Page 213 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II

Notes  Mode of reporting is also important regarding the presentation.
 Report can be a users report or information report or any other type of report.
 Certain guiding principles such as brief, sequencing, consistency, comparability, timeliness,
accuracy, attractiveness, simplicity, shape and contents are very important and these should
be taken into mind while preparing a report.

11.7 Keywords

Dynamic Financial Report: The information regarding the change that took place in the position
of assets and liabilities of a firm is contained in this.
Graphic Reports: Report containing information supplied in the form of charts, diagrams, pictures
etc.
Information System: It is a set of elements joined together for a common objective. An information
system can be defined as the means by which information is generated and communicated to
managers at various levels to help them in the decision-making process.
Information: Information consists of data that have been retrieved processed or used for
informative and inference proposes or as a base for forecasting or decision-making.
Operating Reports: It contains information regarding the operating of a business at different
functional levels.
Reporting: It means providing information to the person concerned.
Static Financial Report: It provides information about the position of assets and liabilities of
the concern.
11.8 Review Questions

1. What do you mean by accounting reports?
2. What are the different types of reports for internal use? Discuss each of them.
3. What are the special reports? What matters may be covered by the special reports?
4. Describe the reporting needs of different levels of management and how can a system of
reporting satisfy it?
5. What are the essentials of a good report? Describe.
6. Explain the different types of reports that are used in an enterprise.

7. “Accounting reports are a matter of necessity for the management and not a matter of
convenience.” Discuss.

Answers: Self Assessment

1. Communication 2. Internal

3. effective 4. Accounting
5. Effectiveness 6. two
7. Middle 8. Computers
9. Lower level management reports 10. Internal

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