Advantages And Disadvantages Of Mis

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Introduction: 1.1 MIS Reporting The concept of the Management Information System has evolved over a period of time comprising different facets of the organizational function. MIS is a necessity of all the organizations. The basic purpose of MIS is to collect data from the organization and present it in the format of reports at regular intervals. MIS or Management Information System is a system used by most organizations worldwide for transforming data into useful information for better decision making. It helps management make better plans and carefully organize business operations. Management information system is used for generating reports including inventory status reports, financial statements, performance reports etc. These reports…show more content…
Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product. It assigns average costs to each unit, and is the opposite extreme of Job costing which attempts to measure individual costs of production of each unit. Process costing is usually a method of assigning costs to units of production in companies producing large quantities of homogeneous products. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture. CIMA defines process costing as "The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced during the period". Process costing is suitable for industries producing homogeneous products and where production is a continuous flow. A process can be referred to as the sub-unit of an organization specifically defined for cost collection…show more content…
Therefore, they cannot be identified and allocated directly to a particular unit of output. As such, they are to be allocated among the units of output or to the different cost centers. Allocation of overheads is the process of charging overhead costs to a particular department or cost center. It is the allotment or assignment of an overhead cost to a particular cost unit. Examples: Allocation of depreciation to a particular cost center, allocation of cost of power to particular facility. Apportionment: Distribution of an overhead cost to several departments or cost centers is known as apportionment of overheads. It is the process of charging or apportioning costs to a number of cost centers or cost units. If a given cost is common to two or more departments or cost centers, such cost should be apportioned or divided among these departments on an equitable basis. For example, the amount of factory rent should be apportioned to all the departments. Reapportionment of Service Centers Cost to the Production or the Cost centers
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