Types of Management Accounting Information in Finance and Funding

FINANCE AND FUNDING

Various types of management accounting information
◦ 1. Financial statements-
◦ This is good decision tool which shows overall position of company in effective way.
◦ Financial statements such as cash flow statement, balance sheet and income statement are useful financial tools
which helps various stakeholders’ of hotel to take better and effective decisions by analysing financial health of
it.
◦ It is used by creditors, investors to take enhanced decisions regarding whether to provide funds to Dalata Hotel
Group Plc or not.
◦ Thus, financial statements are important part of travel and tourism sector.
◦ 2. Budgets-
◦ Budgets are prepared for estimating income and expenses for a particular time period.
◦ It is form of snapshot which company provides so that expenses can be controlled with much ease.
◦ This is quite useful for organisation as it provides them what are the expenses that will be incurred in current
period.
◦ Moreover, it is used for making decisions so that planning can be done quite effectively.

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◦ 3. Variance analysis-
◦ The variance analysis is another useful tool for taking decisions. Budget is prepared and is
matched with actual output.
◦ If any deviations or variance is found, then corrective actions are taken.
◦ This is done by Dalata Hotel Group Plc to take effective decisions by removing variances.
Thus, variance analysis is quite useful tool for monitoring and controlling as well.
◦ 4. Forecasts-
◦ Estimations are done by Dalata Hotel Group Plc to predict future requirements of it. This helps
to achieve goals in effectual manner as forecasts are made by it.
◦ Prediction is done by hotel so that it may analyse need of all the departments in much
effective way.
◦ Risk and uncertainty prevails but business make decisions for the betterment of it.