Management Accounting Information for Decision-Making

Management Accounting Information as a
Decision-Making Tool

Table Of Contents
• Types of management accounting
• Financial statement
• Budget
• Management information system
• Software used by the company
• Decision making tools
• Forecasting
• Setting price
• References

Types of Management Accounting
• Management accounting helps in decision
making which consists of following types:
• Financial Statements
• Variance Analysis
• Budgets
• Forecasts
• MIS

Financial Statement
• To determine the performance and position of
the company, the financial statements are
prepared which includes:
• Cash flow position by Cash Flow Statement
• Performance by Income Statement
• Financial position by Statement of Financial
Position

Balance Sheet

Income Statement

Cash Flow Statement

Budget

Management Information System
• Information is generated from external and
internal sources.
• Helps in communicating to managers the
information.
• Effective decisions taken for controlling, planning
and directing the activities.
• Interconnected system used for acquisition,
movement, control, management, storage,
transmission, etc.

Software used by the Company
• The company Dalata Hotel Group Plc. is using
two types of software which are as follows:
• ICT Software
• DSS Software

Decision-Making Tools
• Tools which can be used in decision making at
all levels of the company.
• There are three levels of management
decisions which are required to be taken and
they are as follows:
• Strategic
• Operational
• Tactical

Forecasting
• Predict the future with the normal
circumstances.
• There are various kinds of forecasts which are
prepared:
• Cash flow forecast which estimates the receipts and
payments in future.
• Balance sheet forecast prepared with the estimations
of the items in the balance sheet.
• Profit and loss forecast which will predict the gain or
loss in future for the company.

Setting Prices

References
• Dalata, H.G.P., 2015. About Us. [Online] Available at:
http://dalatahotelgroup.com/about-us/ [Accessed 26 January
2018].
• Dalata, H.G.P., 2016. Annual Report. [Online] Available at:
file:///C:/Users/Professional/Downloads/170330-Annual-
Report.pdf [Accessed 26 January 2018].
• Nowduri, S., 2011. Management information systems and business
decision making: review, analysis, and recommendations. Journal of
Management and Marketing Research, 7, 1.
• Johnson, S., 2018. Levels of Management Decision Making. [Online].
Available at: http://smallbusiness.chron.com/levels-management-
decision-making-58222.html [Accessed 26 January 2018].