Definition of fixed Budget The Institute of Costs and Management Accounts (U.K) defines a fixed budget as “Fixed budget are those that are drafted to remain the same
Advantages of reporting to management The following advantages are available through reporting to management system. 1. It helps the management to understand functional areas of an organization. 2.
The following process may be followed to write a report. The process has various stages. 14 important stages in writing a report are explained briefly below. This is
A good reporting system helps the management in proper planning and controlling. If the reports are available to every level of management at the proper time, current activities
The presenting report should satisfy the needs of various levels of management. The levels of management can be divided into three categories. They are, 1. Top level management.
The following steps should be taken while initiating the installation of reporting system in an organization. Steps in installation of reporting system 1. The functional areas of the
Business reporting system Under the present competitive world, a reporting system is a must for increasing the understanding and generating confidence in the minds of management team and
Understanding Variance analysis The primary objective of variance analysis is to exercise cost control and cost reduction. Under standard costing system, the management by exception principle is applied
The followings are the limitations, drawbacks, setbacks of the Standard Costing Technique. Limitations of Standard Costing 1. More Expenses: The standard is fixed for raw materials in terms
Standard costing can be used as management tool. By knowing cost information, the management can take effective decision. Besides, the following advantages can be derived by using standard