Management Accounting Information in Travel and Tourism Businesses

Finance and Funding in
Travel and Tourism

2.1 Management accounting information used in travel
and tourism businesses
Introduction
• Management accounting is the tool which is being used by the venture to make the
effective decision of the business. There are several techniques that are included in
the management accounting which can helps the venture to measure their financial
performance.
• With the information collected with the help of management accounting, firm can
find their week spots. This will help them to take the corrective action in order to
reduce the week spots.

Types of management accounting informations
Different type of management accounting tools are as follows:
• Break even analysis
• Budgets
• Variance analysis:

Break even analysis:
• It is very significant tool which is being used by the venture in order to make the
effective decision.
• With the help of this tool, firm can able to analyse the sale target of the employees
and how much profit they are going to achieve in the coming time (Pantano and Di
Pietro, 2013).
• Firm first identify that how much variable expenses is being paid from the sale
revenue and then finds that what amount of sales needs to be made to cover entire
cost in the business.