Types of management accounting information

This presentation discusses the types of management accounting information and how it helps in the operations of Merlin Entertainment plc. It covers budgeting, costing, financial statements, variance analysis, budgets, management information system, and forecasting. The information provided by management accounting helps in decision making and achieving organizational goals and objectives.

Finance and funding in TTM
TASK 2

P2.1 Types of management accounting information
Management accounting is the management tool that will help the
management of Merlin Entertainment plc in preparing and implementing the
favorable packages for the effectual operations of their activities.
 Management accounting includes various accounting techniques of budgeting
and costing. These techniques help the Merlin Entertainment in reducing the
cost of its activities.
 Management accounting uses various tools that helps the management in
operating its activities:
 This includes accounting tools that will help the management of the company
in determining the economic ability of the organization.

CONTD…
Financial statements
 Management accounting information facilitates the financial statements of the
organisation and also helps the management in meeting the short term and long term
credibility of the company.
 Financial statements that are facilitated by management accounting information
includes balance sheet that determines the financial position and the growth of the
company.
 It includes statement of profit and loss that identifies the overall revenues and overall
expenses of the organisation.
 It also includes the cash flow statement that provides the information about the flow of
cash in and out the organisation.

CONTD…
Variance analysis
 Variance analysis helps the management in analysing the variations between
actual results and forecasted results.
 This will allow the management in identifying the loop holes due to which the
variations occurred so that the management can act upon it.
 Management employees of Merlin Entertainment plc including directors,
senior managers and accountants must analyse their financial statements on
regular basis to detect the variances and to rectify them.

CONTD…
Budgets
 This method of management accounting includes budgeted reports which are
prepared after the analysis of financial statements by the professional of
Merlin.
 Budgets of the company may be fixed or flexible according to the need of the
company.
 Budgets includes budget for various activities like sales, production, salary
expense, etc.

CONTD…
Management Information system
 Management information system provides the data in the computerized form
about the financial information of the organization.
 It provides information in such a way that it provides reports about the
operational activities of the organisation on continue basis for each level of
management.

CONTD…
Forecasting
 Forecasting of present year results are done well in advance by the
management on the basis of past year's performance.
 After forecasting loopholes are identified and rectification steps are taken to
overcome the loopholes.
 With the help of forecasting and identifying the loop holes, management of
Merlin Entertainment plc should make necessary plans to achieve its
organizational goals and objectives.

P2.2 Use of Management accounting information in
decision making
 Management accounting information provides the necessary
information to the management to make decisions.
 Through this Information management of Merlin entertainment
plc can assess the current financial position of the company.
 This will make them identifying the loopholes in the operational
activities of the company and take corrective measures to rectify
them.
 This information will also help the management in measuring the
profitability and liquidity of the company.

CONTD…
 Management accounting information helps the management in interpreting the
financial information of the company with the help of financial ratios and
consolidated financial statement.
 Results from the interpretation of financial statements will help the
management in making decisions necessary for the organisation.
 Best decisions of the management will allow the company to achieve its
organisational goals and objectives.

REFERENCES
Rani, N., Yadav, S. S. and Jain, P. K., 2015. Financial performance analysis of
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Commerce and Management. 25(4). pp.402-423.
Said, H. A., 2016. Using Different Probability Distributions for Managerial
Accounting Technique: The Cost-Volume-Profit Analysis. Journal of Business
and Accounting. 9(1). pp.3.
Uechi, L. and et.al., 2015. Sector dominance ratio analysis of financial markets.
Physica A: Statistical Mechanics and its Applications. 421. pp.488-509.