Finance and Funding: Management Accounting Information & MIS

This report explores the role of management accounting information in facilitating effective decision-making within a business context. It covers various types of management accounting information, including financial statements, budgets, variance analysis, forecasts, and break-even analysis, explaining how each contributes to informed decision-making processes. The report further discusses how Management Information Systems (MIS) aid in making effective decisions related to trend analysis, investment, capital raising, expense control, performance measurement, solvency, and price reduction. By analyzing trends, evaluating investment opportunities, managing capital, controlling expenses, measuring performance, and ensuring solvency, companies can leverage management accounting information to achieve their objectives and maintain a competitive edge. The conclusion emphasizes the importance of sound decisions based on reliable information for overall business success.

Finance and Funding
(Task 2.1 & 2.2)

Cover content
• Introduction
• Objective
• Types of management accounting information
• Decision making by using MIS
• Conclusion
• References

Introduction
Finance is an essential need of every business to survive and
exist in competitive market world. The company can
implement an effective strategy only when they are financial
capable.

Objective
The main objective is to collect the various
information that will be used for decision
making.

Types of management accounting
information
There are different types of information which is
helpful in making an effective decision:
• Financial statements
• Budgets
• Variance analysis
• Forecasts
• Break even analysis

Financial statements
It is known as one of the most important record of the company
which consists of overall performance those are being done
by the company during the year. All those financial
transaction which is done during the time are recorded into a
well organise format by following prefect standard. Some of
the crucial statements those are use under this are balance
sheet, profit and loss statements and cash flow statements.

Budget
These are known as one of the perfect tool of planning
process which is being use by the company in order to
estimate for the future profitability. There are various
budgets those are mention under this, such as sale,
production, raw material and other operational budgets.
These would be more helpful for merlin entertainment plc
to manage there expenses and extra costs those are incur
during booking of orders.

Variance analysis
It is an essential ways to determine variation among actual
and budgets values in the travel operations. These can be
useful for the company in order to analyse the deviation
those are being carried out in accordance with the labour,
material and other overhead. According to the
performance of merlin entertainment plc, it can be
identify by their managers by using reliable process in
order to analyse current performance of the company.

Forecasts
Such kind of information is collected on the basis of total
estimation or expectations from the company's growth
and sustainability. It is based on some specific
assumption in relation with various aspects and
information which is helpful in generating proper results
for the company. All of them are associated with future
growth opportunities those are analyse with the help of
necessary information about performance of merlin
entertainment plc.

Break even analysis
It is known as contribution margin. In this an amount of
sales generated from each unit contributed in ultimate
profitability of a corporation. Under this, level of sales is
examine at which a company is making neither profit or
nor loss. It is said to be the stage in which total revenue
equals with the total costs incur by company during the
year.

Continue..
• Trend analysis
• Investment decision
• Raising of capital
• Control of expenses
• Performance
measurement
• Solvency
• Price reduction

Effective decision with the help of Trend
Analysis
The company must need to analyse the trends with the help
of available information and compare them in an effective
manner which help in making an effective decision. It
will be clearly identified that whether there is upward or
downward and then accordingly implement corrective
actions which brings positive result to company.

Investment decision
With the help of information the company can able to know
about its accurate financial position and accordingly
invest the amount of money in such important areas
where they can earn huge amount in return which help
them in achieving growth and success.

Raising of capital
Using available information the company can identify the
requirements of funds after which they should make an
effective decision relating to raising funds from different
sources. Internal and external sources are such through
which company can raise funds.

Control of expenses
With the help of budget the company need to focus on
controlling and managing their expenses incurred in
business activities. The manager must need to allot
certain amount of money on the basis of the outcome they
will receive in future. Thus it is important to categorise
the business activities on the basis of their results and
accordingly incurred expenditure in them.

Performance measure:
The variances calculated by Merlin Entertainment help them
in measuring their overall performance. Thus will help
company in identifying the areas in which their
performance is poor and accordingly implement
corrective decision in order to rectify them in an effective
manner.

Solvency
With the help of management operations the company can
able to know its actual position in competitive market
world. Thus it will help company in future challenges and
risk that may comes in near future which can affect its
stable position. It also help in competing their rivals in an
effective and efficient manner.

Reduction of price
Through break even analysis the company can able to
identify that at which level of production they should stop
their production process which can meet the needs and
requirements of customers. The company also need to
analyse the demand and supply situation and accordingly
fix the price of their products and services. For example if
demand of particular product is increases then they
should increase the price of their products and services
they offered and vice-versa.

Conclusion
It can be concluded that better decisions will be
made with the help of management accounting
information and company will achieve its
objectives.

References
Standing, C., Tang-Taye, J.P. and Boyer, M., 2014. The impact of
the Internet in travel and tourism: A research review 2001–
2010. Journal of Travel & Tourism Marketing. 31(1). pp.82-
113.
Glover, P., 2011. International students: Linking education and
travel. Journal of Travel & Tourism Marketing. 28(2). pp.180-
195.
Irudeen, R. and Samaraweera, S., 2013, December. Big data
solution for Sri Lankan development: A case study from travel
and tourism. In Advances in ICT for Emerging Regions
(ICTer), 2013 International Conference on (pp. 207-216).
IEEE.

THANK YOU