Management Accounting Decision-Making Tools in Travel and Tourism

Desklib provides past papers and solved assignments for students. This report analyzes management accounting tools for tourism.

AS D E C I S IO N MAK IN G T O OL S I N
T R AVE L AN D T OU R I S M S E C T OR
Management Accounting

Table of Content
 Introduction
 Management Accounting Information
 Different types of management accounting system
 Budgets
 Variance analysis
Decision Making Tools in Management Accounting
 Ratio Analysis
 Forecasting
 Advantages of Decision making Tools
 Conclusion
 References

INTRODUCTION
The report will explain the importance of
the management accounting in the company
Fulham Shore Plc.
The financial statements of the company
will be explained.
Management accounting helps in taking the
relevant decisions and provides the useful
information to the company.

Management Accounting Information
Helps in increasing the revenue and decreasing the
cost.
It includes both the factors financial and non
financial.
It help in giving the appropriate decisions and also
helps in achieving the gaols and targets of the
company.

Different types of management accounting system
A. Financial statements
B. Budgets
C. Variance analysis
D. MIS
E. Forecast

Budgets
It is the predetermined cost
of the company.
It helps in estimating the
expenses and the revenues
of the company.
It helps in making the plans
for the uncertain future.

Balance sheet of the Fulham Shore plc.
• The balance sheet of the
company includes the
information about the
company’s asset and the
liabilities.
• It also gives the
information about the
company’s equity and the
debt through which the
financial performance of
the company can be
evaluated.

Income statementof the Fulham Shore plc.
• The income
statement of the
company shows the
profit and loss of the
company.
• It also indicates the
revenues and the
expenses of the
company. of the
company shows

Cash Flow statement
The cash flow statement of the
company shows the inflow and the
outflow of the cash.
In this three activities are
represented such as the operating,
investing and financing activity.
At the end of the year the company
has the cash equivalent of the £359.

Decision Making Tools in Management Accounting
Forecasting
Investment
Raising capital
Ratios
Comparison with the trends

Ratio analysis
Solvency ratio
Liquidity ratio
Gearing ratio
Profitability ratio
Activity ratio
Performance ratio
Inventory ratio

Advantages of Decision making Tools
It increases the profit of the company as
with the effective decision making tools the
sales and the productivity can also be
increased.
It helps in providing the useful information
through which the performance can also be
evaluated.