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  Costing Reports

Introduction of costing report

Information is the life blood of business. The effectiveness of an organisation is to a certain point governed through the regularity and relevance of the information given to those who carry out the functions of management. The needed information is supplied by reports that might be oral, graphic or written. Though, oral reports should not form the base of significant managerial decisions. It would be advisable to comprise the reports all the time in writing. Graphic reports in the form of charts and diagrams facilitate fast grasp of important trends by those who undergo such types of reports.

Meaning of Report

A report is a formal communication that moves forward. It is different from the word communication. The better communicates orders to the subordinate. The subordinate communicates results. The term report is usually employed for the factual communication through a lower level to a higher level of authority. So orders are communicated when results are "reported".

The word "reporting to management" considers to the formal system whereby by reports appropriate information is continually fed, to the management. It has how become a particular function. Large concerns these days have a separate management information division'. The Information Manager should know not only the information each level of management needs but also the methods to be employed for collecting, storing, processing and at last communicating the needed information.

Reporting is a significant output of accounting function. Accountant is the custodian of factual data concerning cost, sales and profits and hence he gives a helpful information service. Relies on the size of the business, the information might be collected and communicated to the management through the accountant himself or the management/accountant or Information Manager who might be heading a separate Management Information Division.

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