Management Reporting in Accounting for Bcom Semester 6
Learn about the meaning and objectives of management reporting, its importance in measuring performance, providing information to management, aiding in controlling activities, and satisfying various interested parties. Explore different types of reports, including external, internal, enterprise, and control reports. Enhance your knowledge of management reporting for effective decision-making in the business world.
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Presentation Transcript
Subject :Management Accounting Class:Bcom 6th semester Topic:Management Reporting Submitted By :Komal Galhotra Commerce Department college:I.B (PG )College,Panipat Affiliated to kurukshetra university,kurukshetra
Meaning of Management reporting It is a system that informs the managers about the business with the help of reports. It is a part of management control system that gives information to various level of management in the form of reports at regular intervals.
Objective of Management reporting 1 - Measure performance : It helps to measure the performance of employees. It helps the management in deciding about promotion and incentives of employees.
2 -provides information : The main purpose of management report is to provide information to various level of management such as cash flow and fund flow.
3- Help in controlling : Management reports helps management to check whether work is being done as per targets and standards set. Actual performance are compared with target for taking corrective action. 4- Satisfy the interested parties : The interested parties are top managers, government, creditors ,customers.Different types of management reports are prepared to satisfy above mentioned parties.
Types of reports Types of reports 1 - on the basis of object and purpose A : External Reports :External reports are the reports prepared for external users such as investors, creditors etc. These are issued to users who need to evaluate the financial condition of the entity.
B_ Internal Reports : These reports are prepared by the management accountant and submitted before the different level of management for the purpose of planning and controlling. 2- on the basis of nature : A_ Enterprise report : It is a complete corporate performance report .It provides an efficient system for collecting and reporting on information from across the organisation with a high degree of flexibility.
B_control Reports: These are prepared to help the management in excercising the control over the operations of the concern, are known as control reports. C_Investigative Reports :These reports is related to control reports. These are prepared only when situation arises. It helps the management to analyze the cause of a problem.
3-on the basis of period : A_Routine Reports : These are the reports submitted to the management at periodic interval which can be daily, weekly, monthly, quarterly or yearly like as production reports, monthly sales report. B_Special Reports : These are prepared and presented on some special instances according to the need of the situation like as Make or buy decision, Technical report.
4_On the basis of function : A_Operating Reports : These are the reports that provide information about the operations of an organisation.It consists of : A_Control Reports B_information Reports C_Financial Reports
Essential of Management Reporting 1_Flow of Information : The information in the report should be complete and consistent. Also, it should flow from and to the right level of authority.
2- Simple : The report should be prepared in clear ,simple and understandable language and main focus areas should be highlighted. 3 _cost consciousness : The cost of preparing report should be reasonable. It should not be to more than the advantage derived from such report. 4_Clear: It should be clear, brief and concise. It should contain graphs, charts, diagrams.
5-Adaptable: The format of report should be suitable and understandable to the person who are going to use the report. It should be prepared as per the need of the top,middle,lower level of management.
