This presentation discusses the types and uses of management accounting information in the smooth running of businesses. It covers costing, budgeting, and accounting tools, as well as the role of financial statements, forecasting, budgets, and management accounting systems in decision making.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
FINANCE AND FUNDING TASK 2
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
P2.1 management accounting information its types and uses Management accounting information can help the Merlin entertainment in smooth running of its business by providing necessary information to the management. Basically management accounting information is a management tool that involves costing, budgeting and accounting tools. •Management accounting information provides information according to the each kind of industry. •This helps the management in controlling the cost and making decisions. •Costing and budgeting techniques will help Merlin Entertainment in identifying their actual cost. •Accounting tools will help the management in determining the profitability of merlin entertainment.
Financial statements •Management accounting facilitates information regarding the income statement, statement of financial position and growth of the company. •Statement of income provides the information regarding overall expenses and overall incomes of the company. •Financial statements includes statement of cash flow that provides information about inflow and outflow of cash from the organisation. •.
Forecasting •On the basis of past year performances, current year results are forecasted by the management well in advance. •It attempts to predict the future outcomes and results on the basis of events that have occurred in past and with the insight of management. •Forecasting will help Merlin entertainment in planning the future events, budgeting the resources along with the estimation of future growth. •It involves application of Mathematical, scientific and statistical techniques to get more reliable results than the forecasting through personal observation and using of ordinary tools.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Budgets •Post analysis of financial statements, management of merlin entertainment can prepare budgeted reports. •These budgeted reports will provide the information regarding, the future budgets for various activities of the organisation. •These budgets for various activities may be flexible orfixedaccordingtotherequirementofthe organisation.
Management accounting system •Management accounting system is software based that provides financial information in computerised form. •Management accounting system are developed internally in such a way that they provide information to the management in making good economic decisions.
P2.2 Management accounting information in Decision making The main objective of management accounting information is to facilitate the decision making intheorganisationlikeMerlin entertainment.Forfacilitatingthedecision making,managementaccountingtoolwill providethenecessaryinformationtothe management of Merlin entertainment.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Various tools for decision making •With the help of this information, management will be able to know the current financial position of Merlin entertainment. •Thisinformationwillenablethemanagementinknowing, where the company is lacking behind. •Theloopholesintheoperationsofthecompanyand management will be easy identifiable. •The information will allow the management in forecasting the future outcomes, for which this will enable the planning.
Various uses to Decision Making •Forecasting future outcomes will enable the management in making fixed or flexible budgets regarding various activities of Merlin entertainment. •This will also enable the management in knowing advance tax liability of the company, management can conduct tax planning accordingly. •Management accounting information will also help the management in knowing the liquidity and profitability of the organisation. •Management will be able to know what past decision have helped the company in growing and what decision have made a negative impact to the company.
Various uses to Decision Making •This will also help management in maintaining the systematic records of the company. •Basedonthe pastevaluation, management will be enable to take better future decisions that will help merlinentertainmentinachievingitsorganisational mission, vision, goals and objectives.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES Brigham, E. F. and Houston, J. F., 2012.Fundamentals of financial management. Cengage Learning. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Kim,J.andKrishnan,R.,2009.Noveltwo-switch-based switched reluctance motor drive for low-cost high-volume applications.IEEETransactionsonindustryapplications. 45(4). pp.1241-1248.