managersِ toِ staffِ andِ theirِ
dealingsِ onِ aِ professionalِ basis.
7. Transparencyِ andِ credibilityِ inِ dealingِ withِ divisionِ andِ
departmentsِ ofِ theِ company.
B. External:
1. Theِ trustِ ofِ customers.
2. Ongoingِ communicationِ withِ allِ institutionsِ ofِ society.
3. Continuedِ attentionِ toِ socialِ responsibilityِ forِ mobileِ inِ society.
4. Meetِ theِ needِ ofِ theirِ customersِ andِ itsِ servicesِ comfortableِ andِ
urgent.
Second: Weaknesses:
1. Localِ company,ِ itِ doesِ notِ haveِ branchesِ outsideِ ofِ Palestine.
2. Fewِ percentageِ ofِ peopleِ areِ dissatisfyِ forِ Jawwalِ Company.
3. Jawwalِ Companyِ isِ facingِ aِ bigِ problemِ becauseِ ofِ turning-offِ
electricity,ِ whichِ affectsِ itsِ network.
Third: Opportunities:
1. Theِ marketِ needِ forِ advancedِ mobileِ servicesِ andِ rapidِ
communication.
2. Highِ rateِ ofِ confidenceِ ofِ mobileِ subscribes.
3. Ongoingِ communicationِ withِ participantsِ andِ provideِ themِ withِ
allِ theirِ needsِ andِ wishes.
4. Increasingِ communityِ awarenessِ ofِ theِ communicationِ service.
5. Communicateِ withِ theِ studentِ categoryِ continuously.
Fourth: Threats:
1. Politicalِ statusِ inِ theِ Westِ Bankِ andِ Gazaِ strip.
2. Theِ badِ economicِ situationِ theِ Gazaِ Strep.
55
3. Siegeِ andِ theِ lackِ ofِ crossingsِ toِ insertِ theِ equipmentِ andِ
resources.
4. Theِ divisionِ ofِ Gazaِ andِ theِ Westِ bankِ andِ itsِ negativeِ effectsِ onِ
theِ companyِ andِ theِ publicِ relationsِ departmentِ inِ particular.
5. Lackِ ofِ cooperationِ byِ someِ educationalِ andِ governmentِ withِ
Jawwalِ Company.
6. Difficultyِ ofِ installingِ stationsِ inِ someِ partsِ ofِ theِ Westِ Bank.
56
Chapterِ -4-
57
Methodology
58
4.1 Introduction:
Thisِ chapterِ explainsِ inِ detailsِ theِ proceduresِ adaptedِ byِ theِ twoِ
researchersِ inِ implementingِ theِ study,ِ researchِ methodologyِ
identification,ِ definingِ theِ studyِ population,ِ studyِ sample,ِ preparingِ
interview,ِ andِ summarizeِ anِ interview
Theِ twoِ researchersِ willِ defineِ theseِ proceduresِ asِ follows:
4.2 Research approach:
Theِ researcherِ usedِ theِ descriptiveِ analyticalِ approachِ toِ complete
theِ studyِ whichِ dependsِ onِ describingِ andِ demonstrateِ theِ importanceِ of
useِ theِ accountingِ informationِ inِ decision-makingِ process.
4.3 Research phases:
The first phase:
Researchِ proposal,ِ whichِ includedِ generateِ topicِ identifyingِ theِ
problem,ِ establishingِ objectives,ِ definingِ importanceِ ofِ theِ study,ِ
determineِ theِ scopeِ andِ limitationsِ ofِ theِ research,ِ andِ developingِ
researchِ plan.
The second phase:ِ
Summaryِ ofِ literatureِ reviewِ aboutِ accountingِ andِ accountingِ
information,ِ decisionِ making,ِ andِ theِ importanceِ ofِ usingِ accountingِ
informationِ inِ decisionِ making
The third phase:ِ
Writeِ theِ interviewِ questionsِ andِ makeِ theِ interviewِ withِ theِ
employeesِ fromِ Jawwalِ Company.
The fourth phase:
Summarizeِ theِ questionsِ andِ itsِ answerِ afterِ itِ hasِ beenِ answeredِ
byِ companyِ employees.ِ
The fifth phase:ِ
Writeِ theِ conclusionsِ andِ recommendations.
59
Theِ followingِ figureِ 4.1ِ illustratesِ theِ phasesِ ofِ researchِ thatِ leadِ toِ
achieveِ theِ researchِ objective.
Figure: 4.1 Research phases
Topic
Research proposal
Literature review
Interview
Summarize the interview
Results & recommendations
4.4 Data collection:

1. Secondary resources:
Inِ orderِ toِ addressِ theِ theoreticalِ frameworkِ ofِ theِ study,ِ theseِ
secondaryِ resourcesِ include:ِ Arabicِ andِ Englishِ referenceِ books,ِ
journals,ِ magazinesِ andِ periodicalsِ thatِ areِ relatedِ toِ theِ studyِ topic.ِ
60
2. Primary resources:ِ
Primaryِ resourcesِ include:ِ previousِ studies,ِ researches,ِ andِ
readingsِ fromِ variousِ websitesِ thatِ areِ relatedِ toِ theِ studyِ topic.
Toِ addressِ theِ analyticalِ frameworkِ ofِ theِ studyِ theِ interviewِ
worked.
4.5 Society and sample of the study:
Society:
Itِ meansِ allِ individualsِ thatِ constituteِ theِ subjectِ ofِ study,ِ orِ allِ
theِ peopleِ theِ researcherِ wantِ toِ knowِ about.
Theِ societyِ ofِ thisِ studyِ consistsِ ofِ companiesِ inِ serviceِ sector,ِ inِ
Gazaِ strip.ِ
Sample:
Itِ isِ impossibleِ toِ makeِ theِ interviewِ withِ allِ individualsِ theِ two
researchersِ wantِ toِ knowِ about. Insteadِ ofِ this,ِ theِ twoِ researchersِ select
a ِ sample ِ that ِ represented ِ the ِ original ِ society ِ and ِ can ِ generalize ِ its
resultsِ onِ theِ research.
Sample ِ means ِ a ِ set ِ of ِ individuals ِ or ِ items ِ selected ِ from ِ a
populationِ forِ analysisِ toِ yieldِ estimatesِ of,ِ orِ toِ testِ hypothesesِ about,
parametersِ ofِ theِ wholeِ population,ِ andِ representativeِ ofِ allِ community.
Theِ selectedِ sampleِ consistsِ of ِ Jawwalِ Companyِ it ِ wasِ selected
as ِ one ِ of ِ theِ service ِ sector ِ companiesِ in ِ the ِ Gaza ِ Strip, ِ Where ِ the
interviewِ wasِ madeِ withِ oneِ ofِ itsِ employees.
4.6 Interview:
Anِ interviewِ isِ aِ purposefulِ discussionِ betweenِ twoِ orِ moreِ
people.1
1
ِ Saunders,ِ Mِ &ِ etِ al,ِ (2003),ِ pageِ 245.
61
Toِ completeِ thisِ researchِ structuredِ interviewِ wasِ madeِ withِ
"Mustafaِ Shaaban"ِ Theِ Headِ ofِ theِ Departmentِ ofِ Financeِ atِ Jawwalِ
Company.
Content of the interview:

Theِ interviewِ includesِ aِ seriesِ ofِ questionsِ relatingِ toِ theِ research
hypothesesِ thatِ haveِ beenِ developed,ِ whichِ aimsِ toِ achieveِ theِ
objectivesِ ofِ theِ research.
4.2 Advantages and disadvantages of the interview:
Advantages of using an Interview:

1.ِ Itِ isِ aِ goodِ wayِ toِ findِ outِ theِ attitudes,ِ thoughts,ِ andِ behaviorsِ ofِ aِ
largeِ groupِ ofِ people.
2.ِ Alwaysِ offerِ positiveِ information.
3.ِ Getِ directlyِ theِ informationِ thatِ youِ need.
4.ِ Ifِ theِ respondentِ lacksِ readingِ skillsِ toِ answerِ aِ question
5.ِ Areِ usefulِ forِ untanglingِ complexِ topics.
6.ِ Theِ Interviewerِ canِ probeِ deeperِ intoِ aِ responseِ givenِ byِ anِ
interviewee.
7.ِ Interviewsِ produceِ aِ higherِ responseِ rate.
Disadvantages of using an Interview:

1.ِ Inِ someِ situationsِ itِ canِ takeِ aِ longِ time.
2.ِ Unwillingnessِ ofِ respondentِ toِ provideِ Information.
3.ِ Theِ interviewerِ canِ affectِ theِ dataِ ifِ he/sheِ isِ notِ consistent.
4.ِ Itِ isِ veryِ timeِ consuming.
5.ِ Itِ isِ notِ usedِ forِ aِ largeِ numberِ ofِ people.
6.ِ Theِ Interviewerِ mayِ beِ biasedِ andِ askِ closedِ questions.
62
4.8 Summarized the interview:
Coordinateِ theِ interviewِ andِ summarizedِ theِ answersِ ofِ theِ
questionsِ thatِ wereِ obtainِ inِ theِ interviewِ inِ aِ scientificِ andِ clearِ wayِ
andِ useِ clearِ andِ understandableِ termsِ soِ thatِ everyoneِ canِ understandِ
it.
63
Chapterِ -5-
64
Applied
study
65
5.1 Introduction:
Administrationِ findsِ itselfِ inِ manyِ situationsِ needِ toِ makeِ
decisionsِ withِ significantِ impactِ onِ theِ organization‘sِ profitsِ andِ itsِ
financialِ positionِ asِ aِ resultِ ofِ rapidِ developmentِ andِ theِ competitionِ
thatِ companiesِ facedِ atِ allِ times.
Decision-makingِ processِ isِ theِ essenceِ ofِ theِ administrativeِ
process,ِ soِ theِ decisionِ makerِ canِ notِ reliesِ onlyِ onِ theِ expectation,ِ
experienceِ andِ conventionalِ methodsِ ofِ decision-makingِ process,ِ butِ
mustِ relyِ onِ theِ informationِ andِ dataِ thatِ concerningِ withِ theِ situationِ
orِ problemِ thatِ needِ toِ beِ solve.
Manyِ recentِ studiesِ provedِ thatِ accountingِ informationِ isِ theِ bestِ
forِ theِ managementِ toِ relyِ onِ itِ inِ makingِ decisionِ process,ِ whereِ theِ
managementِ reliesِ onِ theِ outputsِ ofِ theِ accountingِ systemِ asِ inputsِ forِ
decisionِ makingِ process.
Jawwalِ isِ theِ firstِ Palestinianِ providerِ forِ communicationِ
services;ِ itِ helpsِ allِ peopleِ inِ Palestineِ toِ communicateِ throughِ theِ latest
technologyِ regardlessِ ofِ theِ hardِ political,ِ economicalِ andِ socialِ
obstaclesِ facingِ it,ِ andِ stillِ provideِ aِ lotِ ofِ serviceِ toِ theِ peopleِ inِ
Palestineِ andِ contributeِ toِ supportِ theِ Palestinianِ economy.
Fromِ here,ِ itِ shouldِ beِ addressedِ thisِ subjectِ whichِ isِ accountingِ
informationِ andِ theِ importanceِ ofِ usingِ itِ inِ decisionِ makingِ processِ
andِ contributionِ ofِ accountingِ informationِ toِ makeِ theِ decisionِ rationalِ
andِ effectiveِ theِ implementedِ itِ onِ theِ serviceِ sector.
Theِ studyِ hasِ beenِ appliedِ andِ evaluatedِ onِ theِ Palestinianِ
Cellularِ Communicationsِ Company,ِ "Jawwal".
Inِ thisِ chapter,ِ researchersِ introduceِ theِ implementationِ ofِ theِ
studyِ whereِ itِ wasِ appliedِ byِ interviewِ andِ discussionِ withِ departmentِ
ofِ financeِ staffِ inِ theِ company.
66
Jawwalِ increasingِ theirِ interestِ inِ financialِ reportِ whichِ includeِ
accountingِ informationِ becauseِ itِ isِ includeِ allِ theِ informationِ
concerningِ withِ theِ companyِ andِ itsِ financialِ positionِ becauseِ Jawwalِ
hasِ becomeِ oneِ ofِ theِ largestِ Palestinianِ companiesِ inِ theِ Gazaِ Strip.
Theِ importanceِ ofِ theِ companyِ increasedِ toِ theِ accountingِ
informationِ asِ anِ effectiveِ toolِ inِ orderِ toِ useِ itِ inِ theِ administrativeِ
decisionsِ whichِ requiringِ accessِ toِ accountingِ informationِ thatِ havingِ
theِ characteristicsِ requiredِ forِ decision-makingِ process.
Toِ findِ outِ howِ importantِ ofِ usingِ accountingِ informationِ inِ
decision-makingِ andِ theirِ contributionِ toِ theِ successِ ofِ theseِ decisionsِ
theِ twoِ researchersِ makeِ aِ personalِ interviewِ andِ askedِ severalِ
questionsِ relatedِ toِ theِ subjectِ andِ theِ answersِ areِ summarizedِ asِ
follows:1
5.2 Summarized the interview:
Accounting information included in financial reports has all
necessary information for the companyِ andِ Accountingِ informationِ
explainsِ allِ theِ financialِ transactionsِ undertakenِ byِ theِ companyِ whereِ
theِ companyِ publishedِ itsِ financialِ statementsِ onِ theِ it'sِ websiteِ andِ
everyoneِ canِ accessِ toِ them.
As for depending completely on the information found in the

financial reports,ِ Mr.ِ ِ Mustafaِ hasِ pointedِ thatِ companyِ doesِ notِ relyِ
onlyِ onِ theِ accountingِ informationِ inِ decisionِ makingِ process,ِ Forِ
example,ِ thereِ areِ decisionsِ relatedِ toِ marketingِ inِ thisِ caseِ theِ
companyِ needِ toِ someِ marketingِ researchِ relatedِ toِ customerِ andِ theirِ
tastes.ِ ِ Butِ inِ theِ caseِ ofِ financialِ decisionsِ thatِ relatedِ toِ theِ financialِ
positionِ inِ theِ company,ِ theِ companyِ reliesِ inِ thisِ caseِ onِ theِ
accountingِ informationِ thatِ availableِ inِ financialِ reports.
1
ِ Aِ personalِ Interviewِ withِ "Mustafaِ Shaaban"ِ Theِ Headِ ofِ theِ Departmentِ ofِ Financeِ atِ Jawwalِ
Companyِ onِ 17/80/2011.
67
As for the Accounting information found in the Annually,
Semiannually or quarterly financial statements sufficient for a
decision maker,ِ itِ isِ sufficientِ ifِ theِ decisionِ relatedِ toِ theِ accountingِ
informationِ foundِ inِ financialِ statementsِ andِ theِ companyِ makesِ andِ
publishِ itsِ financialِ statementsِ atِ theِ endِ ofِ eachِ year,ِ butِ thereِ areِ aِ lotِ
ofِ decisionsِ takenِ byِ theِ companyِ duringِ theِ yearِ andِ thereforeِ decisionِ
makerِ doesِ notِ waitِ toِ theِ endِ ofِ theِ yearِ toِ makeِ theِ decisionِ becauseِ
ofِ thisِ theِ companyِ useِ instantِ orِ mechanismِ reportِ toِ makeِ necessaryِ
reportsِ duringِ theِ year.ِ
Theِ twoِ researchersِ tendِ toِ supportِ theِ viewِ thatِ sayِ thisِ theِ
benefitِ ofِ theِ informationِ isِ notِ determinedِ byِ itsِ size,ِ butِ theِ extentِ ofِ
itsِ abilityِ toِ influenceِ theِ decisions,ِ andِ thisِ dependsِ onِ theِ availabilityِ
ofِ theِ requiredِ characteristicsِ inِ theِ accountingِ information.
In terms of that decision is based on the comparison that made

between the previous accounting information and the current
accounting information,ِ heِ stressedِ thatِ theِ companyِ makeِ aِ
comparisonsِ betweenِ previousِ financialِ statementsِ andِ currentِ financialِ
statementsِ toِ knowِ theِ differenceِ betweenِ theِ currentِ andِ previousِ years,
andِ toِ knowِ whetherِ thisِ differenceِ desirableِ forِ theِ companyِ orِ notِ andِ
takeِ theِ necessaryِ decisionsِ concerningِ withِ eachِ ofِ theseِ cases.
As for the decision maker use the accounting information in

rationalizing decisions,ِ heِ stressedِ thatِ theِ accountingِ informationِ using
inِ rationalizingِ decisionsِ ifِ theِ accountingِ informationِ receivedِ inِ aِ
68
timelyِ andِ appropriateِ quantityِ andِ requiredِ characteristicsِ itِ willِ helpِ to
makeِ correctِ decisions.
About the existence of other information affecting the decision

making process, heِ explainedِ thatِ thereِ areِ aِ lotِ ofِ informationِ thatِ
affectِ theِ decision-makingِ processِ andِ explainedِ thatِ theِ companyِ asِ allِ
worksِ asِ anِ informationِ systemِ integratedِ andِ interdependentِ whereِ ِ
eachِ departmentِ ofِ theِ companyِ hasِ anِ informationِ systemِ andِ provideِ
informationِ aboutِ itselfِ toِ theِ managementِ andِ thisِ informationِ
integratedِ withِ theِ accountingِ informationِ toِ formِ anِ integratedِ andِ
interdependentِ informationِ systemِ andِ theِ resultingِ informationِ usedِ byِ
managementِ inِ makingِ decisions.
As for the obstacles that may face the using the accounting
information in making decision, areِ representedِ inِ severalِ thingsِ
including:
1. Highِ costsِ ofِ collectingِ accountingِ informationِ thatِ relatedِ toِ
decisionِ making.
2. Lackِ ofِ accessِ toِ accountingِ informationِ inِ aِ timelyِ manner.
3. Deficitِ ofِ providingِ reportsِ thatِ relatedِ toِ theِ dailyِ decisionsِ thatِ
occurِ duringِ theِ year.
4. Failureِ toِ provideِ informationِ withِ requiredِ characteristics.
5. Incorrectِ informationِ leadsِ toِ theِ incorrectِ decision.
As for decision makers be considered highly qualified and

knowledgeable with accounting information and taking decisions
depending on them, heِ saidِ thatِ theِ decisionِ makersِ mustِ beِ qualifiedِ
andِ knowledgeableِ withِ accountingِ informationِ inِ orderِ toِ makeِ correctِ
decisionِ inِ lineِ withِ theِ interestِ ofِ theِ companyِ andِ itsِ objectivesِ andِ heِ
69
stressedِ thatِ theِ decisionِ makersِ ofِ theِ companyِ haveِ theِ abilityِ toِ
understandِ theِ accountingِ informationِ andِ haveِ theِ experienceِ andِ
competenceِ toِ makeِ decisions.ِ
About the Stages of decision-making process, itِ startِ withِ
studyingِ theِ problem,ِ collectِ theِ necessaryِ informationِ aroundِ it,ِ foundِ
alternatives,ِ developِ appropriateِ alternatives,ِ chooseِ theِ bestِ alternativeِ
thenِ applyِ theِ bestِ solutionِ andِ finallyِ evaluateِ theِ decisionِ andِ knowِ
theِ implicationsِ ofِ makingِ theِ decision.
As for the presented accounting information comprehensive

and sufficient as required, theِ accountingِ departmentِ inِ Jawwalِ
Companyِ isِ workingِ toِ provideِ adequateِ andِ comprehensiveِ information
forِ decision-makingِ process.
As for accounting information depend on prediction in future

depending on the current state, heِ explainedِ thatِ theِ accountingِ
informationِ thatِ relatedِ toِ theِ futureِ yearِ preparedِ dependingِ onِ theِ
financialِ statementsِ thatِ relatedِ toِ theِ previousِ yearsِ andِ thisِ usedِ inِ
preparationِ ofِ estimatedِ budgets.
About the internal and external circumstances affect on the

information and the accounting status in the company, heِ confirmedِ
thatِ theِ absenceِ ofِ anyِ circumstancesِ affectِ onِ theِ informationِ andِ theِ
accountingِ status,ِ butِ thereِ mayِ beِ anِ impactِ onِ theِ company'sِ activitiesِ
andِ servicesِ butِ asِ anِ informationِ systemِ theِ companyِ doesِ notِ haveِ ِ
anyِ effect,ِ becauseِ theِ companyِ hasِ aِ highِ capacityِ andِ itsِ systemsِ work
efficientlyِ andِ theِ accountingِ systemِ isِ strongِ andِ highlyِ efficientِ andِ
providesِ reportsِ andِ informationِ forِ decision-makingِ toِ theِ fullest.
70
As for the company reveals all the accounting information
related to it or there is a kind of secrecy, heِ saidِ thatِ theِ companyِ
revealsِ allِ relatedِ informationِ inِ annualِ financialِ reportsِ andِ publishedِ itِ
onِ theِ website,ِ whereِ theِ financialِ reportsِ includingِ allِ informationِ
aboutِ theِ companyِ andِ matchedِ toِ theِ needsِ ofِ users.
ِ
In case errors are discovered after taking a decision, the right
behavior the company does,ِ Mr.ِ Mustafaِ explainedِ thatِ theِ Appropriate
actionِ undertakenِ byِ theِ company,ِ firstِ determineِ theِ sizeِ ofِ theِ damageِ
causedِ byِ theِ wrongِ decisionِ andِ tryِ toِ findِ outِ theِ reasonsِ thatِ ledِ toِ
theِ errorِ inِ theِ decision-makingِ mayِ beِ theِ reasonِ forِ theِ informationِ
systemِ orِ decision-makerِ orِ inِ theِ accountingِ informationِ andِ thenِ work
toِ avoidِ theِ errorِ inِ anotherِ time.
About the participation of the accounting department in the

decision making, he explainedِ thatِ theِ accountingِ departmentِ
participatesِ inِ decision-makingِ whereِ theِ accountingِ departmentِ worksِ
toِ prepareِ theِ financialِ statementsِ thatِ includeِ accountingِ informationِ
forِ decision-making.
As for the completely depend on the decision makers or there is

a room for the administration to interfere in this regard, saidِ thatِ theِ
administrationِ ofِ theِ companyِ whoِ makeِ decisionِ forِ theِ companyِ andِ
departmentsِ inِ theِ companyِ participateِ inِ toِ provideِ theِ reportsِ andِ
informationِ neededِ forِ decision-makingِ process.
71
About the preparers of the financial reports highly
knowledgeable with the required information, heِ stressedِ thatِ theِ
preparersِ ofِ theِ financialِ statementsِ shouldِ beِ haveِ aِ highِ degreeِ ofِ
expertiseِ andِ knowledgeableِ ofِ theِ informationِ requiredِ byِ managementِ
toِ facilitateِ decision-makingِ process.
Decisions taken according to the accounting information, heِ

saidِ thatِ decisions-makingِ processِ isِ basedِ onِ informationِ availableِ toِ
management.
About the accounting information role in the goodness and

competence of the taken decision, heِ stressedِ thatِ ifِ theِ accountingِ
informationِ isِ correctِ theِ decisionِ takenِ isِ correct,ِ whereِ thereِ isِ aِ
positiveِ relationshipِ betweenِ accountingِ informationِ andِ takenِ decisions.
72
73
Chapter -6-
Results and
Recommendations
74
6.1 Results:
Afterِ theِ studyِ wasِ conductedِ theِ researchِ reachedِ toِ theِ
following:
1. Managementِ knowsِ theِ roleِ ofِ accountingِ informationِ inِ theِ

rationalizationِ ofِ theِ decisionِ making.
2. Theِ decisionِ isِ upِ toِ theِ administrationِ always.
3. Sometimes,ِ theِ inabilityِ ofِ theِ decisionِ makerِ toِ identifyِ theِ
informationِ neededِ forِ decision-makingِ process.
4. Sometimesِ theِ inabilityِ ofِ theِ preparersِ ofِ financialِ statementsِ toِ
provideِ theِ accountingِ informationِ asِ required.
5. Theِ inabilityِ toِ seeِ periodicِ financialِ reportsِ ofِ theِ company.
6. Sometimesِ notِ havingِ theِ accountingِ informationِ includeِ theِ

requiredِ characteristics.
7. Someِ ofِ theِ dailyِ decisionsِ madeِ duringِ theِ yearِ youِ needِ toِ
periodicِ reportsِ andِ thusِ increaseِ theِ effortsِ ofِ theِ preparersِ ofِ
financialِ statementsِ inِ theِ company.
8. Mayِ theِ collectionِ ofِ informationِ necessaryِ forِ decision-makingِ

processِ requireِ moreِ timeِ thatِ theِ decisionِ makerِ canِ notِ waitِ byِ
theِ natureِ ofِ theِ problemِ thatِ sometimesِ needِ aِ quickِ solution.
9. Errorsِ foundِ inِ theِ informationِ leadsِ toِ errorsِ inِ theِ decisionِ toِ the
detrimentِ theِ interestsِ ofِ theِ company.
75
10.Thereِ isِ aِ positiveِ relationshipِ betweenِ theِ extentِ ofِ usingِ
accountingِ informationِ inِ decision-makingِ andِ takenِ decision,ِ ifِ
theِ accountingِ informationِ isِ correctِ theِ decisionِ takenِ isِ correct.
6.2 Recommendations:
Byِ theِ resultsِ thatِ haveِ beenِ reachedِ andِ toِ highlightِ theِ
importanceِ ofِ usingِ accountingِ informationِ inِ decisionِ making,ِ theِ twoِ
Researchersِ proposedِ aِ setِ ofِ recommendations.
1. Administrationِ mustِ participateِ allِ theِ departmentsِ inِ theِ decision-

makingِ process.
2. Giveِ anِ opportunityِ forِ staffِ andِ accountantsِ toِ makeِ theirِ viewsِ
inِ theِ resolutionِ andِ suitabilityِ andِ thenِ analyzeِ theِ dataِ andِ
accessِ toِ theِ decisionِ inِ theِ applicationِ ofِ theِ decisionِ orِ change,ِ
inِ lineِ withِ theِ objectives.
3. Mustِ chooseِ theِ bestِ alternativeِ inِ theِ decision-makingِ processِ inِ
lineِ withِ theِ objectivesِ andِ interestsِ ofِ theِ company.
4. Jointِ employeesِ whoِ specializeِ inِ preparingِ financialِ reportingِ and

accountingِ informationِ inِ trainingِ coursesِ toِ acquireِ skillsِ andِ
practicalِ experienceِ andِ knowledgeِ ofِ accountingِ information.
5. Importanceِ ofِ publishِ theِ accountingِ informationِ aboutِ theِ

companyِ forِ allِ users.
6. Importanceِ ofِ analyzingِ financialِ statementsِ inِ orderِ toِ compareِ

betweenِ previousِ yearsِ andِ theِ currentِ financialِ reports.
7. Workِ toِ provideِ informationِ quicklyِ andِ withِ desiredِ properties.
76
8. Learningِ fromِ mistakesِ thatِ occurِ inِ decision-makingِ process,ِ
bothِ inِ financialِ reportingِ orِ accountingِ informationِ collectionِ
methodsِ andِ avoidedِ inِ theِ comingِ times.
References
77
References:
Arabic references:
Books:
1.ِ Kanaan,ِ Nawaf.ِ (1998),"ِ managementِ decision-makingِ betweenِ
theoryِ andِ practice",ِ 5thِ edition,ِ Amman,ِ Jordan.ِ Pِ 75.
Articles:
1.ِ El-ِ Amri,ِ Mohammed,ِ (2011).ِ "Theِ definitionِ andِ importanceِ ofِ theِ
decisionِ makingِ inِ ourِ lives,"ِ Encyclopediaِ ofِ learningِ theِ skillsِ ofِ
success,ِ Foundationِ forِ Humanِ Development,ِ Kingdomِ ofِ Saudiِ
Arabia.
Theses:
1.ِ Alhubaity,ِ K.ِ ِ &ِ Alsaqah,ِ Z.ِ (2003),"Accounting Information system",
Unpublishedِ Masterِ Thesis,ِ Ellhaddbaaِ Collegeِ inِ Iraq.
2.ِ Shubair,ِ Ahmed,ِ (2006)."The role of accounting information in
managerial decision making",ِ Unpublishedِ Masterِ Thesis,ِ Theِ
Islamicِ Universityِ ofِ Gaza.ِ
Foreign References:
Books:
1. Artill,ِ P.ِ &ِ Mclaney,ِ E.ِ (2005),ِ "Financialِ Accountingِ forِ decisionِ
making",ِ 4thِ edition,ِ prenticeِ hall,ِ p.2.
78
2. Atrill,ِ Pِ &ِ Mclancy,ِ E,ِ (2009),ِ "Managementِ accountingِ forِ
Decisionِ Makers",ِ 4thِ edition,ِ prenticeِ hall,ِ Pِ 14.
3. Kieso,ِ D.ِ &ِ etِ al.ِ (2011),ِ "Intermediateِ Accounting",ِ volumeِ 1,ِ
IFRSِ edition,ِ PP.43.44.
4. Mclaney,ِ E.ِ &ِ Artill,ِ P.ِ (2009),"Managementِ Accountingِ forِ
Decisionِ Makers",ِ 4thِ edition,ِ prenticeِ hall,ِ PPِ 2ِ &ِ 14.
5. Nutt,ِ P.ِ C.ِ (1994).ِ Typesِ ofِ organizationalِ decisionِ processes.ِ

Administrativeِ Scienceِ Quarterly,ِ PP,ِ 29.
6. Romney.ِ Mِ &ِ Steinbart.ِ P,ِ (2008)"Accountingِ Informationِ
System",ِ prenticeِ hall,ِ 10th,ِ Pِ 5.
7. Romeny,ِ Mِ &ِ Steinbart.ِ P,ِ (2008)."Accountingِ Informationِ
System",ِ prenticeِ hall,ِ 10thِ edition.ِ P,ِ 5ِ &ِ 13.
8. Saunders,ِ Mِ &ِ et al,ِ (2003),ِ "Researchِ Methodِ forِ Businessِ
Student",ِ 3rdِ edition,ِ Pِ 245.
9. Saunders,ِ Mِ &ِ etِ al,ِ (2003),ِ "Researchِ Methodِ forِ Businessِ
Student",ِ 3rdِ edition,ِ Pِ 245.
10.Williams,ِ J.ِ &ِ etِ al,ِ (2007),"Financialِ andِ Managerialِ
Accounting",ِ theِ basisِ forِ businessِ decision,ِ 12thِ edition,ِ Pِ 5ِ &ِ
28.
11.Zimmerman.ِ J,ِ (1995),ِ "Accountingِ forِ Decisionِ Makingِ &ِ
control",ِ IRWIN,ِ P.2.
Theses:
1.ِ Dumitrana.M,ِ Radu.ِ Gِ &ِ etِ al,ِ (2008),ِ "Theِ Useِ ofِ Theِ Accountingِ
Informationِ inِ Decisionِ Makingِ inِ theِ Hospitalityِ Business",ِ
Bucharestِ Academyِ ofِ Economicِ Studies.
2.ِ El-ِ Amri,ِ Mohammed,ِ (2011),ِ "Definitionِ andِ importanceِ ofِ theِ
decisionِ takenِ inِ ourِ lives",ِ (On-line),ِ Encyclopediaِ ofِ learningِ theِ
skillsِ ofِ success,ِ www.sst5.com.
79
3.ِ Fülöp,ِ János,ِ (Unknown),ِ "Introductionِ toِ Decisionِ Makingِ
Methods",ِ Laboratoryِ ofِ Operationsِ Researchِ andِ Decisionِ Systems,ِ
P.11.
4.ِ Ireland,ِ R.ِ D.,ِ &ِ Miller,ِ C.ِ C.ِ (2004).ِ Decisionِ makingِ andِ firmِ
success.ِ Academyِ ofِ Managementِ Executive,ِ pp,ِ 8ِ –12.
5.ِ Sharayri.ِ Mِ &ِ Momani.ِ G,ِ (2011),ِ "The Impact of Reliability and
Relevance of Financial Position Information on Decision Making",ِ the
Reviewِ ofِ Financialِ andِ Accountingِ Studies.
6.ِ Harris,ِ Robert.ِ (2009),"ِ Introductionِ toِ Decisionِ Making",ِ
VirtualSalt,ِ (On-line),ِ http://www.virtualsalt.com/crebook5.htm.
7.ِ Harris,ِ Robert.ِ (1998),"ِ Planningِ forِ Decisionِ Making",ِ VirtualSalt,ِ
(On-line),ِ http://virtualsalt.com/crebook6.htm.
8.ِ Harris,ِ R.ِ (1998),"Introduction to Decision Making",ِ VirtualSalt,ِ (On-
line),ِ http://www.virtualsalt.com/crebook5.htm.
Websites:
1.ِ http://www.accounting-tutorial.com/users-accounting-information
2.ِ http://accountlearning.blogspot.com/2009/10/internal-users-of-accounting.html
3.ِ http://www.brainyquote.com/words/de/decision151695.html
4.ِ http://www.businessdictionary.com/definition/decision.html
5.ِ http://www.buzzle.com/articles/advantages-and-disadvantages-of-group-
decisions.html
6.ِ http://www.ehow.com/about_6319335_purpose-producing-accounting-
information.html
7.ِ http://hrmadvice.com/hrmadvice/useful-hr-tools/hr-swot-examples.html
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making.html
80
11.ِ http://www.rapid-business-intelligence-success.com/rational-decision-making-
model.html
12.ِ http://simplestudies.com/introduction-to-accounting.html
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Appendix
81
‫بسم ِا ِالرحمن ِالرحيم‬
Islamicِ Universityِ –ِ Gaza ‫الجاَمعة ِالسلمية ِ– ِغزة‬
Facultyِ ofِ Commerce ‫كلية ِالتجاَرة‬
Departmentِ ofِ Accounting ‫قسم ِالمحاَسبة‬
Dearِ Gentlemen:ِ ِ ِ ِ Jawwalِ Company.
Aِ studyِ aboutِ "usingِ accountingِ informationِ inِ makingِ

decisions",ِ aِ caseِ studyِ onِ theِ servicesِ sectorِ representedِ inِ
Jawwalِ Company.
I'dِ highlyِ appreciateِ itِ ifِ youِ answeredِ theِ followingِ
questionsِ forِ theِ sakeِ ofِ theِ scientificِ researchِ only.
82
Theِ researchers:
Islamِ ِ ِ Olwanِ ِ ِ ِ ِ ِ
Olaِ ِ ِ ِ ِ Qudaihِ ِ ِ ِ ِ ِ ِ ِ ِ ِ ِ
The Questions of the Personal Interview

1.ِ Doِ youِ dependِ completelyِ onِ theِ informationِ foundِ inِ theِ financialِ
reports?
2.ِ Doِ youِ thinkِ thatِ accountingِ informationِ includedِ inِ financialِ reportsِ
hasِ allِ necessaryِ informationِ forِ theِ company,ِ orِ thereِ isِ secretِ
informationِ whichِ noِ oneِ hasِ theِ rightِ toِ know?
3.ِ Fromِ yourِ pointِ ofِ view,ِ areِ theِ accountingِ informationِ foundِ inِ theِ
Annually,ِ Semiannuallyِ orِ quarterlyِ financialِ statementsِ sufficientِ for
aِ decisionِ maker?
4.ِ Isِ thereِ aِ comparisonِ betweenِ theِ currentِ accountingِ informationِ andِ
theِ previousِ oneِ uponِ whichِ aِ decisionِ canِ beِ taken?
5.ِ Doesِ theِ decisionِ makerِ useِ theِ accountingِ informationِ inِ takingِ
rationalِ decisions?
6.ِ Areِ thereِ anyِ otherِ piecesِ ofِ informationِ whichِ affectِ inِ decisionsِ
making?
7.ِ Whatِ areِ theِ mainِ obstaclesِ forِ usingِ theِ accountingِ informationِ inِ
takingِ aِ decision?
8.ِ Canِ decisionِ makersِ beِ consideredِ highlyِ qualifiedِ andِ
knowledgeableِ withِ accountingِ informationِ andِ takingِ decisionsِ
dependingِ onِ them?ِ ِ
9.ِ Isِ theِ accountingِ informationِ presentedِ inِ theِ dueِ timeِ andِ withِ theِ
neededِ amount?
83
10.ِ Isِ theِ presentedِ accountingِ informationِ comprehensiveِ andِ sufficientِ
asِ required?
11.ِ Doesِ theِ accountingِ informationِ dependِ onِ predictionِ inِ futureِ
dependingِ onِ theِ currentِ state?
12.ِ Doِ theِ internalِ andِ externalِ circumstancesِ affectِ onِ theِ informationِ
andِ theِ accountingِ statusِ inِ theِ company?
13.ِ Doesِ theِ companyِ revealِ allِ theِ accountingِ informationِ relatedِ toِ itِ
orِ thereِ isِ aِ kindِ ofِ secrecy?ِ Ifِ any,ِ onِ what?
14.ِ Inِ caseِ errorsِ areِ discoveredِ afterِ takingِ aِ decision,ِ whatِ isِ theِ rightِ
behaviorِ theِ companyِ does?
15.ِ Doesِ theِ accountingِ departmentِ participateِ inِ takingِ theِ decision?
16.ِ Doِ youِ completelyِ dependِ onِ theِ decisionِ makersِ orِ thereِ isِ aِ roomِ
forِ theِ administrationِ toِ interfereِ inِ thisِ regard?
17.ِ Areِ theِ financialِ reportsِ preparersِ highlyِ experiencedِ andِ accurate?
18.ِ Areِ theِ preparersِ ofِ theِ financialِ reportsِ highlyِ knowledgeableِ withِ
theِ requiredِ information,ِ andِ doِ theyِ helpِ theِ highِ administrationِ inِ
takingِ theِ decision?
19.ِ Noneِ canِ denyِ thatِ theِ takenِ decisionsِ dependِ onِ theِ accountingِ
information,ِ ifِ itِ isِ correctِ andِ true,ِ itِ givesِ credibilityِ andِ
seriousness.ِ Whatِ doِ youِ thinkِ aboutِ this?
20.ِ Doesِ theِ accountingِ informationِ playِ aِ roleِ inِ theِ goodnessِ andِ
competenceِ ofِ theِ takenِ decision?
84
85

Using Accounting Information in Decision Making

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‫بسم ا الرحمن الرحيم‬

Islamic University – Gaza ‫الجاماعة السإلماية – غزة‬

Using Accounting Information in

Islam Mohammed Olwan 220082166

A thesis Submitted in Partial Fulfillment of the

‫بسم الله الرحمن‬

‫ييررفيعع ِاللهه ِاللعذيين ِآيمهنِوُا ِعمنِهكرم ِيواللعذيين"‬

CHAPTER 1: RESEARCH PROPOSAL.

CHAPTER 2: LITERATURE REVIEW.

CHAPTER 3: JAWWAL COMPANY.

CHAPTER 5: APPLIED STUDY.

1.4 Research Objectives:

1.5 Significance of the research:

1.6 Scope and limitations of the research:

1.7 Research hypotheses:

Sources to collect information:

1.9 Related works:

1.9.2 Foreign References

2. Sharayri & Momani study (2011):

Theِ studyِ aimedِ toِ achieveِ theseِ objectives:

1.10 Time table and budget:

2.1.2 What is accounting?

Accountingِ isِ concernedِ withِ collecting,ِ analyzingِ andِ

2.1.3 Uses of accounting:2+3

2.1.4 Accounting as a service activity?

2.1.6 What is accounting information?

2.1.7 Qualitative characteristics of accounting information:1

Relevance Faithful representation

Predictive Confirmatory Free from

Comparability Verifiability Timeliness Understandability

2.7.1 Fundamental Qualities:

Figure: 2.1.3 Fundamental Qualities (Relevance).1

Figure: 2.1.4 Fundamental Qualities (Faithful Representation).1

Completeness Neutrality Free from error

Faithfulِ representationِ meansِ thatِ theِ numberِ andِ descriptionsِ

Figure: 2.1.5 Enhancing Qualities.1

2.1.8 Sources of accounting information:

1. Statement of financial position:

3. Statement of cash flow:

2.1.10 Accounting information and user needs:

Figure 2.1.6 Users of accounting information.3

Externalِ Usersِ Internalِ Usersِ

2.1.11 Users of accounting information:1

2.1.12 Purpose of using accounting information:1

2.2.2 What is decision?

All these definitions can be collected in one definition which is:

2.2.3 Definition of decision making:

All these definitions can be collected in one definition which is:

Decision making:ِ isِ theِ processِ ofِ makingِ a choice betweenِ aِ

The following is an explanation about the key parts of the definition:

3. The right thing to do:

2.2.5 Decision making levels:2

Three levels of decision have been identified:

Importantِ commentِ shouldِ beِ madeِ here.ِ Issuesِ shouldِ beِ

Whatِ shouldِ weِ doِ toِ helpِ facilitateِ employeesِ - Managers

2.2.6 Types of decision making:

2. Bounded rationality decision making:ِ

3. Intuitive decision making:

4. Creative decision making:

Decision Making Model Use This Model When

 Informationِ onِ alternativeِ canِ beِ gatheredِ andِ

 Theِ minimumِ criteriaِ areِ clear.

 Goalsِ areِ unclear.