Information is the basis for decision making in an organisation. The efficiency of management depends, to a larger extent, upon the availability of regular and relevant information to those exercise the managerial functions. No planning and control procedure is complete without prompt and accurate feedback of operation results and availability of other information. For example, management must know how the actual profit performance collates with that of budgeted or standard or with past performances and to what extent the variation have been caused by various influencing factors. A regular system of reporting is considered as a better guarantee of efficiency and operation than reliance on personal qualities. Hence, it is essential that an effective and efficient reporting system is developed as part of accounting methods.
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