Management Accounting Information

1. Management Accounting Information Merlin Entertainments Plc help@hndassignments.co.uk

2. Table of contents • Introduction • Management Accounting • Types of management accounting information • Management accounting as a tool of decision making • Comparison with trend • Forecasting • New product and service • Investment decision • Conclusion • References help@hndassignments.co.uk

3. Introduction Travel and tourism sector is the fastest growing industry in the service sector throughout the world. With the ease of transportation, the growth rate of travel and tourism business is increasing rapidly. With this the scope of finance and funding requirements and their application is also increasing. The sources of funds, investment in capital projects etc. are the crucial decisions for any travel and tourism business. The application of these methods and analysis and interpretation of financial statements and accounting information is included in this report. help@hndassignments.co.uk

4. Management Accounting Management accounting provides the manager with the accounting information in order to make better decision within the organization and helps them in building control. It involves preparing reports and accounts that provide accurate and timely financial and statistical information to business owner in decision making. The manager uses accounting information to build policies for the company. help@hndassignments.co.uk

5. Types of management accounting information • Budget repot • Financial statement • Variance analyze • Job cost report help@hndassignments.co.uk

7. Contd. • Budget Report - The budget is a tool used by the management to control the cost of the production. Budget provides with a roadmap and the set of activity required to attain organization goals. The manager can use it as a tool to compare the performance of the activity with the budget to study the variance and take corrective action. • Financial Statements - The manager of Merlin enterprise can use to financial statement for the purpose of making informed decision for the company on the basis of accounting information. The manager will use the financial statement to perform financial analyze for the purpose of decision making. The manager of Merlin entertainment company can make the decision on the area where future investment can be made on the basis of analyzing of financial information. help@hndassignments.co.uk

8. Contd. • Variance Analysis - The management of Merlin Entertainment can use the variance analyze to compute the variation of actual outcome from the targeted outcome. The manager should examine the reason of variance and take appropriate measures to control. The management should consider these variance while preparing future budget. • Job cost report - The manager of Merlin Entertainment can use the job cost report to show the expenses and check the profitability of all the project. With the help of job cost report the manager can find unit which is making higher profit and the unit which are incurring loss. help@hndassignments.co.uk

9. Management accounting as a tool for decision making • Comparison with the trend • Forecasting sales • New product and service • Investment decision help@hndassignments.co.uk

10. Comparison with the Trend The management of Merlin entertainment can analyze the trend by comparing the performance of various year and make the future decision and plan on the basis of those trends. help@hndassignments.co.uk

11. Forecasting The manager of Merlin Entertainment company can determine the future demand of the product on the basis of analyzing the past data. The forecasting should be done which helps in attaining company vision and objective. help@hndassignments.co.uk

12. New product and service • The Manager of Merlin Entertainment company can use the accounting information and can take a informed decision on bringing new product. • The management should study the current structure of the business and based on it should introduce new product or service. help@hndassignments.co.uk

13. Investment decision The Merlin Entertainment company can decide the area where investment should be made for the future expansion of business. Through the use of accounting information the manager can make the estimation of costand return from the new investment. help@hndassignments.co.uk

15. Conclusion It can be concluded that accounting information helps The manager in making the informed decision related to the business. The management can use the information to create future business policies and goals for the company. It also helps in building coordination between the different activity of the organization. help@hndassignments.co.uk

16. References • Wu, C.H., Ho, G.T.S., Lam, C.H.Y., Ip, W.H., Choy, K.L. & Tse, Y.K. 2016, "An online niche-market tour identification system for the travel and tourism industry", Internet Research, vol. 26, no. 1, pp. 167-185. • Chang, K. 2015, "How travel agency reputation creates recommendation behavior", Industrial Management & Data Systems, vol. 115, no. 2, pp. 332-352. • Lozano, J., Arbulú, I. & Rey-Maquieira, J. 2016, "The Greening Role of Tour Operators", Environmental Management, vol. 57, no. 1, pp. 49-61. help@hndassignments.co.uk

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