Analyzing Management Accounting Information in Finance & Funding

This report delves into the realm of management accounting information, elucidating its types, uses, and pivotal role in facilitating informed decision-making within organizations like Merlin Entertainment. It highlights how management accounting, encompassing costing, budgeting, and various accounting tools, provides industry-specific insights for cost control and strategic decision-making. The report emphasizes the significance of financial statements in assessing a company's financial health, forecasting future outcomes based on past performance, and preparing budgets for diverse organizational activities. Furthermore, it explores how management accounting systems, often software-based, deliver financial information in a computerized format, empowering management to make sound economic decisions. By leveraging management accounting tools, organizations can identify operational loopholes, forecast future outcomes, conduct tax planning, and maintain systematic records, ultimately contributing to the achievement of organizational goals and objectives. Desklib provides access to similar solved assignments and study tools for students.

FINANCE AND
FUNDING
TASK 2

P2.1 management accounting information its
types and uses
Management accounting information can help the Merlin entertainment in smooth running of its business by
providing necessary information to the management. Basically management accounting information is a
management tool that involves costing, budgeting and accounting tools.
• Management accounting information provides information according to the each kind of industry.
• This helps the management in controlling the cost and making decisions.
• Costing and budgeting techniques will help Merlin Entertainment in identifying their actual cost.
• Accounting tools will help the management in determining the profitability of merlin entertainment.

Financial statements
• Management accounting facilitates information regarding the
income statement, statement of financial position and growth
of the company.
• Statement of income provides the information regarding
overall expenses and overall incomes of the company.
• Financial statements includes statement of cash flow that
provides information about inflow and outflow of cash from
the organisation.
• .

Forecasting
• On the basis of past year performances, current year results are forecasted
by the management well in advance.
• It attempts to predict the future outcomes and results on the basis of events
that have occurred in past and with the insight of management.
• Forecasting will help Merlin entertainment in planning the future events,
budgeting the resources along with the estimation of future growth.
• It involves application of Mathematical, scientific and statistical techniques
to get more reliable results than the forecasting through personal
observation and using of ordinary tools.

Budgets
• Post analysis of financial statements, management of
merlin entertainment can prepare budgeted reports.
• These budgeted reports will provide the information
regarding, the future budgets for various activities of
the organisation.
• These budgets for various activities may be flexible
or fixed according to the requirement of the
organisation.

Management accounting system
• Management accounting system is software
based that provides financial information in
computerised form.
• Management accounting system are developed
internally in such a way that they provide
information to the management in making
good economic decisions.

P2.2 Management accounting information in
Decision making
The main objective of management accounting
information is to facilitate the decision making
in the organisation like Merlin
entertainment.For facilitating the decision
making, management accounting tool will
provide the necessary information to the
management of Merlin entertainment.

Various tools for decision making
• With the help of this information, management will be able to
know the current financial position of Merlin entertainment.
• This information will enable the management in knowing,
where the company is lacking behind.
• The loopholes in the operations of the company and
management will be easy identifiable.
• The information will allow the management in forecasting the
future outcomes, for which this will enable the planning.

Various uses to Decision Making
•Forecasting future outcomes will enable the management in making fixed or
flexible budgets regarding various activities of Merlin entertainment.
•This will also enable the management in knowing advance tax liability of the
company, management can conduct tax planning accordingly.
•Management accounting information will also help the management in
knowing the liquidity and profitability of the organisation.
•Management will be able to know what past decision have helped the
company in growing and what decision have made a negative impact to the
company.

Various uses to Decision Making
•This will also help management in maintaining the
systematic records of the company.
•Based on the past evaluation, management will be
enable to take better future decisions that will help
merlin entertainment in achieving its organisational
mission, vision, goals and objectives.

REFERENCES
Brigham, E. F. and Houston, J. F., 2012. Fundamentals of
financial management. Cengage Learning.
Deegan, C., 2013. Financial accounting theory. McGraw-Hill
Education Australia.
Kim, J. and Krishnan, R., 2009. Novel two-switch-based
switched reluctance motor drive for low-cost high-volume
applications. IEEE Transactions on industry applications.
45(4). pp.1241-1248.