Page 263 - DCOM302_MANAGEMENT_ACCOUNTING

Management Accounting Sukhpreet Kaur, Lovely Professional University

Notes Unit 14: Management Reporting and MIS

CONTENTS

Objectives
Introduction
14.1 Principles of a Good Reporting System
14.2 Introduction to Management Information System (MIS)
14.2.1 Attributes of Information

14.2.2 Information Needs of Managers
14.3 Performance Measures
14.4 Performance Reports: Format and Essential Features
14.5 Summary

14.6 Keywords
14.7 Review Questions
14.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the principles of good reporting system

Discuss the concept of MIS

Define performance Measures
Prepare performance reports and format

Introduction

The reporting system involves all levels of management. The reports originate from junior levels
of management and go up to top level management, consisting of Board of Directors. The sectional
in-charge of every section regularly reports the progress of his section to his superior. Functional
managers have Deputy Managers who control departmental sections. The combined reports
of different sections reach the departmental manager called functional managers. Different
functional managers submit the progress of their departments to the managing director. The brief
summaries of departmental reports are submitted to the Board of Directors for reviewing policies
and making strategy for the future. Information means data have been shaped into a form that is
meaningful and useful to human being. Data are stream of raw facts reporting events occurring
in organisation or physical environment before they have been organised and rearranged into a
form that people can understand and use.

14.1 Principles of a Good Reporting System

A good reporting system is helpful to the management in planning and controlling. Every level
of management needs information relating to its activities centre so that effective planning may

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