Types of Management Accounting Information

Finance and funding in TTM
TASK 2

P2.1 Types of management accounting information
 Management Accounting is the function of internal business that is responsible for
collecting and reporting financial information for the internal uses of the organisation.
 This information is often related to the direct cost of services and products that are sold
to customers. Management accounting information is necessary for companies in order
to determine the efficiency and effectiveness of organisational operations.
 It also helps in determining the level of profits earned based on the assets that are used
to produce consumer products and services.
 This information is specific for all the owners and managers that need to review the
information for the purpose of decision-making.

CONTD...
Types of Management Accounting Information that can be used for travel and tourism
industry are:
 Cost allocation reports
 Budgets
 Forecasting

CONTD...
Cost Allocation reports:
 It is the primary function of management accounting. This report is prepared
by the accountants to show the allocation of capital amount to all the types of economic
resources.
 This report is also prepared to show how the business will be allocating its economic
resource costs to its goods and services. Common cost allocation method includes:
Job costing :
This method of costing records the cost of manufacturing and not the cost of process.
This type of costing is generally not popular in service industries like Merlin Entertainment
plc.