Travel & Tourism: The Role of Finance and Funding Management

This report provides an overview of finance and funding within the travel and tourism sector, emphasizing the crucial role of management accounting. It identifies various types of management accounting information, including financial statement analysis, cost accounting, budgetary control, and standard costing, and explains how this information serves as a decision-making tool for managers. The report highlights the assistance provided by Management Information Systems (MIS) in areas such as investment decisions, trend analysis, and transactional system processing. The conclusion underscores the importance of management accounting in planning business activities, building strategies, and forecasting relationships, supported by references to relevant publications in the field.

FINANCE AND
FUNDING IN
TRAVEL AND
TOURISM
(TASK 2)

CONTENT
 Introduction
 Types of management accounting information
 Use of management accounting information as a
decision-making tool
 Conclusion
 References

INTRODUCTION
 Travel and tourism is known is one of the most leading and
growing sector. It highly contributes in improving economic
condition of a nation in an effective manner.
 In order to manage operations or working activities several
costs are incurred; this can also affect their profit earning
capacity and functionality. Thus is necessary for
management to identify different sources of funds, i.e. loans
equity funds etc.

TYPES OF MANAGEMENT
ACCOUNTING INFORMATION
Management accounting is the process of preparing
management reports and accounts that provide accurate and
timely financial and statistical information to managers to
make short-term and long-term decisions. It identifies,
measures, analyses, interprets, and communicates information
to enable an organization to pursue its goals.

CONTINUE…
Below describe various tools of management accounting that
are stated as under: -
 Financial statement analysis
 Cost accounting
 Budgetary control
 Standard costing

USE OF MANAGEMENT ACCOUNTING
INFORMATION AS A DECISION-MAKING
TOOL
A management accounting information system can
help businesses run better by providing timely
information on internal operations. Managers need to
have specific data on certain processes to control
costs and to make sound decisions.

CONTINUE…
Below is the assistance
provided by MIS:
• Investment decision
• Trend analysis
• Transactional processing
system (TPS)

CONCLUSION
 The core concept of management accounting is to plan
all activities in that manner which helps in smoothly
execution of business functions and build up strategies
for day to day tasks. Whereas management accounting
information is liable for forecasting, creates causes and
hinder relationships. Its major tools are – budgetary
control, standard costing and decision analysis.

REFERENCES
Dale, G., 2005. BTEC national travel & tourism. Heinemann.
Dwyer, L., 2007. International handbook on the economics of
tourism. Edward Elgar Publishing.
Eagles, P. F., 2002. Trends in park tourism: economics,
finance and management. Journal of sustainable tourism.
10(2). pp.132-153.