Management Accounting Information as a Decision-Making Tool Report

This report delves into the pivotal role of management accounting information as a decision-making tool within organizations. It outlines various types of management accounting, including financial statements (Cash Flow Statement, Income Statement, and Balance Sheet), variance analysis, budgets, and forecasts. The report emphasizes the significance of a Management Information System (MIS) in generating and communicating information from both external and internal sources to facilitate effective decision-making at strategic, operational, and tactical levels. It also identifies software, such as ICT and DSS, used by companies like Dalata Hotel Group Plc, and explores forecasting methods, including cash flow, balance sheet, and profit and loss forecasts, used in setting prices and making informed decisions.

Management Accounting Information as a
Decision-Making Tool

Table Of Contents
• Types of management accounting
• Financial statement
• Budget
• Management information system
• Software used by the company
• Decision making tools
• Forecasting
• Setting price
• References

Types of Management Accounting
• Management accounting helps in decision
making which consists of following types:
• Financial Statements
• Variance Analysis
• Budgets
• Forecasts
• MIS

Financial Statement
• To determine the performance and position of
the company, the financial statements are
prepared which includes:
• Cash flow position by Cash Flow Statement
• Performance by Income Statement
• Financial position by Statement of Financial
Position

Balance Sheet

Income Statement

Cash Flow Statement

Budget

Management Information System
• Information is generated from external and
internal sources.
• Helps in communicating to managers the
information.
• Effective decisions taken for controlling, planning
and directing the activities.
• Interconnected system used for acquisition,
movement, control, management, storage,
transmission, etc.

Software used by the Company
• The company Dalata Hotel Group Plc. is using
two types of software which are as follows:
• ICT Software
• DSS Software

Decision-Making Tools
• Tools which can be used in decision making at
all levels of the company.
• There are three levels of management
decisions which are required to be taken and
they are as follows:
• Strategic
• Operational
• Tactical

Forecasting
• Predict the future with the normal
circumstances.
• There are various kinds of forecasts which are
prepared:
• Cash flow forecast which estimates the receipts and
payments in future.
• Balance sheet forecast prepared with the estimations
of the items in the balance sheet.
• Profit and loss forecast which will predict the gain or
loss in future for the company.