Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 44

Why is control of materials important from a managerial planning perspective?

Step 1 of 4

Management levels:

• Top level: The people who are higher authorities, who influence the total firm with their decisions, frame policies for future, and promote wellbeing in the firm. The skills possessed by these people are like: Leadership skills, change management skills, delegation of authority and responsibilities, executive coaching, empowerment etc.

• Middle level management: These people are the managerial level people who receive orders from the top management and pool resources to accomplish the tasks assigned by the authorities. These people do not take their own decisions most of the times, but they execute the orders of their superiors. The skills required by these people to accomplish the tasks are: team building skills, problem solving skills, talent management and development skills, performance management etc.

• Lower level mangers: These people are the real executors of the work assigned by the second level. These people will monitor by the second level managers, receives responsibilities and work from their managers, work on those, and complete the tasks. The skills required by these people are: technical skills to complete given tasks, emotional intelligence, coordinating with others in the team, and flexible in nature.