Financial Analysis for Tour Businesses
Added on 2020-06-04
12 Pages3418 Words37 Views
|
|
|
FINANCE AND FUNDINGTRAVEL AND TOURISMSECTOR
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P 1.1 Explain the importance of costs and volume in finance management of travel andtourism businesses.......................................................................................................................1P 1.2 Analyse pricing methods used in the travel and tourism sector.........................................2P 1.3 Analyse factors influencing profit for travel and tourism businesses................................3TASK 2............................................................................................................................................4P 2.1 Explain different types of management accounting information that could be used intravel and tourism businesses......................................................................................................4P 2.2 Assess the use of management accounting information as a decision-making tool..........53.1 travel and tourism financial accounts....................................................................................54.1 analyse sources and distribution of funding for the development of capital projectsassociated with tourism...............................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONFinance and funding in hospitality business is most necessary terms which must be takenin account of manager of organisation in proper way. Various financial management andaccounting approach can be utilised by business manager in order to managing finance activitiesin business. In the report, the company has been selected which is Carnival Corporation and Plc,which is UK based the largest hotel organisation. In addition to this, it can be said that, the reportwill be discussed about importance of costs, volume in financial management in the hotel andalso analysis of pricing method used in travel and tourism sector. Different types of managementaccounting information that can be used in the hotel and also management accountinginformation for decision making tools. Apart from it, the investigation will also be discussedabout sources and distribution of funding for the development of capital projects associated withthe hotel.TASK 1P 1.1 Explain the importance of costs and volume in finance management of travel and tourismbusinessesIn order to managing finance in Carnival Corporation and Plc, there are numbers ofcosting and volume computing approaches are being used by its manager in case of reduction ofcosting in the firm. Importance of costing: This is one of the crucial element in the business as they provideare using several types of costing in the business in order to examining proper costing of the firmand apart from it, different types of costing is being used by the company for different-differentpurpose in business (Airey and Chong, 2010). Direct costs: Direct costing are those costing which is related products and services directoccurs in Carnival Corporation and Plc , in case of functioning its various operational functions.In the hotel some direct costing incurring which is, Direct labor, direct materials, commissions,some rate and wages of employees. These are some essential direct costing which occurs atworkplace while various types of operational activities running in the hotel, its manager can usemanagerial approached to cutting cost down in firm to gaining appropriate profit (Benson andHenderson, 2011).Indirect costing: These types of costing can be fixed and variable form. In CarnivalCorporation and Plc , some indirect costing are associated with its operational activities and1
indirect costing can be used for examining expenses of business activities. The hotel is bearingindirect costing for such activities, advertising, computing, maintenance, security, supervisionetc. all these activities contain large amount of expenses for the firm. So its manager need tocomputing it's at workplace by using managerial accounting systems.Volume:Break even analysis: Break even analysis is an effective approach which can be used byBritannia business manager widely by production management and management accountingterms in order to comparison of total variable costs to fixed costs for total sales revenue of thebusiness in order to determining the level of sales volume in the enterprise (Buckley, 2012). Thecompany professionals need to analyse different price levels relating to various levels ofdemands to reaching to the break event point of the business, where the firm can gain desiredprofit in industry.P 1.2 Analyse pricing methods used in the travel and tourism sectorMarket lead pricing: The company is using the costing method in order to analysingpricing and also gaining proper profitability as well. The organisation has been set up a pricing inspecific hotel services, as per its standard so all other business also have to follow its standardwhich does not provide opportunity to the company to let it down standard of pricing in market.It helps them to meeting to their desired profitability in the market (Chaisawat, 2012). Marginal costing: This cost is calculating by Carnival Corporation and Plc managerwhere the company reaches to break even point. Marginal costing inclusion some items which isassociated to direct material costs, direct labour costs, direct expenses costs and variableproduction overhead costs. All these costing can be included in computing various costs ofbusiness in industry.Return on investment: return on investment is a performance measure, used to evaluatethe efficiency of an investment or compare the efficiency if a numbers of different investment(Dwyer, Forsyth and Dwyer, 2010). It can be said that, in the hotel, multiple numbers ofinvestors are investing on its various section, which can bring out appropriate amount of moneyas per their proportion of investment.Absorption costing:This is a managerial accounting cost method of expensing all costsassociated with manufacturing a practical product and it demands for basically adoption ofaccounting principles in order to gaining proper issues in business. In this pricing statements,.2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents