Management Accounting Information: A Decision Tool in the Travel Industry

This paper explores the role of management accounting information as a crucial decision-making tool in the travel industry. It delves into the types of information used, its benefits, and its importance in organizations like Dalata Hotel Group. The paper highlights how management accounting information helps in improving overall business growth by providing insights into financial performance, budgeting, variance analysis, and cash flow forecasting. It emphasizes the importance of accurate and timely information for effective decision-making and achieving organizational goals.

Management Accounting information acts as decision tool in
travelling business

Table of contents
• Management Accounting information acts as decision tool in travelling
business
• Introduction
• Management Accounting Information
• Types of management accounting information
• Uses as a decision making tool
• Benefits of management accounting information
• Importance To Dalata Hotel Group
• Helps in improving overall growth of business.
• conclusion
• References

Introduction
• Management Accounting information is a system that
provides the knowledge for financial and statistical data.
• Provides decision making to managers.
• Types of information includes financial statements, variance,
budgets etc.
• Increases profitability and growth.

Management Accounting Information
• It is a process of preparing the financial reports and final
accounts of the company. The advance preparation of all the
reports help the managers in decision making.
• It helps to maintain the systematic records of financial data.
• It not only serves the insiders of company but too helps the
outsiders in helping them with the financial data of company.
• It forecast the trends and cash requirements.

Types of management accounting information
• Financial statements: includes balance sheet and profit and
loss and other final accounts preparation
• Budgets; it includes cash budget, sales budget, purchase and
sales budget.
• Variance analysis; this method measures the difference of
planned and actual sales.
• Cash flow forecasting: this method predicts the cash
requirements.

Uses as a decision making tool
• It is used by managers to guide them in the ascertaining the
financial position of the company.
• Helps in knowing profits and losses of company.
• Helps in ascertaining the competitive level of company.
• Helps in guiding the real net worth of company.

Benefits of management accounting information
• It provides the accurate financial and statistical
information.
• Guides the managers in decision making process.
• Helps to maintain a systematic records of all the
financial data.
• Helps to update past or historical data in the new
books of accounts.

Importance To Dalata Hotel Group
• It provides its managers to guide in decision making process
through timely available of financial reports.
• Helps to update and keep a systematic records of all the
affairs of hotel business.
• Helps the insiders and outsiders of company to get available
financial records on time.

Helps in improving overall growth of business.
• Helps in meeting objectives, retains the growth,
increases the return on capital, improves the net
worth.
• Improves overall efficiency and productivity of the
business.
• Provides and guides in decision making to the
managers of the company.

Conclusion
• Management accounting system helps in decision making to
the managers. Helps in interpreting the financial statements,
budgets, variance analysis as well forecast the cash flows.
• It helps in meeting objectives, making budgets , solving the
current issues , forecasting the trends and cash flow .
• It tries to bridge the gap of accomplishing the mission.
• Tries to upkeep and maintains the record in accurate manner.

References
• Collier, P.M., 2015. Accounting for managers: Interpreting
accounting information for decision making. John Wiley & Sons.
• Laudon, K.C. and Laudon, J.P., 2016. Management information
system. Pearson Education India.
• Epstein, M.J., 2018. Making sustainability work: Best practices
in managing and measuring corporate social, environmental
and economic impacts. Routledge.
• Smith, M., 2017. Research methods in accounting. Sage.
• Booth, P., 2018. Management control in a voluntary
organization: accounting and accountants in organizational
context. Routledge.