logo

Finance and Funding in Travel and Tourism Sector Assignment

   

Added on  2020-01-28

12 Pages3952 Words148 Views
Finance and Funding inTravel and Tourism Sector

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Concept of CVP analysis and importance of financial management....................................11.2 Analyse pricing methods which helps in determining the price for different trips...............21.3 Factors which influence the profit of firm............................................................................3TASK 2............................................................................................................................................42.1 Different type of management accounting information........................................................42.2 Analyse the use of investment appraisal technique...............................................................5TASK 3............................................................................................................................................63.1 Interpretation of financial accounts of Thomas Cook...........................................................6TASK 4............................................................................................................................................74.1 Analyse the sources and distribution of funding for the development of capital projects....7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONIn each and every sector, finance along with the funding is necessary to accomplish thesuccess in the market. For providing the better services to the consumers, employees requirefunds so that they can attain the aims.. Finance is a field which can help the firms in doing theinvestment in the market. In travel and tourism sector, when tourist having funds with them thenonly they can visit the different places and reap the best experience (Buckle Your Seatbelts:Funding to Travel Tech Startups Skyrockets In 2015, 2017). The present report is based onCarrib Happy Tours Company which is planning for the summer holiday trip. In the belowmentioned assignment, discussion based on the concept of cost and volume profit analysis.Moreover, importance of financial management is to be discussed. TASK 11.1 Concept of CVP analysis and importance of financial managementCVP stands for cost and volume profit evaluation is a instrument of cost accountingwhich is concerned and also having an impact on the level of sales of the firm along with the costof merchandise which should be vary according to the production of units and that will provide

the operating profit. This analysis is only reliable when cost of the product is fixed in all thelevels of production. It is a tool and technique of accounts which is concerned with the influenceof sales volume along with the cost of product on the operating profit of Carrib Happy ToursCompany (Evans, Stonehouse and Campbell, 2012). It deals with the revenue of the firm whichhaving an affect on the variation in the variable, fixed cost along with the sales price per unit ofthe merchandise. This analysis having distinctive assumptions which includes: All cost of the products can vary whether it is fixed or variable cost. Sometime sales price of the product, variable cost of inventory as well as fixed cost of thestock remain constant while manufacturing the merchandise. All units which are produced by the employees of the business entity to be sold in aeffective manner. In the travel and tourism sector, the funds are required which involves variable cost offlights, cost bookings of hotel as well as other costs (Forno and Garibaldi, 2015). Cost and profitanalysis assist in managing the funds of the firm and this tool is adopted by Carrib Happy ToursCompany so that the staff members can do proper planning to generate maximum revenue. Forthe stated analysis, tools can be used which includes Break even point as well as evaluation ofcontribution margin. CVP techniques is computed by using the formula: Px = Vx + FC + Profit where,P is selling price per unitV is variable cost per unitX is total number of units producedFC is total fixed costThe importance of this analysis in the financial management of travel and tourismindustry includes:It aid in analysing the profitability as well as productivity of the company (Standing,Tang-Taye and Boyer, 2014). It assists in doing the comparison among the different business of travel and tourism.It aid in forecasting the future plans and also helps in making the correct decisions withthe changes in the various levels of the operations in Carrib Happy Tours Company. This analysis helps the business entity in controlling the cost of the products.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Finance in funding in travel and tourism sector - Assignment
|20
|4721
|337

Report On The Carib Happy Tours Company - Importance Of CVP Analysis
|15
|4556
|36

CVP Analysis in Travel and Tourism Finance and Funding in Travel and Tourism INTRODUCTION 3 TASK 14 a. Definition of CVP Analysis and its importance in financial management
|14
|3715
|277

Finance and Funding in Travel Tourism Sector Assignment (Doc)
|20
|4370
|352

Finance and Funding in the Travel and Tourism Sector Assignment (Doc)
|14
|3982
|186

Concept of CVP Analysis Assignment
|19
|4657
|338