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Unit 11: Information System and Reporting to Management

11.4 Types of Reports Notes

Reports can be classified in various ways in which the different reports are presented to the
management such as:

1. Users Reports
2. Reports Based on Information
3. Reports Based on Nature

4. Functional Classification of Reports
Let us study each of them in brief.
1. Users Reports: Depending upon users, reports can be classified as follows:
(i) Internal Users Report
(ii) Special Reports

(iii) Routine Reports
(iv) Management Level Reports
(v) External Users Reports

Reports can be prepared according to the users. They can be:
(i) Internal Users: Reports, which are prepared for the use of different levels of
management and for the use of the employees, are known as the reports for internal
users. These are not public documents. These reports are aimed to different levels of
management.
(ii) Special Reports: These reports play a vital part in decision-making. They are prepared
for specific reasons. While preparing this type of report the problem under study
should be clearly defined and understood and effect of cost and income should be
considered. Comparison of cost of study and estimation of cost and income relating
to the problem should also be considered. These reports can be prepared for any of
the problems relating to:
(i) Market analysis
(ii) Make or buy decisions

(iii) Problems of raw material
(iv) Technological changes
(v) Labour problems

(vi) Cost reduction schemes
(iii) Routine Reports: These are only control reports and they are required only when a
control system exists. These are prepared daily as per scheduled time regarding
activities. Production operation reports, cost reports, research and development
reports, various budget reports, utilisation of man, machine and material reports,
report regarding customer default, sales and distribution report, administration
reports, income statement and balance sheet and cash flow statement are included in
this classification.
(iv) Management Level Reports

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