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Types of Management Accounting Information in Travel Business

   

Added on  2023-04-10

13 Pages1183 Words90 ViewsType: 90
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Finance and Funding in the Travel and
Tourism Sector
Types of Management Accounting Information in Travel Business_1

Discussing types of management accounting information in
travel business
Management accounting information is much useful for travel and tourism business in
order to manage costs in the best possible way.
The various types of management accounting information are as follows-
1. Financial statements
The financial statements are quite effective tool for management.
It includes important statements like cash flow statement, balance sheet and income
statement.
These financials are useful for various stakeholders to take enhanced decisions. This is
essentially required in the business as it help them to analyse potential of business.
Merlin Entertainments Plc is required to perform well so that stakeholders may be
benefited.
Thus, more investments may be made by them by seeking financial statements.
Hence, financials of company are quite important tool of management accounting
information used by internal and external users.
Types of Management Accounting Information in Travel Business_2

Cont.
2. Variance analysis
Variance analysis is useful for business so that improvements can be easily
done.
Merlin Entertainments Plc makes targets for the future which are to be
attained.
Actual results are obtained and then matched with budgeted one.
If there exists variance, then corrective action is taken to remove the same.
This technique of management accounting is known as variance analysis.
With the help of variance analysis, Merlin Entertainments Plc is able to
take corrective action.
This help to remove shortcomings and improvement is needed with much
ease.
Types of Management Accounting Information in Travel Business_3

Cont.
3. Budgets
It is a financial goal which is made by the company in order to make
estimation.
In this relation, estimation is made of expenditures to be incurred and
income to be earned.
This help management to take enhanced decision by assessing requirement
of departments.
This way departments are able to attain operational tasks in effective
manner.
Thus, budgets guide business to attain desired goals in the best possible
way.
Budgets are important so that costs may be controlled in a better way and
revenue can be maximised.
Types of Management Accounting Information in Travel Business_4

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