Unit V

Reporting to Management

Objectives of the study:

The objectives of this unit are to help one understand, in general

 The general format of report and Reporting

 Importance of Reporting in the Finance field.

Contents Design:

5.1. Introduction.

5.2. Objectives of Reporting.

5.3. Principles of Reporting.

5.4. Importance of Reporting.

5.5. Qualities of a good Report.

5.6. Types of Reports.

5.7. Forms of Report.

5.8. Reports submitted to various levels of Management.

5.9. Management reporting requirements.

5.10. General format of reports.

5.11. Summary.

5.12. References.
5.1. INTRODUCTION

5.1. The term 'reporting' conveys different meanings on different circumstances.

In a narrow sense it means: supplying facts and figures. On the other hand, when
a committee is appointed to study a problem, a report is taken to mean : review
of certain matter with its pros and cons and offering suggestions. In case of
dealing with routine matters, a report refers to supplying the information at
regular intervals in standardized forms. A report is a means of communication
which is in written form and is meant for use of management for the purpose of
planning decision-making and controlling.

Simply stated it is a communication of result by a subordinate to superior. It

serves as a feedback to the management. The contents of report, the details of
the data reported and the method of presentation depend upon the size and type
of the business enterprise, extent of power delegated to subordinates and the
existence of various levels of management for whom information is meant.

5.2. OBJECTIVES OF REPORTING;

Traditionally, reporting was aimed at showing compliance with the budget.

While this function is met in countries with a parliamentary tradition and
adequate audit capacity, in other countries, improving compliance remains the
priority challenge. Nevertheless, transparency and accountability call for wider
scope of reporting. A budget reporting system should provide a means of
assessing how well the government is doing. Ideally, therefore it should answer
following questions.

Budgetary integrity. Have resources been used in conformity with legal

authorizations and mandatory requirements? What is the status of resources

and expenditures (uncommitted balances and undisbursed commitments)?

2.Operating performance. How much do programs cost? How were they

financed? What was achieved? What are the liabilities arising from their

execution? How has the government managed its assets?

Stewardship. Did the governments financial condition improve or

deteriorate?

What provision has been made for the future?

Systems and control. Are there systems to ensure effective compliance,

proper management of assets and adequate performance?

Reports are an important instrument for planning and policy formulation. For
this purpose, they should provide information on ongoing programs and the
main objectives of government departments. Reports can also be used for public
relations and be a source of facts and figures. They give an organization the
opportunity to present a statement of its achievements, and to provide
information for a wide variety of purposes.

Reporting must take into account the needs of different groups of users
including:

(i) the Cabinet, core ministries, line ministries, agencies, and program
managers;

(ii) the legislature; and

(iii) outside the government, individual citizens, the media, corporations,

Universities, interest groups, investors, and creditors.

According to surveys carried out in several developed countries,2 all users need
comprehensive and timely information on the budget. The executive branch of
government needs periodic information about the status of budgetary resources
to ensure efficient budget implementation and to assess the comparative the
costs of different programs. Citizens and the legislature need information on
costs and performance of programs that affect them or concern their
constituency. Financial markets need cash based information, etc.

5.3. PRINCIPLES OF REPORTING

Reports prepared by the government for internal and external use are governed

by the following principles:

1. Completeness. The measures, in the aggregate, should cover all aspects of

the reporting entity's mission.

Legitimacy. Reports should be appropriate for the intended users and

consistent in form and content with accepted standards.
User friendliness. Reports should be understandable to reasonably informed
and interested users, and should permit information to be captured quickly and
communicated easily. They should include explanations and interpretations for
legislators and citizens who are not familiar with budgetary jargon and
methodological issues. Financial statements can be difficult for non accountants;
where possible, charts and illustrations should be used to improve readability.
Of course, reports should not exclude essential information merely because it is
difficult to understand or because some report users choose not to use it.
Reliability. The information presented in the reports should be verifiable and
free of bias and faithfully represent what it purports to represent. Reliability
does not imply precision or certainty. For certain items, a properly explained
estimate provides more meaningful information than no estimate at all (for
example, tax expenditures, contingencies, or superannuation liabilities).

Relevance. Information is provided in response to an explicitly recognized

need. The traditional function of year-end reports is to allow the legislature to
verify budget execution. The broader objectives of financial reporting require
that reports take into account the different needs of various users. A frequent
criticism of government financial reports is that they are at the same time
overloaded and useless.

6. Consistency. Consistency is required not only internally, but also over time,
that is, once an accounting or reporting method is adopted, it should be used for
all similar transactions unless there is good cause to change it. If methods or the
coverage of reports have changed or if the financial reporting entity has
changed, the effect of the change should be shown in the reports.

7.Timeliness. The passage of time usually diminishes the usefulness of

information. A timely estimate may then be more useful than precise
information that takes longer to produce. However, the value of timeliness
should not preclude compilation and data checking even after the preliminary
reports have been published.
8. Comparability. Financial reporting should help report users make relevant
comparisons among similar reporting units, such as comparisons of the costs of
specific functions or activities.

Usefulness. Agency reports, to be useful both inside and outside the agency,
reports should contribute to an understanding of the current and future activities
of the agency, its sources and uses of funds, and the diligence shown in the use
of funds.

5.4 IMPORTANCE

In cost accounting, there are three important divisions, viz., cost ascertainment,
cost presentation, and cost control. Cost presentation serves as a link between
cost ascertainment and cost control. The management of every organisation is
interested in maximisation of profit through minimisation of wastages, losses,
and ultimately cost. So management will have to be furnished with frequent
reports on all functional areas of business to achieve these objectives.

One of the important functions of cost accounting is to provide the required

information to all levels of management at the appropriate time. The various
aspects of reporting such as: nature of reports to be prepared, the details of
information to be included and mode of presentation, are all decided at the time
of installation of cost accounting system. In fact, cost ascertainment. and cost
control are designed in such a way that they suit the scheme of information to be
presented so that they serve all levels of management but not the other way
round.

Efficient reporting is critical to an enterprise for many reasons, including:

1.Performance Measurement. Reporting enables company performance to be
evaluated on many levels, including:

2.Enterprise Performance. Consolidated executive reporting enables

executives to determine the success of their corporate vision and resulting
initiatives.

3.Divisional Performance. Management reporting provides managers with a

team performance report that can be used to manage and evaluate the results
against forecasts.
4.Asset Performance. Detailed reporting provides individual personnel and
their managers with either an individual or asset performance report to manage
and evaluate the results against forecasts.

5.Capital Utilization Optimization. Reporting enables management to

compare and prioritize assets to optimize capital utilization.

6.Informed Decision Making. Reporting provides a basis for forecast

development, goal setting, result evaluation and management, and informed
decision-making. These decisions can range from corporate-wide initiatives and
divisional budgeting considerations to the hiring and firing of individual
personnel.

7. Through reporting, management can steer the enterprise towards optimal

profitability. In order for profitability to be optimal, it is critical that enterprise
reporting is informative, timely, accurate and available with simplified access to
the required detail. This allows management to take an active role to ensure
continuous fiscal improvement and cost efficacy.
5.5.QUALITIES OF A GOOD REPORT.

The draft of the report should be reviewed for an appropriate number of times so that the
errors are completely avoided. While reviewing the draft, certain guidelines are to be
followed, as indicated below:

1. The text of the report should be free from ambiguity.

2. The text should convey the intended message.

3. Because the readers are with different profiles, the style and presentation
of the text of the report should suit the profile of the targeted group of
readers; otherwise, the purpose of the report will be lost.

4. The content of the report should fully reveal the scope of the research in
logical sequence without omitting any item and at the same time it
should be crisp and clear.

5. The report should be organized in hierarchical form with chapters, main

sections, subsections within main sections, etc.,

6. There should be continuity between chapters and also between sections

as well subsections.

7. The abstract at the beginning should reveal the essence of the entire
report which gives the overview of the report.

8. The chapter on conclusions and suggestion is again enlarged version of

the abstract with more detailed elaboration on the inferences and
suggestions.

9. A reading of abstract and conclusion of a report should give the clear

picture of the report content to the readers.

10. Avoid using lengthy sentences unless warranted.

11. Each and every table as well as figure should be numbered and it must be
referred in the main text.

12. The presentation of the text should be lucid so that every reader is able to
understand and comprehend the report content without any difficulty.

13. The report should have appropriate length. The research report can be
from 300 to 400 pages, but the technical reports should be restricted to
50 to 75 pages.

A good report should satisfy the following requisites in order to enable the
receiver of report to understand and get interested in the report.

(a) Title: This contains the subject-matter of the report. It should be brief but
not vague. Where a lengthy report is to be prepared the subject-matter is to be
presented in various ,

paragraphs under different sub-titles.

(b) Period: It should mention the duration covered by the report.

(c) Units of measurement: In case of quantitative information is to be

reported the units in which quantities are expressed should be clear. For
example, production in tonnes. sales in lakh rupees, idle time in hours.

(d) Date: The date on which the report is presented is to be mentioned. This
helps receiver of the report to know what changes must have occurred during the
time lag of period covered under the report and date of presentation of report.

(e) Name: The report must contain the name of the person by whom a report is
prepared, the name of person to whom it is meant and the names of those for
whom copies are sent.
(f) Standard: The reports prepared must meet the standard expected by its
receiver. Use of highly technical words may not be readily understood by lower
level management.

(g) Use of diagrams: Wherever possible the reports must be illustrated by

diagrams and charts in addition to description of the report. This facilitates ready
understanding.

(h) Recommendations: Recommendations are to be offered to facilitate the

reader as to what course of action is to be taken to set right the defects.

(i) Promptness: The reports should be prepared periodically and submitted to

all levels of management promptly. It is said that report delayed is report denied.
If the time lag between the period of preparation and period of submission is
more it may give rise to wrong decisions.

(j) Accuracy: The information furnished in the report must be accurate. It is

important to avoid furnishing unnecessary details in the report.

(k) Comparison: A comparative study must be incorporated in the report so as

to facilitate the receiver of the report to know the progress and prospects of the
performance. Comparison can be based on past performance or predetermined
performance.

(I) Economy: The expenses incurred in maintaining reporting system must be

less than the benefits derived there from or loss sustained by not reporting.

(m) Simplicity: The report should be brief, clear and simple to understand.
The form of report should be designed to suit different levels of management.
Where it is inevitable to prepare a lengthy report, a brief synopsis should
precede the report.
(n) Controllability: Where variances are incorporated it is essential to stress
on controllable aspects and to drop out uncontrollable element. But this depends
upon the circumstance under which the report is prepared.

(o) Source of information: The source of information must be included in

the report.

5.6.TYPES OF REPORTS

Reports are classified into different types according to different bases. This is
shown in the following chart:

TYPES OF REPORT

On the basis of purpose On the basis of period of submission On the basis of

function

External Internal Routine Special Operating Financial

Report Report Report Report Report
Report

I. On the Basis of Purpose

On the basis of purpose, reports can be classified into two types, viz., (a)
External report, and (b) Internal report.
(a) External report: External report is prepared for meeting the requirements of
persons outside the business, such as shareholders, creditors, bankers,
government, stock exchange and so on. An example of external report is the
published accounts, viz., profit and loss account and balance sheet. External
report is brief in size as compared to internal report and they are prepared as per
the statutory requirements.

(b) Internal report: Internal report is meant for different levels of management.
This can again be classified into three types: (a) Report meant for top level
management, (b) Report meant for middle level management, and (c) Report
meant for lower level management. Report to top level management should be
in summary form giving an overall view of the performance of the business.
Whereas external reports are prepared annually, internal reports are prepared
frequently to serve the needs of management. Internal report need not conform
to any standard form as it is not statutorily required to be prepared.

II. On the Basis of Period of Submission

According to this basis. reports can be classified into two types, viz., (I) Routine
reports, and (2) Special reports.

(a) Routine reports: They are prepared periodically to cover normal activities
of the business. They are submitted to different levels of management according
to a time schedule fixed. While some reports are prepared and submitted at a
very short intervals, some are prepared and submitted at a long interval of time.
Some examples of routine reports relate to monthly profit and loss account,
monthly balance sheets, monthly production. purchases, sales, etc.

(b) Special reports: Special reports are prepared to cover specific or special
matters concerning the business. Most of the special reports are prepared after
investigation or survey. There is no standard form used for submitting this
report. Some of the matters which are covered by special reports are: causes for
production delays, labour disputes, effects of machine breakdown, problems
involved in capital expenditure, make or buy problems, purchase or hire of fixed
assets, price fixation problems, closing down or continuation of certain
departments, cost reduction schemes, etc.

III. On the Basis of Function

According to the purpose served by the reports, it can be classified into two
types, viz., -(a) operating report, and (b) financial report.

(a) Operating report: These reports are prepared to reveal the various
functional results. These reports can again be classified into three types, viz., (a)
Control reports, which are prepared to exercise control over various operation of
the business, (b) Information report, which are prepared for facilitating planning
and policy formulation in a business, (c) Venture measurement report which is
prepared to show the result of a specific venture undertaken as for example a
new product line introduced.

(b) Financial report: Such reports provide information about financial position
of the undertaking. These reports may be prepared annually to show the
financial position for the year as in the case of balance sheet or periodically to
show the cash position for a given period as in the case of fund flow analysis
and cash flow analysis.

The following list briefly defines several other types of reports.

1.Physical Description Report

Physical description reports describe the physical characteristics of a machine, a

device, or some other type of object. They also explain the relationship of one
part of the object to other parts so that the reader can visualize the object as a
unit. Physical description reports are many times combined with process,
analysis, or investigation reports.
2.Process Report

Process reports explain how products are produced, tests are completed, or
devices operate by describing the details of procedures used to perform a series
of operations. Process reports may be general or detailed. General process
reports are addressed to persons not directly involved in performing the process.
Detailed process reports are designed to give the readers all the necessary
information needed to complete the process.

3.Analytical Report

Analytical reports critically examine one or more items, activities, or options.

They are structured around an analysis of component parts or other common
basis for comparison between options. This type of report usually results in
conclusions and recommendations.

4.Examination Report

Examination reports are used to report or record data obtained from an

examination of an item or conditions. Examination reports differ from one
another in subject matter and length. Some are similar to analytical reports but
are less complicated because the information is obtained from personal
observations. Examination reports are logically organized records investigating
topics such as accidents or disasters. They are usually prepared for people
knowledgeable about the subject and not for the general reader.

5.Laboratory Report

Laboratory reports record and communicate the procedures and results of

laboratory activities. Equipment, procedures, findings, and conclusions are
clearly presented at a level appropriate for readers with some expertise in the
subject. They are sometimes presented in laboratory notebooks using neatly
handwritten text and charts.
6. Literature Review

Literature reviews are logically organized summaries of the literature on a given

subject. It is important that they are correctly documented and accurately
represent the scope and balance of the available literature. Conclusions drawn
reflect the collection as a whole and should appropriately reflect various points
of view. Overuse of direct quotations should be avoided.

7. Design Portfolio

Design portfolios are organized presentations of preliminary and final designs of

items such as mechanisms, products, and works of art. When part of an
educational activity, they may also include an analysis of the problem, review of
related designs, evaluation, and other information. The presentation may be in
the form of notes, sketches, and presentation illustrations.

8. Detail Report

Detail Report: Prints a text report outlining each audit question as well as the
scoring criteria and responses entered for each question. Compliance level is
calculated as a percentage at the end of the report.

9. Graphical Report (points): Compares your possible score (in compliance

points) to your actual score in a bar graph format. Then calculates your
compliance score as a percentage and sorted by audit section number.

10. Graphical Report (%): Compares your possible score (percentage) to your
actual score in a bar graph format.

11. Non-Compliance Report: Prints a listing of the audit questions on which

you failed to reach compliance. Includes the audit section number for each
question and the actual score vs. possible score.
12. Non-Compliance Graphical Report: Prints a bar graph report of those
audit questions on which you failed to reach compliance.

13. Summary Report

A report allowing users to summarize responses based on the selection from four
fields.

14. Trend Report

A report allowing users to view trends over a defined time frame.

Management Reporting

A research report can be classified into decision-oriented (technical) report and

research - oriented report. Further, the research-oriented report can be classified
into survey-based research report and algorithmic research report.

1 Decision-oriented (Technical) Report

The steps of preparing decision-oriented report are presented below:

i. Identification of the problem

ii. Establishment objectives

iii. Generation of decision alternatives

iv. Evaluation of decision alternatives

v. Selection of the best decision alternative

vi. Development of action plan

vii. Provision for correction plan after implementation of the decision.

2. Survey-based Research Report

The main body of the report for the survey-based research contains the
following:

i. Problem definition

n. Objectives of the research

ill. Research methodology

iv. Data analysis

v. Interpretation of results and suggestion

vi. Conclusions.

3. Algorithmic Research Report

There are problems, viz., production scheduling, JIT, supply chain management,
line balancing, layout design, portfolio management, etc., exist in reality. The
solution for each of the above problems can be obtained through algorithms. So,
the researchers should come out with newer algorithms or improved algorithms
for such problems. For a combinatorial problem, the researcher should attempt
to develop an efficient heuristic. The algorithmic research report can be
classified into the following categories:

1. .Algorithmic research report for combinatorial problem

2. .Exact algorithmic research report for polynomial problem.

Algorithmic research report with modeling for combinatorial problem

The main body of this type of research report will contain the following:

i. Problem identification

ii. Literature review

iii. Objectives of the research

iv. Development of mathematical model

v. Design of algorithm (heuristic)

vi. Experimentation and comparison of the algorithm with the model in terms
of solution accuracy

vii. Experimentation and comparison of the algorithm with the best existing
algorithm (heuristic) in terms of solution accuracy

viii. Case study

ix. Conclusions.

In this type of research, the results of the algorithm will be compared with the
optimal results of the mathematical model as well as with the results of the best
existing algorithm to check its solution accuracy through a carefully designed
experiment

Note: In a research related to combinatorial problems in new and complex area,

development of a mathematical model to obtain the optimal solution may not be
easy. Under such situation, the results of the algorithm (heuristic) should be
compared with that of the best w existing heuristic alone for checking its
solution accuracy through a carefully designed experiment

Exact algorithmic research report for polynomial problem

The main body of this type of research report will contain the following:

i. Problem identification

ii. Literature review

iii. Objectives of the research

iv. Design of exact algorithm

v. Experimentation arid comparison of the exact algorithm with the best

existing exact algorithm in terms of computational time

vi. Case study

vii. Conclusions.

In a research related to polynomial problem, the researcher will have to develop

an efficient exact algorithm in terms of computational time and compare it with
the best existing exact algorithm for that problem through a carefully designed
experiment. The comparison in terms of solution accuracy does not apply here
because all exact algorithms will give optimal solution.

5.7 FORMS OF REPORT

Reporting of information management takes different forms. They are explained

below:

1. Oral Report

An oral report is not very popular as it does not serve any evidence and cannot
be referred to in future. Oral report may take the form of a meeting with
individuals or a conference.

2. Descriptive Reports

These are written in narrative style. They are frequently supported by tables and
charts to illustrate certain points covered in the report. One important point that
must be considered in drafting this form of report is the language. The language
used must be simple, easy to understand and lucid. Where the report is very
long, it must be suitably divided into paragraphs with headings. They must cover
all the principles of .good report discussed earlier.
3. Comparative Statement

This form of report is used for preparing the routine report. Under this method
the particulars of information are shown in a comparative form, i.e., the actual
results an compared with planned results and the deviations between the two arc
indicated. The various tools used to prepare this form of report arc comparative
financial statements, ratio analysis, fund flow analysis and so on.

4. Diagrammatic and Graphic representation

This is more popular form of preparing reports. They occupy lesser space and
gives at a glance the whole picture about a particular aspect of study. They also
facilitate in comparative study and shows the trend over a period of time. This
form of report can b used where a report contains presentation of statistical
numbers and other facts and figures It overcomes the language barrier and is
very easily understood by everyone. Of course when large numbers are
involved, it is to be reduced by selecting a convenient scale Diagrammatic
representation involves the following forms:

(a) Bar diagram: They make use of horizontal and vertical axes to show the
magnitude of values, quantity and period. Bar diagrams are of the following
types.

(i) Simple bar diagram: These are most popularly used in preparing reports.
The consider only length but not the width to indicate the change. In formation
relating to volume of production, cost of production sales, etc. for different years
can be shown under this form.

(ii) Multiple bar diagram: This type of diagram is used to report related
matters such as production and sales, sales and profit, advertisement and sales
and so on.
(iii) Sub-divided bar diagram: This form of diagram is used to report matters
which involved different component parts as for example, the cmponents of
total cost of production such as prime cost, factory cost, office cost, cost ,of
sales.

(iv) Percentage bar diagrams: These diagrams depict the information on a

percentage basis.

(b) Pre-diagram: They take the form of circles instead of bars. They facilitate
comparison besides depicting the actual information under review.

5. Break-even Chart

This type of chart is prepared to show the relationship between variable and
fixed cost and sales. It shows the point of no-profit and no-loss or where total
cost equals total revenue received.

6. Gantt Chart

This chart was first introduced by Heny L. Gantn. It is a special type of bar
diagram under which bars are drawn horizontally. This chart shows the bars of
planned schedule and attained performance. They are largely used to denote
utilisation of machine capacity.

5.8.REPORTS SUBMITTED TO VARIOUS LEVELS O¥

MANAGEMENT

1. Top Level Management

The top level management comprises of board of directors, managing director,

and other executives who are concerned with determination of objectives and
formulation of policies. Top management is to be furnished with reports at
regular intervals in order to enable them to exercise control over the activities of
the business. The following are some of the matters to be reported to board of
directors.

a) Master budget which covers all functional budgets for taking remedial actions
where there are significant deviations from budgeted figures.

b) Various functional budgets prepared by various departmental managers for

holding departmental managers for any shortfall in their performance.

c) Capital expenditure budget and cash budget to know the extent of variances
for taking remedial measures.

d) Reports relating to production and sales, which shows the trend of the
performance of business.

e) Report covering important ratios such as stock turnover ratio, fixed assets
turnover ratio, liquidity ratio, solvency ratio, profitability ratios, etc. to know the
improvement in business.

f) Appraisal of various projects undertaken by the organisation.

2. Middle Level Management

It comprises of different departmental managers such as production manager,

purchase manager, sales manager, chief accountant, etc. These managers require
reports to improve the efficiency of their respective departments. The following
are some of the matters reported to production manager:

(a) Report relating to actual capacity utilised as compared to budgeted capacity.

(b) Report relating to actual output as against standard output.

(c) Labour and machine capacity utilised.

(d) Idel time lost.

(e) Report on scraps, wastages and losses in production.

(/) Report relating to stock of raw materials, work-in-progress and finished
goods.

(g) Report relating to cost of production, operation of different departments.

The following are some of the matters reported to sales manager:

(a) Report relating to number of orders executed, orders received and orders on
hand.

(b) Reports relating to actual sales and budgeted sales and actual selling and
distribution expenses and budgeted selling and distribution expenses.

(c) Summary of selling expenses incurred in different territories and their

corresponding sales.

(d) Gross profit earned on different products and in different areas.

(e) Market survey reports.

(/) Report relating to present and potential demand.

The following are some of the matters reported to financial manager:

(a) Report relating to cash position.

(b) Summary of receipts and payments.

(c) Report relating to outstanding debts on credit sales.

(d) Report on debts due on credit purchases.

(e) Monthly profit and loss account.

(/) Quarterly report on capital expenditure.

3. Lower Level Management

The lower level management include supervisors, foremen and inspectors who
are concerned with the operations of the factory. They are interested in
increasing the efficiency of the production departments. The reports that are to
be sent to them are variances relating to planned and actual performance. The
report must also emphasise cost control aspects.

5.9.MANAGEMENT REPORTING REQUIREMENTS

(a) General.

This document prescribes management reports required if the offer requests

progress payments and a progress payments clause is included in the
subcontract. They are in addition to technical reports required under the
subcontract, but must be consistent with data furnished under those
requirements. Preferred formats for the Billing Plan/Management Report and the
Milestone Schedule and Status Report are attached.

(b) Description of Reports.

(1) BILLING PLAN/MANAGEMENT REPORT, FORM

This report shows the planned rate of progress payment billings and billings for
accepted supplies under each major task for the remainder of the subcontract
performance period. For each task, the planned billings are to be projected in
monthly increments for each of the twelve months of the current or succeeding
fiscal year, and in fiscal year increments thereafter for the remainder of the
subcontract. (Projected billings should be directly related to the activities
scheduled to be performed during each billing period, as reflected on the
Milestone Schedule and Status Report.) or schedule. Each time it is necessary to
alter the plan, a new plan and narrative explanation for the change will be
provided to the Company.
(B) As a monthly report, this document provides a comparison of the planned
billings with the actual billings for work performed as of the cut-off period for
the report. Variances from the plan are computed, and explanations for variances
exceeding + 10% will be provided by the Seller in the Narrative Highlights
Report. In addition, upon the occurrence of a variance exceeding + 10%, the
Seller must reevaluate the estimated billings for the balance of the current fiscal
year and to the completion of the subcontract. Narrative explanations must be
provided for significant changes to these estimated billings.

(2) MILESTONE SCHEDULE AND STATUS REPORT

This is used as both a baseline plan and status report.

As a baseline plan, it establishes the Seller's schedule for accomplishing the

planned events and milestones of each reporting category identified in the
subcontract.

As a status report, it measures status or progress against the baseline plan. It will
reflect planned and accomplished events, milestones, slippages, and changes in
schedule.

(3) NARRATIVE HIGHLIGHTS REPORT .

The Narrative Highlights Report permits management presentation of the

technical aspects of subcontract performance along with an overview of
significant project highlights, accomplishments, and problems. The report will
continue discussions of items identified in the previous report through
completion of an activity or resolution of a problem. Typical reporting elements
to be covered by brief statements are:

(A) Major accomplishments and significant highlights.

(B) Major subcontract awards, including award date, subcontract amount, and
scheduled completion date.

(C) Developments affecting estimates and schedules. This will specifically

include explanations of deviations from the Billing Plan which exceed + 10%
and deviations from Milestone Schedule Plan which exceed 30 days.

(D) Revised estimates or schedules.

(E) Technical problems encountered and resolution actions proposed.

(F) Planned major accomplishments during the next 60 days.

5.10.General Format of a Report:

The mechanical format of a report consists of three parts: the preliminaries, the
text, and the reference materials. The length of any of these three parts is
conditional on the extent of the study.

1. The Preliminaries

(a) Title page

(b) Preface, including acknowledgments (if desired or necessary)

(c) Table of contents

(d) List of tables

(e) List of Figures or illustrations

2. The Text

(a) Introduction (introductory chapter or chapters)

(b) Main body of the report (usually divided into chapters! and sections)

(c) Conclusion
3. The Reference Material

(a) Bibliography The order of these may be

(b) Appendix (or Appendixes) reversed.

(c) Index (if any)

THE PRELIMINARIES

1. TITLE PAGE

Most universities and colleges prescribe their own form of title page for theses,
dissertations and research papers and these should be complied with in all
matters of content and spacing. Generally, the following information is required:

Written Report

(a) Title of the report

(b) Name/s of the writer/s

2. PREFACE

The preface (often used synonymously with foreword) may included: the
writer's purpose in conducting the study, a brief resume of the background,
scope, purpose, general nature of the research upon which the report is being
based and acknowledgments.

3. TABLE OF CONTENTS

The table of contents includes the major divisions of the report: the introduction,
the chapters with their subsections, and the bibliography and appendix. Page
numbers for each of these. divisions are given. Care should be exercised that
titles of chapters and captions of subdivisions within chapters correspond
exactly with those included in the body of the report. In some cases, sub-
headings within chapters are not included in the table of contents. It is optional
whether the title page, acknowledgments, list of tables and list of Figures are
entered in the table of contents. The purpose of a table of contents is to provide
an analytical overview of the material included in the study or report together
with the sequence of presentation. To this end, the relationship between major
divisions and minor subdivisions needs to be shown by an appropriate use of
capitalisation and indentation or by the use of a numeric system.

A table of contents is necessary only in those papers where the text has been
divided into chapters or several subheadings. Most short written assignments do
not require a table of contents. The basic criterion for the inclusion of
subheadings under major chapter division is whether the procedure facilitates
the reading of a report and especially the location of specific sections within a
report.

4. LIST OF TABLES

After the table of contents, the writer needs to prepare a list of tables. The
heading LIST OF TABLES, should be centered on a separate page by itself.

5. LIST OF FIGURES (OR ILLUSTRATIONS)

The list of Figures appears in the same form as the list of tables. The page is
headed LIST OF FIGURES, without terminal punctuation, and the numbers of
the Figures are listed at the left of the page under the heading Figure.

6. INTRODUCTION

An introduction should be written with considerable care: with two major aims
in view: introducing the problem in a suitable context, and arousing and
stimulating the reader's interest. If introductions are dull, aimless, confused,
rambling, and lacking in precision, direction and specificity; there is little
incentive for the reader to continue reading. The reader begins to expect an
overall dullness and aimlessness in the whole paper. The length of an
introduction varies according to the nature of the research project.

7. MAIN BODY OF THE REPORT

There are certain general principles which should be followed:

(a) Organise the presentation of the argument or findings in a logical and orderly
way, developing the aims stated or implied in the introduction.

(b) Substantiate arguments or findings.

(c) Be accurate in documentation.

8.CONCLUSION

The conclusion serves 'the important function of tying together the whole thesis
or assignment. In summary form, the developments of the previous chapters
should be succinctly restated, important findings discussed and conclusions
drawn from the whole study. In addition, the writer may list unanswered
questions that have occurred in the course of the study and which require further
research beyond the limits of the project being reported. The conclusion should
leave the reader with the impression of completeness and of positive gain.

9. BIBLIOGRAPHY

The bibliography follows the main body of the text and is a separate but integral
part of a thesis, preceded by a division sheet or introduced by a centered
capitalized heading BIBLOGRAPHY. Pagination is continuous and follows the
page numbers in the text. In a written assignment, the word bibliography may
be a little pretentious and the heading REFERENCES may be an adequate
alternative.
10. APPENDIX

It is usual to include in an appendix such matters as original data, tables that

present supporting evidence, tests that have been constructed by the research
student, parts of documents or any supportive evidence that would detract from
the major line of argument and would make the body of the text unduly large
and poorly structured. Each appendix should be clearly separated from the next
and listed in the table of contents.

11. INDEX

If an index is included, it follows the bibliography and the appendix. An index is

not required for a written assignment or for an unpublished thesis. If a thesis is
subsequently published as a book, monograph or bulletin, an index is necessary
for any or of complexity.

12. THE ABSTRACT

An abstract consists of the following parts:

1. A short statement of the problem.

2. A brief description of the methods and procedures used in collecting the
data.
3. A condensed summary of the findings of the study.

The length of the abstract may be specified, for example, 200 words. Usually an
abstract is short.

13.THE FINAL PRODUCT

From the outset, the aim is, at the production of a piece of work of high quality.
The text should be free of errors and untidy corrections. Paper of standard size
(usually quarto) and good quality should be used.
5.11.SELF ASSESMENT QUESTIONS

1. What are the different types of report? Explain them in brief.

2. Discuss the guidelines for reviewing the draft of a report.

3. What are the qualities of a research report? Explain them in brief.

4. Give a sample cover page of a research report.

5. Discuss the items of the introductory pages in detail.

6. Give a sample table of-contents of a survey based research report.

7. Give a sample table of contents of an algorithmic research report.

8. What are the items under the text of a research report? Explain them in brief.

9. Discuss the guidelines for preparing bibliography.

10. Give a brief account of typing/printing instructions while preparing a

research report.

11. Discuss the guidelines for oral presentation of a research report.

12. Assume a research topic of your choice and give the complete format of its

research report.

13. What do you understand by the term “reporting to management” ?.

Discuss briefly the matters that you would deal with while reporting to the board
of directors.

14. Discuss the general principles to be observed while preparing reports.

15. Describe the various forms of reporting to management.

16. Distinguish between routine and special reports. State the various matters
which are sent to management under routine and special reports.
17. Explain different types of reports submitted to the management of an
organisation.

18. Explain the information submitted to different levels of management.

5.12. REFERENCES:

1. Anthony, Robert: Management Accounting, Tarapore-wala, Mumbai.

2. Barfield, Jessie, Celly A. Raiborn and Michael R. Kenney: Cost Accouting;

Traditions and Innovations, South - Western College Publishing, Cincinnati,
Ohio.

3. N. Vinayakam and I.B. Sinha, Management Accounting – Tools and

Techniques, Himalaya Publishing House, Mumbai.

4. Decoster, Don T. and Elden L. Schater: Management Accounting: A Decision

Emphasis, John Wiley and Sons Inc., New York.

5. Garrison, Ray H. and Eric W. Noreen: Management Accounting, Richard D.

Irwin, Chicago.

6. Hansen, Don R. and Maryanne M. Moreen: Management Accounting, South-

western College Publishing, Cincinnati, Ohio.