CHP…..3
Concept of management and function of
controller.
What is different level of
management.
There are three level of management, these are
(1) Top management.
Top management consisting of president, and
the vice president, the top level management
can not study the detail information they can
taken decision about the summary of work
related. Most of the time they are busy in
meeting as well as phone calls.
(2) Middle management.
Middle management group represented by
department head as well as branch manager
head, department head such as marketing head
,finance head ,production head and so on. the
work of middle management is of follow the
instruction of the top management.
(3) Operation management
• The third level of management is the
operation management it include clerk and
supervisors sales man of the company. These
operation management follow instruction to
the middle management.
Concept of management.
Any raw form of work activities which is organize
in a systematic way is called management.
Management is necessary for the purpose of
making decision, giving order, establishing
policies, providing work and reword it all thing
will be possible when proper management
can be conduct it.
Con……
Function of management. there are some function
of management these are,
(1) planning, planning is the fundamental of
management process. planning can be establish
to proper run the business activities and to
achieve external opportunity and face external
threats for the purpose of achieving our object.
Any businessman prepare two types of planning
in one time one is running planning of the
business and second is contingency planning of
the business.
(2) organizing
The second important function of management
is to organize the work activities. In simple
divided the overall work into different sub
point is called organize such as the best
example of organizing is the functional area of
the business.
(3) Staffing.. The third function of management
is the staffing to hire skillful person is the right
time and right place and also to motivate it
(4) Leading
The forth major function of management is the
leading it means to monitor the work activities. a
leader is necessary which provide information to
worker and take information to different worker
and solve its problem.
(5) Controlling. the last important function of
management is to control the work activities
simple .current work can be compare to the
standard if any deficit ,next time business need to
control it.
Nature of cost accounting
Cost accounting sometime called management
accounting. in the planning phase cost
accounting deal with the future it help
management to prepare budget in future,
such as budget to material ,wages, and
indirect expense. In controlling phase
management compare the actual result into
standard .if actual is match in standard it will
be effective planning strategy.
Scope of cost accounting
Cost accounting is generally considered
applicable only to manufacturing operation.
This opinion is not valid in today economy.
Every type and kind of activity in which
monetary value is involve should consider the
use of cost accounting concept and
techniques. Manufacturing and non
manufacturing,school,hospital,airline and so
on all types of business used cost accounting
concepts.
Cost Accounting Systems
• Job Order Cost System
– Output consists of according to special order of
the customer-made.
– Provides a separate record for the cost of each
quantity of these special or custom-made
products.
• Process Cost System
– Accumulates costs for each department or process
in the factory.
Job Order Cost System
Direct Materials
Direct Labor
Factory Overhead
Job Cost Sheets
Work in Process
Account
Finished Goods
Process Cost System
Work in Process
Dept. 2
Work in Process
Dept. 1
Direct
Materials
Direct
Labor
Factory
Overhead
Direct
Materials
Finished Goods
Direct
Labor
Factory
Overhead