2 to ensure the operational efficiency of the concern

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2. To ensure the operational efficiency of the concern.
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354 3. To facilitate the maximum utilization of resources. 4. To secure industrial understanding among people who are engaged in various aspects of work of enterprise. 5. To enable to motivating improving discipline and morale. 6. To help the management for effective decision making. 24.3.3 ESSENTIALS OF GOOD REPORTING SYSTEM The following are the essentials of a good management reporting system : 1. Proper Form: A good report should have a comprehensive form with suggestive title, heading, sub heading and number of paragraphs as and where necessary for easy and quick reference. 2. Contents: Simplicity is one of the requisites of reporting in relation to the contents of a report. Further the contents should follow a logical sequence. Wherever necessary the contents should be represented in the form of visual aids such as charts and diagrams etc. 3. Promptness: It means that the system should ensure the preparation and submission of report at the proper time. It facilitates business executives to make suitable decisions based on quick reports without delay. 4. Accuracy: Information conveyed should be accurate. This means that the person responsible for reporting should have sufficient care in preparing the report as correctly as possible within the parameters of possible accuracy in this regard. 5. Comparability: In order to ensure that the furnished information is useful, it is essential that reports are also meant for comparison. The report should provide information about both the actual and the budgeted performance of the budget period. So that meaningful comparison can be made to find out the deviations and to initiate appropriate action. 6. Consistency: In order to make a meaningful and useful comparison, uniform accounting principles and procedures should be followed on consistent basis over a period of time for collection, classification and presentation of accounting information. 7. Relevancy: The report should be presented with relevant data to disclose the fact in unambiguous terms. Because, inclusion of both the relevant and the irrelevant data in the management reports may result in faulty decisions. Therefore, the contents expressed therein should reveal the reporter's greater consciousness of expression with reference to length and time in particular. 8. Simplicity: The report should be as far as possible in simple form. In other words, the report should avoid technical jargons, duplication of work and presented in a simple style. 9. Flexibility: The system should be capable of being adjusted according to the requirement of the users.
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355 10. Cost-Benefit Analysis : Cost-Benefit Analysis should be made and the cost of reporting should commensurate with the expenditure involved.
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