ACCT 232/432 MANAGEMENT ACCOUNTING GROUP ASSIGNMNET: GROUP 4

PARTICIPANTS:

Blessing S Dzimiri SU180214C

Nomusa Luwobo SU200149Z

Sibongekile A Mlilo 2014090059

Tendai Tete SU180440C

Tendayi Nemaungwe SU190122T

Emerina Maruza SU180502W

Isandra T Ndlovhu SU190678C

Pfungwa Bhami SU180618Q

Noreen Dewe SU190439Q

Ishmael Tavari SU180572E

Kuzivakwashe Mukonoweshuro SU170371P

Fungai Sithole SU180173B

ASSIGNMENT QUESTION

State and explain the Control Reports and their use in management
accounting

Control reports are management accounting reports that are used for management
control purposes. These management accounting reports receive information through
financial accounting and the information is used in planning, regulating, decision
making as well as measuring performance. These reports are important for decision
making by managers therefore they are generated throughout the accounting and
bookkeeping period as required. Managers analyze the reports so as to obtain useful
information which is vital to the strategic decisions that affect the organization as a
whole and the purpose of its existence (Maas, Schaltegger & Crutzen, 2016). The
different types of reports and their importance are discussed below.

Budget managerial accounting reports are reports that are generated for small
businesses or for a department-wise in a large organization. The Budget managerial
report is of outmost importance to an organization because they are used for measuring
the performance of an organization. The organization’s overall budget is made so as to
have a clear picture or an understanding of the grand scheme of the enterprise. The
company’s budget provides a list of all sources earnings and expenditure (Poister &
Streib, 2005). Previous experiences are used to make estimated budgets and it is
important to have a budget that caters for unforeseen circumstances which may arise.
The mission and goal of the company are achieved within the confines of the budget
given. The Budgets reports play a pivotal role of giving guidance to managers the
information necessary for decision making in offering better incentives to employees. In
addition, it enables managers to cut costs by negotiating terms with suppliers and
vendors thereby coming up with feasible terms which make it possible to achieve the
goals and mission of the company.
Account receivable aging reports is another type of report used in managerial cost
accounting and these reports are suitable for businesses that rely much on extending
credit. Managers can identify defaulters by breaking down a clients’ remaining balances
into specific periods. It also makes it possible for managers to identify if there are any
problems or issues with the collection process. The presence of defaulters may lead to
the tightening of credit policies. This measure or transformation is very critical to the
success of any business because cash flow is important and is pivotal to the success of
any business enterprise.

Another managerial report that managers use is Cost Managerial Accounting Reports. In
this report, managerial accounting computes the costs of articles that are
manufactured. It also takes into all raw material costs, overhead, labor, and any added
costs are taken into account and the sum of these costs are divided by amounts of
products produced. In other words a cost report will give a summary of all information
and this report gives managers the capacity to realize the cost prices of items versus
their selling price. These reports also enable profit margins to be estimated monitored
since we will be having a clear picture of all the costs that were incurred during the
production process or costs related to the procurement of the articles. Other costs
which are also incorporated in the managerial accounting reports are hourly labor costs,
inventory waste and overhead costs because these provide an exact understanding of
all expenses which are of importance in optimizing resources among all departments
(Needles & Crosson. 2002).

Performance reports are reports used to review the performance of a company as a

whole as well as the performance of individuals at the end of a given period. In large
organizations departmental performance reports are also generated and these reports
are essential in the strategic decision making process of the future of the organization
by managers. Committed individuals who are high performers are often rewarded and
those who underperform are dismissed or dealt with as required as a result of the
information obtained from the performance reports. The performance reports give a
deep insight into the performance of a company and they make it easy for managers to
identify where the problem because they give an accurate measure of its strategy
towards the mission of the organization.

There are other managerial accounting reports which are equally important to every
business enterprise such as project report, competitor analysis, order information and
other reports which are similar which are either generated internally or made by
professionals. It is important to be able to handle reporting requirements by providing
credible and authentic managerial reports of your organization because managers need
these reports for strategic decisions which are meant to help meet the goals and
mission of the organization.

In conclusion, control reports are crucial to every organization as they provide the the
managers with important information which is pivotal to the decision making process of
the company by management. There are a number of managerial acounting reports as
discussed. Performance reports are reports used to review the performance of a
company as a whole as well as the performance of individuals at the end of a given
period. Budget managerial accounting reports are reports that are generated for small
businesses or for a department-wise in a large organization. Another managerial report
that managers use is Cost Managerial Accounting Reports. In this report, managerial
accounting computes the costs of articles that are manufactured. It also takes into all
raw material costs, overhead, labor, and any added costs are taken into account and
the sum of these costs are divided by amounts of products produced
REFERENCES:

Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability
assessment, management accounting, control, and reporting. Journal of Cleaner
Production, 136, pp.237-248.

Poister, T.H. and Streib, G., 2005. Elements of strategic planning and management in
municipal government: Status after two decades. Public administration review, 65(1),
pp.45-56.

Needles, B.E. and Crosson, S.V., 2002. Managerial accounting. Houghton Mifflin

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Erdogan ,B and Bauer ,T.(2009)Organizational Behavior: New York publishing house

Marlowe ,J and Kioko, S (2007) Financial Strategy for Public Managers: Singapore

Atrill,P.,& McLaney, E.(2009). Maagement Acc for Decision

Makers(6thed.)Essex,Pearson Ed Ltd

Hansen, D.R & Mowen,M.M.(2006),Cost Management: Accounting & Control