Analysis of Cognitive Bias and Ambiguity in Managerial Accounting Decision Making

Abstract

This study aims to analyze in depth the role of cognitive bias and ambiguity in the managerial accounting decision-making process in military organizations, particularly in the Iskandar Muda Military Command. This study uses a descriptive qualitative approach with data collection techniques in the form of in-depth interviews, non-participant observation, and documentation. The research informants came from the Ir, Asren, Dadenma, and Kakudam elements who were directly involved in the financial management and managerial decision-making processes. Data analysis was carried out through the stages of data reduction, data presentation, and conclusion drawing, with validity testing using triangulation, peer discussion, and member checking. The results of the study show that cognitive biases in the form of overconfidence, anchoring, and availability bias arise at the stages of budget planning, activity evaluation, and financial report interpretation. In addition, information ambiguity, role ambiguity, and organizational goal ambiguity also increase uncertainty in the decision-making process. These two factors have an impact on the accuracy of budget estimates, the quality of performance evaluations, and the effectiveness of internal controls. The study emphasizes the importance of strengthening information systems, improving the analytical competence of personnel, and refining control procedures to minimize distortions in managerial decisions.