a)Management Reporting Systems characteristics: -
i. Provide the feedback path in the target/budget versus actual results systems
enabling management control on appropriate organizational key issues.
ii. May cover long medium or short time periods depending on the level of
management using the reports.
iii. Are oriented towards the past or present time.
iv. They summarize or classify key data and present the information in standard
formats either on screen or paper printouts.
v. Sources of data must be consistent over time to ensure like is compared with like.
vi. Are stable over a significant time period.
b)The report required in this example would be an Exception report. Due to the high
number of stock items, it would be an impossible task for any manager or clerk involved
in re-ordering individual stock items to keep track of the situation. For each item that is
required to be carefully controlled, so that it does not run out of stock, would be the
establishment of minimum and maximum stock levels together with a reorder level. Often
a further set of warning levels for minimum and maximum levels would be set. Delivery
times must also be factored into the reorder level. The exception reporting system would
only report on a given item of stock if any of these levels were crossed. If the stock item
was ‘in control‘, that is between the set levels, no report would be made. With exception
reporting, only items that are going, or are outside the various levels set for that item
would be reported. This means that action is required in some form for any item that
appears on the exception report.
gregorymasila answered the question on February 15, 2018 at 17:05
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Date posted: February 15, 2018. Answers (1)
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Date posted: February 15, 2018. Answers (1)