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Types of management accounting reports
Course: Managerial accounting (BUS 4133)
18 Documents
Students shared 18 documents in this course
University: كليّات التقنيّة العليا
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Explain different types of management accounting reports.
The various management accounting reports help the management in preparation of
appropriate management reports which counts on their forecasts for making critical
business decisions. They provide managers with accurate and reliable statistical and
financial information. The various reports prepared by the management and their benefits
are discussed under:
1- Budgeting Reports – Budgetary Reports sets out the plan to analyse the company
performance while making evaluations about the department’s performance and
control costs.
For budget preparation, actual expenditure occurred in past periods get utilised. These
budget reports are used to provide incentives to employees that motivate them to
achieve desired objectives. Forecasting future budget based on these reports helps the
organisation to integrate the efforts of various departments towards overall objective
of the company.
2- Accounts receivable aging report – This type of report is concerned with
managing account receivables for these companies which are engaged in
extending the credits to their customers. Proper segregations of invoices are made
for the customer’s balances about how long they have been owed. It points out the
problems associated with company’s collection process. An analysis can be made
about the company’s credit policy and the need to tighten the credit policy. This
ensures reducing old bad debts and maintaining liquidity of the company.
3- Job cost reports – Job costs reports are concerned with identifying cost,
expenses, and profitability of each particular job. An evaluation can be made
about the earning aspect of the projects and so that the company can introduce its
efforts on those concerned while reducing their efforts on less profitable business
activities. These reports also evaluate the cost while the project is in progress so