Types of management accounting information

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.