Finance Report: Management Accounting Info in Tourism Sector

This report delves into the application of management accounting information within the tourism sector, focusing on its significance for entities like Dalata Hotel Group Plc. It highlights various types of management accounting information, including financial statements, budgets, variance analysis, forecasts, and MIS, emphasizing their role in informed decision-making. The report elaborates on how these tools aid in internal operations, manpower planning, cost control, and inventory management within the hospitality industry. By analyzing cash flows, preparing job cost reports, and utilizing cost accounting systems, hotel management can optimize resource allocation, minimize wastage, and enhance overall financial performance. The study references scholarly articles to support its findings, underscoring the importance of management accounting in achieving operational efficiency and strategic goals in the tourism sector. Desklib provides access to this and other solved assignments to aid students in their learning.

FINANCE AND FUNDING

Various types of management accounting information
◦ 1. Financial statements-
◦ This is good decision tool which shows overall position of company in effective way.
◦ Financial statements such as cash flow statement, balance sheet and income statement are useful financial tools
which helps various stakeholders’ of hotel to take better and effective decisions by analysing financial health of
it.
◦ It is used by creditors, investors to take enhanced decisions regarding whether to provide funds to Dalata Hotel
Group Plc or not.
◦ Thus, financial statements are important part of travel and tourism sector.
◦ 2. Budgets-
◦ Budgets are prepared for estimating income and expenses for a particular time period.
◦ It is form of snapshot which company provides so that expenses can be controlled with much ease.
◦ This is quite useful for organisation as it provides them what are the expenses that will be incurred in current
period.
◦ Moreover, it is used for making decisions so that planning can be done quite effectively.

Cont
◦ 3. Variance analysis-
◦ The variance analysis is another useful tool for taking decisions. Budget is prepared and is
matched with actual output.
◦ If any deviations or variance is found, then corrective actions are taken.
◦ This is done by Dalata Hotel Group Plc to take effective decisions by removing variances.
Thus, variance analysis is quite useful tool for monitoring and controlling as well.
◦ 4. Forecasts-
◦ Estimations are done by Dalata Hotel Group Plc to predict future requirements of it. This helps
to achieve goals in effectual manner as forecasts are made by it.
◦ Prediction is done by hotel so that it may analyse need of all the departments in much
effective way.
◦ Risk and uncertainty prevails but business make decisions for the betterment of it.

Cont
◦5. MIS-
◦MIS (Management Information System) is quite effective tool for recording
information of customers.
◦ It is recorded by Dalata Hotel Group Plc with the help of entering data in
computers.
◦It means that computers are used for recording and maintaining information of
customers which visits hotel on daily basis.
◦ The basic data is prepared and then MIS reports are being provided to top
management to take better and effective decisions

Use of management accounting information in tourism sector
◦Management accounting information is quite useful for hospitality industry.
◦ Dalata Hotel Group Plc is highly benefited by using ths information for taking
decisions in effective manner.
◦Internal decisions can be made quite easily and this is important for managers
who are responsible for controlling operations in the hotel.
◦ The use of management accounting information is for management so that
daily operations can be controlled quite effectively.
◦ Manpower planning is also achieved by the hotel business and as such,
effective decisions can be made with much ease.

Cont.
◦Various products and service such as beverages, administration and related to
booking decisions are made by the management quite effectively.
◦ Customers’ orders are carefully analysed by the management so that spoilage
and wastage of foods are not made within the hotel.
◦As such, Dalata Hotel Group Plc which has good brand name takes
management accounting information in that way so that costs are controlled in
effective way.
◦ It is made possible by this information as costs are adequately controlled and
management is able to take better and effective decisions.
◦ Cost accounting system is utilised in Dalata Hotel Group Plc so that various
direct and indirect costs can be minimised up to great extent.

Cont
◦Also, job cost reports are also prepared and given to management
so that it can analyse what expenses are incurred on various jobs
performed in the hotel with much ease.
◦Mainly, cash inflows and outflows are analysed so that
management is able to assess income earned and expenses incurred
on various elements in the hotel.
◦In simple words, budgeting plays a key role in forecasting expenses
and income by the hotel.
◦It helps to analyse where departments need resources to carry out
operational tasks with much ease.

Cont
◦Huge amount of inventory is needed in Dalata Hotel Group Plc which is used
for carrying out tasks.
◦If inventory is more in warehouse then it is required, it will lead to Dalata
Hotel Group Plc to take better and effective decisions unnecessary spoilage.
◦To remove this barrier, inventory management report is prepared and given to
top management to take decisions whether to call for inventory or not.
◦This information is provided by management accounting information.
◦Thus, it can be said that such management information is highly useful for
Dalata Hotel Group Plc to take better and effective decisions.

References
◦Pierce, A. K., 2016. The financing activities of Canadian small and medium-
sized enterprises in tourism industries.
◦Karmanova and et.al, 2015. Cluster model of regional tourist business in
Russia. Asian Social Science. 11(6). p.279.
◦Airey, D., Tribe, J., Benckendorff, P. and Xiao, H., 2015. The managerial gaze:
The long tail of tourism education and research. Journal of Travel Research.
54(2). pp.139-151.
◦Castaño-Isaza, J., Newball, R., Roach, B. and Lau, W. W., 2015. Valuing
beaches to develop payment for ecosystem services schemes in Colombia’s
Seaflower marine protected area. Ecosystem Services. 11. pp.22-31.

THANK YOU