Management Accounting Information as a Decision Making Tool in Travel and Tourism Businesses

This presentation discusses the importance of management accounting information in decision making for travel and tourism businesses. It explains different types of management accounting information, such as profit and loss statements, cash flow information, and balance sheet information. It also covers budgeting, variance analysis, forecasting, and MIS. The presentation concludes with the benefits of management accounting information and its significance for the success of businesses.

Finance and Funding in the Travel and Tourism Sector
LO2 Understand the use of management accounting information as a decision
making tool in travel and tourism businesses
2.1 explain different types of
management accounting information
that could be used in travel and
tourism businesses
management accounting information
Management accounting system helps the organization to provide
meaningful information in decision making process for maintaining
ongoing process of business (Horngren, 2009). Financial
management of an organization is incorporated management
accounting information system in order to decide how to buying or
making decision and move business forward
benefits of the management
accounting information system
The main benefits of the management accounting information system
•Helps the business i.e. Dalata Hotel group plc in monitoring and
forward planning
•Observing actual performance and projects
•Planning and controlling the organization activities
• Goal setting, decision making and problem solving
•Effective business tools and helps in taking future policies
• The management accounting system is vital for Dalata
Hotel group plc because it offers;
• An effective recording system
• Effective decision making process
• Helps the business to estimate the future
• An effective analysis performance
• Helps the business in interpreting and analysing the
financial information
2.2 assess the use of management
accounting information as a decision-
making tool
• Utilization of the financial statement aids the organization
in the process of decision making by representing
organization financial positions and evaluating the future
requirements of business.
• Budget is mainly utilized by the business Dalata Hotel
group plc to plan the upcoming financial transaction.
Moreover, it aids the organization’s management in
decision making by offering proper information and
deciding the function r
• MIS i.e. management information system would helps the
organization in decision making process by collecting and
storing the information of day to day transaction of basis of
effective manner with not error (Ross, Westerfield, and
Jaffe, 2005). It offers an effective decision making process
for Dalata Hotel group plc
• Financial forecasting techniques also helps the
management of Dalata Hotel group plc in order to make
better decision in future performance. The organization can
incorporate trend analysis techniques to predict the
upcoming performance of an organization equired by
organization in future
• Investment reprisal techniques help the business provide
the information regarding performance of the project i.e.
upcoming project is associated with the high profits or not.
In order to make an effective decision through investment
appraisal techniques management mainly implemented
IRR, ARR, NPV and PBP (Langdon, 2002).
• Therefore from the findings and analysis it can be said that
decision making techniques plays the significant role for an
organization and helps the business to execute its
operation in market in successful manner.
Conclusion
Financial statement::- The financial manager mainly uses the
profit and loss statement, cash flow information and balance sheet
information in order to identity organization performance in terms
of revenues, profits, assets backing of the business and operation
efficiency (Bodie, & Merton, 2013). In context to Dalata Hotel
group plc financial statement analysis is vital as it helps them to
evaluate and analyze the direction of business process and need of
any course of correction.
Budget:- Budgeting helps the organization to provide control over
money and focused on organization goals.
Helps the business to determine what is going on with their
resources and money
Helps to save time and utilizes Dalata Hotel group plc available
resources in optimum manner
Helps the business to identify upcoming issues and enable to save
unexpected and expected costs
Helps the business in performance evaluation and assumption
review
Variance analysis:- Variance analysis techniques help the Dalata
Hotel group plc to measure the gap analysis between real and
planned values. Variance analysis is highly useful for Dalata Hotel
group plc for fixing roles and responsibilities of members or
department in business process. It is useful techniques in cost
control and helps the top management to profit planning process. It
is utilized by the Dalata Hotel group plc to as a control mechanism.
Forecasts : Forecasting methods used by Dalata Hotel group plc to
find out the performance of the organization in upcoming years.
Forecasting methods is beneficial in exaction of the strategic
planning and the improvement of the production scheduling. As the
organization is based on travel and tourism sector, therefore it helps
to manage the credit and cash flow in successful manner. Dalata
Hotel group plc use the time series methods in forecasting
techniques that provide the information based on the past pattern of
data.
MIS:-Management information system helps the business Dalata
Hotel group plc to achieve higher level of efficiency as well as
improved the quality in decision making process. Moreover it also
helps the organization to promote an effective communication
between each department in business and offers strengths
organization’s competitive benefits. With the help of an effective
management information system the organization can accomplish
better customer’s satisfaction as it helps them to identify customer’s
preferences in successful manner.
benefits of the management
accounting information system
Financial statement:
Budget
Variance analysis
Forecasts
MIS
The management accounting information system helps the
organization to offers meaningful information in discoing
making process. The business can considered the management
accounting information while making decision and building
strategic objective of business. For efficient and effective
working of any organization the management accounting
information system is the prominent factors which contribute
towards success
References
• Sanzo, R. (2008) Ratio analysis for small business. Washington, D.C.: Small Business Administration,
Office of Management Information and Training.
• Sanzo, R. (2008) Ratio analysis for small business. Washington, D.C.: Small Business Administration,
Office of Management Information and Training.
• Ross, S., Westerfield, R. and Jaffe, J. (2005). Corporate finance. 1st ed. Boston: McGraw-Hill/Irwin.
• Penman, S.H. and Penman, S.H., 2007. Financial statement analysis and security valuation (p. 476).
New York: McGraw-Hill.
• Langdon, K. (2002). Investment appraisal. 1st ed. Oxford, England: Capstone Pub.
• Horrigan, J. (2010) Financial ratio analysis. New York: Arno Press.
• Horrigan, J. (2010) Financial ratio analysis. New York: Arno Press.
• Horngren, C.T., 2009. Cost accounting: A managerial emphasis, 13/e. Pearson Education India.
• Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism.
Taylor & Francis.
• Bodie, Z. & Merton, R. (2013) Finance. Upper Saddle River, NJ: Prentice Hall.
• Atkinson, A. (2005). New sources of development finance. Oxford: Oxford University Press
Introduction