logo

Finance and Funding TABLE OF CONTENTS INTRODUCTION 4 TASK 14 1.1 Importance of cost and volume in financial management of travel and tourism business

   

Added on  2019-12-03

14 Pages4358 Words64 Views
Finance and Funding1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................41.1 Importance of cost and volume in financial management of travel and tourism business....41.2Analyzing pricing methods used in the travel and tourism sector.........................................51.3 Factors influencing profit for Thomas Cook.........................................................................6TASK 2............................................................................................................................................72.1 Different types of management accounting information......................................................72.2 Using management accounting information as decision-making tool..................................8TASK 3............................................................................................................................................93.1Interpretating financial accounting of TUI Travel Plc...........................................................9TASK 4..........................................................................................................................................114.1Analyses sources and distribution of funding for the development of capital projectsassociated with tourism.............................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................122

TABLE OF FIGURESTABLE OF TABLES3

INTRODUCTIONFinance and funding is an imperative way to manage resources and enables organizationto expand business at marketplace. It assists management to manage cost and make effort inrelation to increase overall profitability. Present report is about Thomas Cook Group Plc that isbased in UK and provides wide range of services to different types of visitors. Further, reportfocuses on pricing methods and uses of management accounting information that contributetowards managing all business activities. It facilitates to deliver good quality of services to largenumber of buyers. In addition to this, ratio of organization is also analyzed that assists to provideinformation regarding performance of firm for specified time span. TASK 11.1 Importance of cost and volume in financial management of travel and tourism businessThere are several types of costs associated with services of Thomas Cook that affectsoverall profitability of firm to a great extent. It consists of direct, indirect and fixed cost. Alongwith that, variable cost and allocation cost are also included that increase price of services. Forexample, direct cost includes labor cost who are directly associated with providing services tobuyers whereas indirect cost is administrative cost such as salaries of managers, electricitycharges and transportation cost (Acton, 2013). These two costs vary as per the scale ofproduction by which organization have to add on extra margin in services so as to increaseoverall rate of return. Here, fixed cost remains constant during the whole production life cyclewhereas variable costs vary as per the changes in the volume of production. It affectsprofitability of Thomas Cook to a great extent. Owing to this, firm manages its cost in aneffective way that contribute towards lowering down of cost of production and providingservices to buyers on affordable prices (Elearn, 2013). It enables organization to increase numberof customer and deliver them good quality of services so as to expand business over the globe.For accessing information of cost of different types of services that are being provided byThomas Cook, Cost Volume Profit analysis proved to be effective. It is the most suitable methodto keep record regarding profit as well as cost of services by which organization can be able toreduce cost of production and increase overall rate of return. It facilitates to create competitiveedge of the firm in the marketplace. It enables finance manager of firm to have proper recordingregarding different types of costs(Grieve, 2013). It aids to anticipate future cost that can beoccurred to management due to changes in the external as well as internal factors. It leads tomanage all business activities in an effectual manner. 4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment On Financial Analysis Of Thomas Cook
|13
|4070
|36

Sample Assignment on Finance & Funding
|15
|2895
|256

Finance & Funding in the Travel and Tourism Sector
|17
|4935
|45

Finance and Funding in the Travel and Tourism Sector
|13
|3677
|134

Finance and Funding INTRODUCTION TASK 13 1.1 Importance of costs and volume in financial management of travel and tourism businesses
|14
|4098
|262

Importance of Costs and Volume in Financial Management of Travel and Tourism Businesses
|20
|4575
|219