Financial Analysis of Merlin Entertainment plc: Accounting Report

This report examines the management accounting practices of Merlin Entertainment plc, focusing on how they utilize financial information for decision-making. It details the significance of cost allocation, budgeting, and forecasting in the company's financial planning. The report highlights how these tools contribute to resource optimization, strategic planning, and overall organizational effectiveness. Furthermore, it underscores the importance of financial literacy and its impact on the tourism sector. The analysis covers the allocation of funds, the development of strategic plans, and the company's approach to financial management. The report references several key sources in financial management to support the analysis.

Finance and funding in travel and
tourism
TASK 2

Different types of management accounting
information used in Merlin Entertainment plc
Various kinds of management accounting information can be expressed
as:-
Cost allocation report:- In this way, accountant of Merlin Entertainment
prepares report for cost allocation which includes determination of
pricing for tourism services.
Budget:- It includes forecasting and decision making for further
business activities on behalf of past performance of business activities.

Cntd.
 Forecasting:- In this form, manager forecasts business activities and
future trend for effective output and business operations to meet the
customer demand.
 Fund allocation:- Manager of Merlin Entertainment plc prepares plan
for fund allocation which includes sources and investment of money
related to business activity.

Importance of management accounting information as
decision making tool for Merlin Entertainments Plc
Significance of management accounting information can be understood as
follows:-
Optimum utilization of resources:- Management accounting information
includes analyses of current and past business activities.
Preparing strategic plans and forecasting further business activities:- On
behalf of recognition of tourism services, manager of the organization prepares
strategic plans and forecasts further business activities.

Cntd.
 Financial and entire development of tourism:- Merlin Entertainment
increases efficiency of the organization by applying methods for
economic development which influences other factors of tourism.
 Organization's effectiveness:- Merlin Entertainment manager prepares
strategies for tourism effectiveness.

REFERENCE
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management:
Theory & practice. Cengage Learning.
Chandra, P., 2011. Financial management. Tata McGraw-Hill
Education.
Lusardi, A. and Mitchell, O.S., 2014. The economic importance of
financial literacy: Theory and evidence. Journal of Economic
Literature. 67(1). pp.5-44.
Petty, J.W. and et.al., 2015. Financial management: Principles and
applications. Pearson Higher Education AU.

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