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 MaterialsDirect LaborFactory Overhead

Job Cost Sheets Finished Goods

Work in Process Account

Process Cost System

Work in ProcessDept. 1

Work in ProcessDept. 2 Finished Goods

FactoryOverhead

DirectLabor

Direct Materials

Direct Materials

DirectLabor

FactoryOverhead