This paper provides a critical aspect of the position of the industrial sector in the transition economy of Bosnia and Herzegovina. If we observe sectors C-exploitation of coal and stone, D-processing industry, E-production and distribution of electric power, gas and steam, as per NACERev.1 classification, and sectors B-exploitation of coal and stone, C-processing industry, D-distribution of electric power, E-water, sanitation and recycling as per NACERev.2 classification, then from 2007 until 2012, their participation amounts to: 14.49%, 14.37%, 14.20%, 14.02%, 13.80%, 12.75% respectively. The paper observes the internal and the external reasons of the poor state of the industrial sector, and determines a possibility of its strengthening through recommendations that sum up results of the conducted research.

This paper presents the results of the primary research regarding management relations towards accounting information that is used in the business decision making process applied in manufacturing companies of the Tuzla Canton (here on: “TC”). The research commences from the fact that the interaction between accounting function organization quality and business decision making is important, because it has direct effect on applied practice when managing operating performances of a company. Taking into consideration management relations towards accounting information in the decision making process, dysfunctional areas within accounting function organization segments are identified. This opens up possibilities to affect modernization of the performance management through the process of redesign of those dysfunctional areas. According to our knowledge, similar research has not been conducted on the area of B&H manufacturing companies' operations.