Page 205 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II

Notes (iii) Raw material budget and actual purchases, and
(iv) Budgeted cost and actual cost of purchases
(d) Reports to the Works Manager: The reports submitted to the Works Manager are:
(i) Production cost report
(ii) Raw material budget and actual consumption
(iii) Production budget and actual production
(iv) Idle time report
(e) Idle capacity report Reports to the Sales and Marketing Managers: The following reports
are to be submitted to the Sales and Marketing Manager:
(i) Report of budgeted and actual sales,
(ii) Report of orders booked and executed,
(iii) Statement of sales,
(iv) Finished goods stock position and
(v) Position of collections and debtors.

Note With modernisation and adoption of computers in the business house, the reporting
period has been reduced tremendously and the data are ready at hand and these can be
used to prepare reports instantly. Middle level management is connected on line with the
computers within the organisation, so preparation of reports has become easy.

3. Lower Level Management Reports: At this level foremen and supervisors are concerned at
the floor and they prepare their reports physically without any expert opinion. They are
concerned with the daily work and they infuse a certain amount of competitive spirit
among the workers by comparing the output per man per hour in a similar job. These
reports include the following factors:
(i) Workers efficiency report,
(ii) Daily production report,
(iii) Workers utilisation report and
(iv) Scrap report
(v) Over-time report
(vi) Material spoilage report
(vii) Accident report etc.

Self Assessment

Fill in the blanks:
7. The reports at …………………… level should show the efficiency and cost data relating to
different departments.
8. With modernisation and adoption of …………………… in the business house, the reporting
period has been reduced tremendously.
9. In case of …………………… foremen and supervisors are concerned at the floor and they
prepare their reports physically without any expert opinion.

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