Using Accounting Information in Decision Making of Hospitals Managers

Document Type: Original Article


1 Assistant Professor of Accounting, Faculty of management, University of Tehran, Tehran, Iran

2 Assistant Professor, Department of Accounting, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran,


Decision making process requires information. Accounting is the most important source of information. In 1998, the international federation of accountants issued a statement about the scope and using of accounting. It identified 4 stages for using accounting information: cost determination, planning and financial control, reduction of resources waste and creation the value. This study was designed to provide insights into using accounting information in managerial decision making. Using the IFAC classification, this study investigated evolution stage of using accounting information in hospitals. The study population consisted of financial employees working at the hospitals located in Tehran (Iran). The study sample consisted of 54 private hospitals and 82 public hospitals. The instrument of data collection was questionnaire. Results showed that hospitals managers don’t use accounting information to reduce resources waste and create the value. Maybe, it is because of little familiarity with accounting in hospitals. Private hospitals managers use accounting information to planning and control. However, Public hospitals managers only use accounting information to determine the services cost. Findings showed that public hospitals managers use accounting information less than private accounting. Maybe, it is because of less accountability and using governmental resources in public hospitals.



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