Management Information System (MIS)

A cost management system is part of an overall management information and control system. Based on that case, the types of information is necessary for an organization or individuals in order to perform their managerial functions. In here, there is a term Management Information System. A management information system (MIS) is a structure of interrelated elements that collects, organizes, and communicates data to managers so they may plan, control, make decisions, and evaluate performance. A MIS emphasizes satisfying internal demands for information rather than external demands. In most modern organizations, the MIS is computerized for ease of access to information, reliability of input and processing, and ability to simulate outcomes of alternative situations.

The accounting personnel are charged with the task of providing information to interested external parties such as creditors, the government (for mandatory reporting to the Internal Revenue Service, Securities and Exchange Commission, and other regulatory bodies), and suppliers, in regard to payments and purchases. External intelligence is also gathered from these parties as well as from competitors. Managers use internally and externally generated information to govern their organizations.

However, even given the same information, different managers may interpret it differently and respond accordingly. In this respect, a management control system is not merely mechanical, it requires judgment. Thus, a management control system may be referred to as a black box: an operation whose exact nature cannot be observed. Regardless of the specific actions taken, a management control system should serve to guide organizations in designing and implementing strategies such that organizational goals and objectives are achieved.

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