Management Accounting Information for Decision Making in Merlin Entertainment plc

This presentation discusses the management accounting tools used in decision making for Merlin Entertainment plc, including cost allocation report, budget report, variance analysis, ratio analysis, forecasting, and fund allocation report. These tools help in optimizing resource utilization, preparing strategies for forecasting, and improving the effectiveness and efficiency of the organization.

Finance and funding in travel and
tourism
TASK 2

Management accounting information used in
Merlin Entertainment plc
For decision making regarding business
operations of the entity, following
information are required to be collected for
further operations as:
• Cost allocation report
• Budget report
• Variance analysis
• Ratio analysis
• Forecasting
• Fund allocation report

Contd.
• Cost allocation report: It is helpful for cost
effectiveness and proper utilization of fund that affects
further business operations of Merlin Entertainments plc.
However, by preparing and maintaining this report,
effective cost for supplementing tourism services can be
set efficiently.
• Budget: It is one of the great management accounting
tool which is suitable for allocation of resources and
fund adequately. It is useful for profitability and
improving efficiency of Merlin Entertainments plc
through preparing strategies and planning procedures.

Contd.
• Variance analysis: Management accounting tool
as variance analysis is a process of creating
difference between actual and budgeted
operations. Thus, by using this tool, bridge can be
made between the differences. It is beneficial to
enhance business operations and improving its
services at high level. Therefore, variance analysis
remains effective for decision making and
forecasting regarding further business operations.
• Ratio analysis: Through this management
accounting tool, actual financial position is
analysed as well decisions are made for further
years. Including this, comparison of present and
last years' business operations is crated by which
several ideas are generated for better quality
services and improving monetary performance of
Merlin Entertainments plc.

Contd.
• Forecasting: Through this management accounting tool, forecasting for
business operations to be implemented in future time period is created.
Including this, planning procedure, decision-making and different tools are used
for effectiveness of Merlin Entertainments plc. Therefore, preparing forecasting
report remains essential for proper management of entire business operations
and following on all prepared strategies effectively.
• Fund allocation: By preparing and maintaining this management accounting
report, proper fund can be allocated effectively. Similarly, Merlin
Entertainments plc can improve its tourism services by investing adequate fund
for effective profitability. Therefore, fund allocation tool generates varieties of
ideas for using fund optimized as well profitability and sustaining its market
position for long time period.

Management accounting information as decision
making tool
Importance of management accounting tool as
decision-making tool can be understood as:
• Optimum utilization of resources and fund
• Preparing strategies for forecasting on business
operations of Merlin Entertainments plc.
• Helpful for development of organisation
• Entity's effectiveness and improving efficiency

Contd.
• Optimum utilization of resources and fund: Using management
accounting tools are essential for utilization of resources and fund
efficiently. Through this process, tourism services of Merlin
Entertainments plc can manage systematically also for their
improvements at high level.
• Preparing strategies for forecasting on business operations of
Merlin Entertainments plc: Through analysing entire business
operations, planning including forecasting and decision making is
created which remains suitable for management of entire
operations. In this regard, Merlin Entertainments plc can forecasts
and makes decisions regarding strategic implementations in current
years.

Contd.
• Helpful for development of organisation: Management
accounting tools are useful for decision making and
preparing strategies for providing better tourism
services. It is resulted to increasing in tourists'
satisfaction level for Merlin Entertainments plc. It
impacts on productivity and profitability of entity
effectively.
• Entity's effectiveness and improving efficiency:
Merlin Entertainments can improve its efficiency and
effectiveness at high level which remains suitable to
increase its productivity and profitability on large scale.

REFERENCE
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Cengage Learning.
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Lusardi, A. and Mitchell, O.S., 2014. The economic importance of financial literacy:
Theory and evidence. Journal of Economic Literature. 67(1). pp.5-44.
Petty, J.W. and et.al., 2015. Financial management: Principles and applications.
Pearson Higher Education AU.