Class : B.Com 3 year
Subject : Management Accounting
Teacher's name: Dr. Asmita Jain
Topic Meaning, defination and importance Report for management
1. Meaning of Report
A report is a formal, systematic and objective written document that presents facts, findings, analysis and recommendations to management for decision-making.
In management, a report is prepared after collecting and analyzing data related to business activities such as sales, production, finance, employees or projects.
👉 In simple words:
A management report tells managers what is happening in the organization and what should be done.
2. Definition of Report for Management
Some standard definitions are:
• According to E. Thomas:
"A report is a formal statement of facts or results of an investigation."
• According to C.A. Brown:
"A report is a systematic presentation of facts for the purpose of decision-making."
• Management Definition:
A management report is a written document that provides relevant information, analysis and suggestions to managers to help them plan, control and take effective decisions.
3. Importance of Report for Management
Reports play a very important role in management. Their importance is explained below:
1. Helps in Decision-Making
Management takes important decisions related to pricing, expansion, cost control, investment, etc.
Reports provide accurate and reliable information, making decisions easy and effective.
2. Basis of Planning
Future planning depends on past and present data.
Reports help management in:
• Setting goals
• Forecasting sales
• Budget preparation
3. Control and Performance Evaluation
Reports help in comparing:
• Actual performance vs planned performance
This helps management to identify deviations and take corrective action.
4. Improves Communication
Reports act as a formal means of communication between:
• Top management
• Middle management
• Lower management
5. Helps in Policy Formation
Management uses reports to:
• Frame new policies
• Modify existing policies
based on facts and analysis.
6. Problem Identification and Solution
Reports help in identifying:
• Business problems
• Causes of problems
They also suggest solutions and recommendations.
7. Legal and Record Value
Reports serve as:
• Permanent records
• Legal evidence when required
They are useful for future reference.
Subject : Management Accounting
Teacher's name: Dr. Asmita Jain
Topic Meaning, defination and importance Report for management
1. Meaning of Report
A report is a formal, systematic and objective written document that presents facts, findings, analysis and recommendations to management for decision-making.
In management, a report is prepared after collecting and analyzing data related to business activities such as sales, production, finance, employees or projects.
👉 In simple words:
A management report tells managers what is happening in the organization and what should be done.
2. Definition of Report for Management
Some standard definitions are:
• According to E. Thomas:
"A report is a formal statement of facts or results of an investigation."
• According to C.A. Brown:
"A report is a systematic presentation of facts for the purpose of decision-making."
• Management Definition:
A management report is a written document that provides relevant information, analysis and suggestions to managers to help them plan, control and take effective decisions.
3. Importance of Report for Management
Reports play a very important role in management. Their importance is explained below:
1. Helps in Decision-Making
Management takes important decisions related to pricing, expansion, cost control, investment, etc.
Reports provide accurate and reliable information, making decisions easy and effective.
2. Basis of Planning
Future planning depends on past and present data.
Reports help management in:
• Setting goals
• Forecasting sales
• Budget preparation
3. Control and Performance Evaluation
Reports help in comparing:
• Actual performance vs planned performance
This helps management to identify deviations and take corrective action.
4. Improves Communication
Reports act as a formal means of communication between:
• Top management
• Middle management
• Lower management
5. Helps in Policy Formation
Management uses reports to:
• Frame new policies
• Modify existing policies
based on facts and analysis.
6. Problem Identification and Solution
Reports help in identifying:
• Business problems
• Causes of problems
They also suggest solutions and recommendations.
7. Legal and Record Value
Reports serve as:
• Permanent records
• Legal evidence when required
They are useful for future reference.
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