Management Accounting as Decision-Making Tools in Travel and Tourism

Desklib provides past papers and solved assignments for students. This presentation explores management accounting in travel and tourism.

MANAGEMENT
ACCOUNTING
As Decision making tools in travel and tourism Sector

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
 Management accounting tool is very important
for the company as it gives the relevant
information about the financial statements.
 In this presentation different management
accounting tools will be explained which will
helps in taking the useful decisions.
 Different decisions making tools are also
explained which helps in taking the effective
decisions in the Fulham Shore plc.

Management Accounting
Information
 Helps in planning, measuring, designing and
operating the functions of the company.
 It includes both the factors financial and non
financial.
 It help in giving the accurate information on
time by preparing and managing the reports 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 contains the financial
proposal of the company
and helps in estimating the
future sales, production
and expenses.

Variance analysis
 It helps in finding the deviations of the
financial performance by doing the
comparison with the actual results and
the expected results.
 It helps in controlling the operational
performance of the company.

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

Forecasting
 Effective tool in taking the useful
decision.
 Gives information about the future
course of event.
 Predictions are made for the future period
from the past data

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

Advantages of Decision making
Tools
 This tools helps in increasing the sales
and productivity which also results in
increasing the profit of the company.
 This tool provides the relevant
information which is useful in taking the
decisions.
 This tools provides the financial
information about the company which
helps in evaluating the performance.

Conclusion
 It is concluded that management
accounting plays the essential role
in the company.
 It helps in taking the relevant
decisions and also provides the
useful information.
 It gives the information about the
financial and non financial aspects
of the company.