Types of Management Accounting Information in Travel Business

Finance and Funding in the Travel and
Tourism Sector

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.

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.

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.