Finance & Funding: Management Accounting for Tourism Decisions

This report provides an overview of finance and funding within the travel and tourism sector, emphasizing the role of management accounting information in effective decision-making. It discusses various types of management accounting information, including financial statements, budgets, management information systems, and financial projections, and how these tools are utilized by executives to make informed choices that benefit their organizations. The report highlights the importance of financial statements in depicting market share and value, budgeting for future business activities, management information systems for data collection, and financial projections for effective resource utilization. Furthermore, it underscores the significance of making sound investment decisions to ensure adequate funding for business operations and sufficient profit generation. The document concludes with a list of references used in compiling the report, offering additional resources for further exploration of the subject matter. Desklib provides access to this and other solved assignments for students.

FINANCE & FUNDING IN
TRAVEL AND TOURISM
(TASK 2)

Cover Content
 Introduction
 Different types of management accounting
information
 use of management accounting information as
a decision-making tool
 References

INTRODUCTION
Finance and funding in travel tourism sector are motivate
to people for gain information and knowledge related
to financial aspects and condition of economy as well
as company financial performance. Through this firm
has make investment plan related develop and
expansion of business activities.

Different types of management accounting
information
Superior perform management accounting so that they
are able to make appropriate decisions by recording
regular proceedings which are happening in system.
This also help them to analyse future earnings and
compare it with past record. Travel and tourism
industry uses this so that they are able to improve
their functionality by carrying out decision making
process properly.

Continued...
Financial statements: This record specify flow of cash
to purchase assets and in various operations. This
statement determine financial position of firm in
relation to their competitors and whether organisation
is able to make profit through which they can prosper
with time.

Continued...
Budget: It is defined as mechanism used to compute
finance of enterprise so that superior is able to utilise
resources efficiently. By formulating program
through which they can deal with problems that may
arise in future time.

Continued...
Management information system: This program is used
to gather appropriate data and then processing to
compile it through which administration is able to
foresee their market position. This benefit
organisation to take that activities are taking place
properly and eliminate faults.

Continued...
Financial projections: It is defined as process
management perform to analyse and evaluate
expenses which will be occurring in future time. This
help them to select options through which risk are
lowered down.

Continued...
Investment decisions: This tactics is used by executives
to encounter funds available to them through which
they are able to carry out adequate business activities.
They need to take care that resources are utilised
properly and make appropriate decision which are
advantage for company.

Use of management accounting information as a
decision-making tool
Executives applying management accounting
information in system is able to select options which
are benefit for firm. They are required to take
decisions through which described outcomes are
accomplished and adequate profit is attained.

Continued...
Financial statement depicts market share and value of
organisation so that management construct offering in
accordance to people demand. This also help them to
compare their services with rival firms.

Continued...
Executives develop budget so that they are able to
determine business activities that are to be carried
out in future time. This provide assistance to
manager to design operations through which funds
are utilised properly and adequate services are
provided to clients.

Continued...
Through management information system, superiors
collect data about their system workability. By
recording information about regular activities, they
are able to take decisions which benefit organisation.

Continued...
Financial projections advantage administration in
carrying effective decision-making process so that
funds are utilised in better way. They take care that
system is constructed by which resources are used to
provide products and services according to user's
demand.

Continued...
Superior should take care that they take funds from
appropriate sources through which they get adequate
amount of money required to carry out operations.
They even have to take care that by performing
business activities, they are able to earn sufficient
profit.

REFERENCES
Evans, N., Stonehouse, G. and Campbell, D., 2012.
Strategic management for travel and tourism. Taylor
& Francis.
Hall, C. M. and Page, S. J., 2014. The geography of
tourism and recreation: Environment, place and
space. Routledge.
Heung, V.C., Kucukusta, D. and Song, H., 2011. Medical
tourism development in Hong Kong: An assessment
of the barriers. Tourism Management.32(5). pp.995-
1005.

Thank You