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.