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Management Accounting
Notes 4. Specifi c Report: These reports may be prepared at the request of general management or at
the initiative of the controller. The necessity for them may, in some cases, arise on account
of the need for more detailed information on matters of interest first revealed by the routine
reports. These reports may range over a very wide read. Some of the matters in respect of
which such reports may be required can be:
(a) Taxation legislation and its effects on profi ts
(b) Estimates of the earning capacity of a new project
(c) Breakeven analysis
(d) Replacement of capital equipment
(e) Special pricing analysis
(f) Make or buy certain components
(g) Statement of surplus available for payment of bonus.
Task Prepare the proforma of fi nancial reports prepared by the top management of the
an organisation.
Self Assessment
Fill in the blanks:
12. Performance report must clearly distinguish between …………… and …………… items.
13. …………… procedures constitute a key aspect of effective control.
14. Group and individual …………… should be held at the various management levels for
effective correction action.
15. …………… may signal danger and further investigation generally is necessary to pinpoint
the precise cause.
14.5 Summary
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.
A good reporting system is helpful to the management in planning and controlling.
Management Information System is a very important function of any organization in
today’s global economy.
Performance measures are a central component of management information and reporting
system.
There are financial and non-financial performance measures.
The performance measures at different levels of management have been discussed in this
unit.
The features of performance reports and the formats have been explained with suitable
illustrations.
There are different reports based on different levels of management.
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