Management Accounting: Overview, Types of Cost, and Critical Analysis

Management accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Overview of company ................................................................................................................1
Type of cost.................................................................................................................................2
Critical analysis...........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Management accounting is also define as managerial accounting, which is refers to the
systematic procedure of providing information and resources to the managers in the decision
making process. Management accounting is the aspect that is used by only internal team of the
organisation and this is the only things which makes it different form the financial accounting.
This has been associated with the financial informations and report such as invoice, balance
sheet etc. that are provided by the finance department of the company to the management team
so that this data can be used for better and appropriate decision, controlling over enterprise and
planing for activities and developments(Abdusalomova, 2020). Cost is define as the monetary
value which is pent by the company in order to produce something and to run all functions
effectively. There are various type cost which is utilised by the company for generating higher
income. The below report is based on Harriot hotel developed in 1941 by john D. brockville, in
current scenario it is an key player in hotel industry across the globe. This company has been
using several fixed and variable cost that help in accomplish its goals with higher revenue.
Moreover, business in the accommodation and food services in UK has been faced the decrease
in footfall in the last days due to the impact of COVID-19.
MAIN BODY
Overview of company
Harriot hotel is an American based multinational hotel group which has been established
by john d. brockville in 1941. this is one of the key player and leader in the global hotel industry
with key operations in the America, Europe, Asia and Africa. It has been used the aggressive
expansion strategy which is financed by major international banks in order to get the rapid
expansion of the business globally so that success and growth can be achieved effectively. But
the due to the recently the covid-19 pandemic, the leading government of the several nations
impose lock and has not allow people to move to different place which leads to the decrease in
revenue of the company. The CEO of Harriot has made the statement during the annual general
meeting that has been conducted virtually “ this year is the worst year ever for the business”.
However in order enhance the productivity and to make the business again on track, hotel has
been maintain its expansion strategy while formulating strategies such they have been focusing
on the increasing room capacity along with cost cutting strategy in order to reduce looses.
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