Page 274 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 14: Management Reporting and MIS

14.6 Keywords Notes

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.
Management Information System (MIS): It refers to the data equipment and computer
programmes that are used to develop information for managerial use.
Management Reporting: The process of providing information to the management is known as
management reporting. The reports are regularly sent to various levels of management as to
enable in judging the effectiveness of their responsibility centres. These reports also become a
base for taking corrective measures, if necessary.
Performance Measures: A form of reporting for different levels of an organization and for managers

on financial and non-financial performances. It is useful for allocation of resources, costs, revenues.
Report: Report is a form of statement that presents and examines facts relating to an event, problem,
progress of action, state of business affairs etc. and for the purpose of conveying information,

reporting findings, putting forward ideas and making recommendations as the basis of action.

14.7 Review Questions

1. Why are performance measurements required in Management Information System?
2. What are the financial performance measures?

3. What are the non-financial performance measures?

4. What are the information relationships at various levels of manufacture?

5. Discuss performance reporting at various levels of management. Give examples of some
reports.
6. How can accounting based performance measures be designed?

7. All managers require information to perform their managerial functions. What are the key
managerial functions and the role of information system in their performance?
8. Suggest some principles for preparing a good reporting system.
9. Only an effective information system can provide managers with both internal and external
information that is timely and accurate. Discuss.
10. Different types of reports are prepared at different levels of management. Discuss.

Answers: Self Assessment

1. controlling 2. information
3. graphic presentation 4. comparative

5. excessive cost 6. True
7. False 8. False
9. True 10. management information
11. resources 12. controllable, non-controllable
13. Follow-up 14. conference

15. Unfavourable variances

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