Management Accounting Information in Travel and Tourism Sector

This report analyzes the application of management accounting information within the travel and tourism sector, using Merlin Entertainment Plc as a case study. It explores various types of management accounting information, including budgets, variance analysis, MIS, and financial statements, and their significance in enhancing business performance. The report details how this information aids decision-making processes such as forecasting, investment choices, identifying issues, preparing budgets, and developing new products. It emphasizes the importance of financial data in forecasting future sales, managing expenditures, and making strategic plans to improve organizational performance. The report also highlights how accounting information supports the creation of quality travel packages that meet customer needs and contribute to overall revenue growth.

Finance and Funding in the Travel and
Tourism Sector

2.1 Different types of management accounting information
Introduction:
• Presentation is based on the Merlin Entertainment Plc.
• Various management accounting information will be discussed in this
presentation.
• Assessment of use of information for decision making will be done in this
study.

Management accounting information
• Accounting information are the essential aspect, with the help of this,
Merlin Entertainment Plc can enhance its business performance.
• It supports cited firm in forecasting the sales volume and preparing budget
so that desire profit can be earned by the entity.

Types of Management accounting information
There are several types of information which is used by the finance manager
of Merlin Entertainment Plc:
 Budget
 Variance analysis
 MIS
 Financial statements

Variance analyses
• Some times projected budget gets differed from the actual budget.
• With the help of this finance managers of Merlin Entertainment Plc can
identify the loop fall and can make strategies to reduce the gap between
them.

Contd...

MIS
• It is the computerized system hat supports the entities in keeping record
safely.
• With the help of MIS company can get relevant information about previous
history and can make strategies for improving performance of the
organization.

Budget
• It is an essential tool that supports organization like Merlin Entertainment
Plc in forecasting the future earning.
• With the help of this organization can make effective control over their
expenditures and can enhance profit of the company.

Financial statements
• Income statement, balance sheet, cash flow statement etc. are necessary
accounts which are important for the firms to prepare.
• Finance manager of the Merlin Entertainment Plc can compare ratios with
previous performance and can identify he problem. By this way future
profit of the company can get improved.

2.2 Use of management accounting information as a decisions
making tool
 Management accounting information are the important details that are
used by the entities for making sound decisions.
 That supports in forecasting the future of the business for instance future
sales and toal future expenditures can be assumed with the help of these
information.

Contd...
Use of these details are as below:
 Forecasting
 Investment decisions
 Identify current issues
 Preparing budget and set goal
 New product development
 Raising capital