Finance and Funding in Travel and Tourism

FINANCE AND FUNDING
Task 2

2.1 EXPLAINING DIFFERENT TYPES OF
MANAGEMENT ACCOUNTING INFORMATION
There are several types management accounting
information which can be used by ME is as follows:
Financial statements
Income statement:
 It furnishes information regarding the income and
expenses aspect of the firm.
 Income side of the profitability statement includes
interest, dividend received etc.
 Besides this, expenses side provides information
about the advertisement, miscellaneous, electricity
and other expenses etc.

CONTINUED
Cash flow statement:
 This statement includes information about the cash
inflow and outflow.
 Cash flow statement gives information regarding the
business activities in three sections such as
operating, investing and financing etc.

CONTINUED
Balance sheet:
 Statement of financial position assists Merlin Entertainment
(ME) in getting information about assets and liabilities.
 Assets side of balance sheet contains fixed (land, machinery
etc.) and current (cash, debtors etc) financial aspects.
 On the other side, liabilities side renders information about
shareholders equity, long term dent and current monetary
obligation (creditors, bank overdraft etc.).
All these aspects clearly present that financial statements
provide management of the firm with huge data or
information.

CONTINUED
Budget:
 It may be defined as a financial framework that contains
information regarding the expenses which will be
incurred by the firm during the specified time frame.
 Besides this, it also provides deeper insight about the
income which will be generated by the firm within the
predetermined time period.
 In this way, budget provides direction to the personnel
about the way in which they need to spend money.
 Hence, budgeting framework assists in making optimum
use of the financial resources.

CONTINUED
Variance:
 It may be defined as a tool or process in which manager
makes comparison of the actual performance with the
budgeted aspects.
 By this, manager would become able to assess the
deviations take place in the performance aspect of the
firm.

2.2 IDENTIFYING THE USE AND ROLE OF
MANAGEMENT ACCOUNTING INFORMATION IN
DECISION MAKING
In the dynamic business environment, management
accounting information system assists higher authority in
making suitable decisions which aid in the profitability
aspect.
 Assessment of trend
 Better forecasting
 Investment decision
 Setting of suitable criteria’s:

REFERENCES
WisCombe, C. and et.al., 2016. Finance and funding in the
travel sector. Operations Management in the Travel
Industry. p.154.
Dawson, C., 2015. How To Finance Your Research Project:
A Practical Guide to Costing Research Projects and
Obtaining Funding. Robinson.
Robinson, P. and et.al., 2016. Operations management in
the travel industry. CABI.
Navickas, V. and Malakauskaite, A., 2015. The possibilities
for the identification and evaluation of tourism sector
competitiveness factors. Engineering Economics. 61(1).