Some business organisation are now adopting responsibility accounting in their management section , though adopting advance computer and internet facility they are setting each and every person's responsibility .
So you should know about responsibility accounting .
Responsibility accounting is system of control where responsibility is a signed of control on cost . The proper authority is given to person so that they are given to persons so that they are able to keep up their performance .
"In other words , the responsibility accounting is that type of management accounting that collects and reports both planed actual accounting informations in the terms of responsibility centers."
Types of responsibility center
1. Cost center
The cost center relates to that segment in which the managers are responsible for incurring the cost. But there have no responsibility of revenue. It is also known as expenses center.
2. Profit Center
When a responsibility center gets revenue from output then it is known as profit center. The difference between revenue earned and cost incurred will be the amount of profit .
3.Investment Center
An investment centre is an entry segment in which a manager can control not only revenue or cost but also investments . In this , the manager who is given the responsibility of investment center is under obligation for proper utilisation of assets .
Steps of responsibility accounting
1.The organisation should be divide
2.Making of Responsibility Center
3.Making of targets or set the targets in different centers
4.Count actual performance
5. Analysis of performance
5.Timely improved action.
MIS
All MBA students have to read one subject Management information system whose short name is MIS. So, we are trying to show management information system notes at this one web page. In this MIS notes, we explain the meaning of management information system, its practical example of my own business and also explain benefits of MIS. We will explain management and accounting reports in next tutorial which are also part of management information system.
M = Management = Practical Use of Power of Decision Making
I = Information = Useful Data
S = System = Technique of Use of Data for Business
Now, we are able to introduce management information system.
What is Management information System ?
Management information system is that system in which raw data is collected and analyze it. After making it useful, it is used for decision making of business.
I think you can not understand what am I saying. Let me explain with my own business example.
I am doing this blogging business for more than 2 years. Like any other business, I want to get highest return of my invested time, energy and talent. So, it can only be possible, if I will manage it proper way. So, not only teaching to you online, I am also manager of this business. For growing this business, I have to take many decision. These decisions can not be taken without analyzed data which I have collected from different sources. So, I make system to collect raw data and analyze it with my own way and take decision on this basis. For this system for my business will be my management information system which I have to develop as manager of this business. This guides me how to manage my business information for getting best reward from my own business. Now, many question may arise in your mind.
Ist Question : What are decision, I am interested to take?
Ans : 1 To advertise my business 2. To invest money in my business 2. To write which contents in Accounting Education
2nd Question : What raw date will I collect for this decision?
1. Traffic of my site of Accounting Education, 2. Last year profit from this business. 3. Advertising media, 4. Advertising cost,
3rd Question : What is the system which will I use for this?
Ans : I am not shaktiman and like shaktiman, I can not fly to everywhere to see who is opening my site and count the number. My management information system will be fully on the basis of Internet technology, softwares and fast networking. I added code in my site. With this, I can know who visit, when visit, from where visit, how much time spent, how much traffic I gained on specific keyword or content and many more things.
I read the websites of advertising companies and media and I can check the prices of advertising cost without going to each advertising company. I can track my day income, yesterday income, seven day income and income since I started business. Everything are just far a click. I have email accounts, I have google docs contact box and I watch my search engine from where I know what my reader(customers) want from me? and Under this information system. I compare each and everything and take decision for making new and new planning.
Samething, you can imagine for large scale company like wipro, reliance or nokia or google. All are doing samething like me. They collect not only accounting data but every data in their advance softwares and take decision when, what and how to pay or get money, how to acquire new company and take decision relating to big and big projects. Now, dear MBA scholars, all of you would understand, what am I saying about Management information system.
This is the age of 21st century and now, you can get every report of everything within second. Now manager's work is limited only to decision making, even analysis of data is also done by softwares. All these softwares are known as MIS software.
Today, management accountant should know MIS and should have knowledge to do it practically.
Benefit of MIS
Decision making is the difficult part of business. A single wrong decision may collapse your business. So, a good MIS will be helpful for taking best decision in business. So, it is needed that we should apply MIS in business.
1. Transaction Processing System (TPS):
TPS processes the transactions and produces reports. In business, it may be probable that 1000 transaction may be made. So, TPS automates this process. You see barcode scanner. With this, we can just scrutinize the code of product and sale entry without human intervention is recorded by computer system at any point of sale.
2. Decision Support System (DSS):
It is the system which is helpful for decision making. DSS is not just used in planning but with this we also analyze the information. Salary information system is MIS because it provides the information of different employees' salaries. But DSS provides advance information like in which scheme, the user gets more tax rebates. In DSS, there are different types of formulas which are useful for calculation of this.
3. Executive Support System (ESS):
ESS is used for specific requirement of manager at top level. For example, company needs advance information for knowing the personality of manager. At that time, ESS will be applied in organization.
4. Business Expert System (BES):
This system creates artificial intelligence of human being and suggests different decision for business.
So you should know about responsibility accounting .
Responsibility accounting is system of control where responsibility is a signed of control on cost . The proper authority is given to person so that they are given to persons so that they are able to keep up their performance .
"In other words , the responsibility accounting is that type of management accounting that collects and reports both planed actual accounting informations in the terms of responsibility centers."
Types of responsibility center
1. Cost center
The cost center relates to that segment in which the managers are responsible for incurring the cost. But there have no responsibility of revenue. It is also known as expenses center.
2. Profit Center
When a responsibility center gets revenue from output then it is known as profit center. The difference between revenue earned and cost incurred will be the amount of profit .
3.Investment Center
An investment centre is an entry segment in which a manager can control not only revenue or cost but also investments . In this , the manager who is given the responsibility of investment center is under obligation for proper utilisation of assets .
Steps of responsibility accounting
1.The organisation should be divide
2.Making of Responsibility Center
3.Making of targets or set the targets in different centers
4.Count actual performance
5. Analysis of performance
5.Timely improved action.
MIS
All MBA students have to read one subject Management information system whose short name is MIS. So, we are trying to show management information system notes at this one web page. In this MIS notes, we explain the meaning of management information system, its practical example of my own business and also explain benefits of MIS. We will explain management and accounting reports in next tutorial which are also part of management information system.
M = Management = Practical Use of Power of Decision Making
I = Information = Useful Data
S = System = Technique of Use of Data for Business
Now, we are able to introduce management information system.
What is Management information System ?
Management information system is that system in which raw data is collected and analyze it. After making it useful, it is used for decision making of business.
I think you can not understand what am I saying. Let me explain with my own business example.
I am doing this blogging business for more than 2 years. Like any other business, I want to get highest return of my invested time, energy and talent. So, it can only be possible, if I will manage it proper way. So, not only teaching to you online, I am also manager of this business. For growing this business, I have to take many decision. These decisions can not be taken without analyzed data which I have collected from different sources. So, I make system to collect raw data and analyze it with my own way and take decision on this basis. For this system for my business will be my management information system which I have to develop as manager of this business. This guides me how to manage my business information for getting best reward from my own business. Now, many question may arise in your mind.
Ist Question : What are decision, I am interested to take?
Ans : 1 To advertise my business 2. To invest money in my business 2. To write which contents in Accounting Education
2nd Question : What raw date will I collect for this decision?
1. Traffic of my site of Accounting Education, 2. Last year profit from this business. 3. Advertising media, 4. Advertising cost,
3rd Question : What is the system which will I use for this?
Ans : I am not shaktiman and like shaktiman, I can not fly to everywhere to see who is opening my site and count the number. My management information system will be fully on the basis of Internet technology, softwares and fast networking. I added code in my site. With this, I can know who visit, when visit, from where visit, how much time spent, how much traffic I gained on specific keyword or content and many more things.
I read the websites of advertising companies and media and I can check the prices of advertising cost without going to each advertising company. I can track my day income, yesterday income, seven day income and income since I started business. Everything are just far a click. I have email accounts, I have google docs contact box and I watch my search engine from where I know what my reader(customers) want from me? and Under this information system. I compare each and everything and take decision for making new and new planning.
Samething, you can imagine for large scale company like wipro, reliance or nokia or google. All are doing samething like me. They collect not only accounting data but every data in their advance softwares and take decision when, what and how to pay or get money, how to acquire new company and take decision relating to big and big projects. Now, dear MBA scholars, all of you would understand, what am I saying about Management information system.
This is the age of 21st century and now, you can get every report of everything within second. Now manager's work is limited only to decision making, even analysis of data is also done by softwares. All these softwares are known as MIS software.
Today, management accountant should know MIS and should have knowledge to do it practically.
Benefit of MIS
Decision making is the difficult part of business. A single wrong decision may collapse your business. So, a good MIS will be helpful for taking best decision in business. So, it is needed that we should apply MIS in business.
Main characteristics of management information system (MIS) are given below:
1. Integration
In MIS, whole system is integrated with each movement of business. It will be supportive to produce more positive information.
2. Central Database
It is also the characteristics of MIS that it has a central database. Only correct validation, anyone can access to information.
3. Software Based System
MIS is software base system which is used in management accounting. It needs continually updates. Moreover, software will process data automatically.
4. Flexibility
MIS is more flexible system than any other system of management. We can adjust input data and processing technique according to need of business and get information according to this. We can also divide MIS in sub systems for proper recording and process of data.
Structure of MIS shows total design of information flow for managerial decisions. It has three parts.
1st Part of Structure of MIS - Strategic Management Information System
It is top level top level of management where we require strategic MIS. At this level, manager has to make plan and policies. So, at this level, only that information is provided which are useful for making plan.
2nd Part of Structure of MIS - Simple Management Information System
At middle level of management, we require the information relating to increase the profit and decline the cost. So, MIS's best use is at middle level.
3rd Part of Structure of MIS - Operative Control through Information System
This is low level of management and at this level; we apply the structure of MIS for controlling operation.
Main parts of Typology of MIS are given below:1st Part of Structure of MIS - Strategic Management Information System
It is top level top level of management where we require strategic MIS. At this level, manager has to make plan and policies. So, at this level, only that information is provided which are useful for making plan.
2nd Part of Structure of MIS - Simple Management Information System
At middle level of management, we require the information relating to increase the profit and decline the cost. So, MIS's best use is at middle level.
3rd Part of Structure of MIS - Operative Control through Information System
This is low level of management and at this level; we apply the structure of MIS for controlling operation.
1. Transaction Processing System (TPS):
TPS processes the transactions and produces reports. In business, it may be probable that 1000 transaction may be made. So, TPS automates this process. You see barcode scanner. With this, we can just scrutinize the code of product and sale entry without human intervention is recorded by computer system at any point of sale.
2. Decision Support System (DSS):
It is the system which is helpful for decision making. DSS is not just used in planning but with this we also analyze the information. Salary information system is MIS because it provides the information of different employees' salaries. But DSS provides advance information like in which scheme, the user gets more tax rebates. In DSS, there are different types of formulas which are useful for calculation of this.
3. Executive Support System (ESS):
ESS is used for specific requirement of manager at top level. For example, company needs advance information for knowing the personality of manager. At that time, ESS will be applied in organization.
4. Business Expert System (BES):
This system creates artificial intelligence of human being and suggests different decision for business.
REPORT :
Please forgiveness me for not connecting with you (all subscribers) due to mis-happening. Today, I am refresh and has started my professional work. Last time, I am discussing theMIS topics of Management Accounting. One of MIS's important topics is Report. Today, we discuss about report in detail.
Q:- What is meant by a report?
Ans. In simple words, a report is that document which is used for communication of information. It includes investigated data. In this report, we also include the tables which show the facts relating to any event, problem, progress of work, position of commercial business. In other words, a report is presentation of accounting facts which came from management accounting analysis. Report is important because it may be base of improvement in actions.
Q:- What are the essentials of a good report?
Ans. Report is that vehicle which is used for communication the information to those people who are interested in that information. So, it is very necessary to make report in that way which fulfill the need of interested parties. Following are main essential elements of a good report
1. Simple
2. Good form
3. Purity of information
4. Comparative
Q:- What do you mean by enterprise reports?
Ans. This report is made for whole organisation. This report informs outsiders and communicates the progress of company. Income statement, balance sheet, income tax statement, employment report and report of chairperson are main examples of enterprise reports.
Q:- What are control reports?
Ans. Control reports show the variance of performance of responsibility centers and departmental managers. In these reports, we can see the actual and standard performance. These reports must be sent at proper time, so that corrective measures can be taken by authorities.
Q:- What is meant by a report?
Ans. In simple words, a report is that document which is used for communication of information. It includes investigated data. In this report, we also include the tables which show the facts relating to any event, problem, progress of work, position of commercial business. In other words, a report is presentation of accounting facts which came from management accounting analysis. Report is important because it may be base of improvement in actions.
Q:- What are the essentials of a good report?
Ans. Report is that vehicle which is used for communication the information to those people who are interested in that information. So, it is very necessary to make report in that way which fulfill the need of interested parties. Following are main essential elements of a good report
1. Simple
2. Good form
3. Purity of information
4. Comparative
Q:- What do you mean by enterprise reports?
Ans. This report is made for whole organisation. This report informs outsiders and communicates the progress of company. Income statement, balance sheet, income tax statement, employment report and report of chairperson are main examples of enterprise reports.
Q:- What are control reports?
Ans. Control reports show the variance of performance of responsibility centers and departmental managers. In these reports, we can see the actual and standard performance. These reports must be sent at proper time, so that corrective measures can be taken by authorities.
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