Page 149 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting

Notes Need of reporting differs at different management levels. This also differs to the user community
also. There are three levels of management and the reports can be classified according to the
needs as follows:
Top-Level Management Reports
Middle Level Management Reports

Lower Level Management Reports
12.1.1 Top Management Reports

At this level reports are concerned with the following matters:
For determining the aims of the enterprise
For formulation of policies and plans
For delegation of responsibility in successful manner to executives for the best utlisation
of resources
For formulating special significant plans
It can be assumed that top brass of the business only needs reports for cost and operational
control. The report submitted to the level should be brief or we can call it a summarized
statement, which provides an overall view on the subject. Previously these reports used to be
submitted within the time framework. The time framework may be monthly, quarterly or
yearly. With the use of information technology and the real time accounting, the whole time
framework has been changed and now these can be made available online.
Reports to top level management consist of the following:
1. Reports to the Board of Directors
2. Reports to the Chief Finance Officer

3. Reports to the Chief Production officer
4. Reports to the Chief Executive Marketing and Sales

Task Identify the key records prepared by the Board of Directors and CEO.

12.1.2 Middle Level Management Reports

The middle level management consists of the heads of various departments. The reports at this
level should show the efficiency and cost data relating to different departments. At this level
execution of plans formulated by the top management is worked out and all the managers in
each department are concerned with this. It is also the function of middle level management to
coordinate different activities of different departments.

12.1.3 Lower Level Management Reports

At this level foremen and supervisors are concerned at the floor and they prepare their reports
physically without any expert opinion. They are concerned with the daily work and they infuse
a certain amount of competitive spirit among the workers by comparing the output per man per
hour in a similar job. These reports include the following factors:

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