Different types of management accounting information for business decisions

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Different types of management accounting information that can be
used in business
• There are different sort of management accounting information that can be used in the business for making business decisions. Some of the specific
type of management accounting information that are commonly used by firms including Merlin entertainment are given below.
• Budget: Budget is prepared by most of business firms because in same assumptions of cash inflow and outflow is made. There are different type of
budget that are prepared by the business firms like production, sales and marketing budget etc. All these budgets are used by the business firms for
making business decisions. It can be observed that in Merlin entertainment also cash budget and sales as well as marketing budget is prepared (Lins,
Servaes and Tufano, 2010).
• This is because under these budgets cash flows are pre-determined and firm try to receive and pay amount in line to determined values. By doing so
cash outflow is controlled to great extent by the business firms. In case it is identified that it is possible that over expenses can be made in the
business then in that case on time action is taken to control expenses and in this way budget assist in making business decisions.

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• Variance analysis: Variance analysis is another technique under which difference between determined value and actual performance is identified and on that basis it is
determined whether firm perform good or bad in its business (Ayyagari, Demirgüç-Kunt and Maksimovic, 2010). In case of any element it is identified that variance is
negative then in that case steps is taken to improve firm business performance. Hence, it can be said that variance analysis is the one of the most important method that
can be used to make business decision in right direction.
• Break even analysis: On the basis of breakeven analysis Merlin entertainment identify that up to what number of customers it need to create in its business at
determined price level so that fixed and variable expenses can be at least covered in the business. It can be said that break even analysis is the one of the most important
method that can be used to receive inputs that need to be taken in to consideration for making good business decisions (What is a break even analysis?, 2017).
• It depend on the firm that which of the method it used for making business decisions. Firms can use multiple methods to analyze their performance and to receive
inputs for making business decisions. There are multiple alternatives that are available to the business firms and they must prudently select one of the best approach to
make business decisions.