Report on Finance and Funding Management in Travel and Tourism

This report provides an analysis of finance and funding within the travel and tourism sector, focusing on management accounting information tools, cost identification, and budgeting. It explores the use of these tools in decision-making, including cost reduction tactics and competitive advantage strategies. The report also assesses market patterns, forecasting analysis tools, and investment appraisal methods for evaluating business proposals and enhancing business efficiency. Key areas covered include predicting future costs, prioritizing expenses, forecasting, and leveraging globalization opportunities. References are provided to support the analysis and findings presented in the report, offering a comprehensive overview of financial management in the travel and tourism industry. Desklib provides access to this document and other resources for students.

FINANCE AND FUNDING IN
TRAVEL AND TOURISM SECTOR

TASK 2

2.1 Management accounting
information tools
 Predicting future cost
 Prioritization of expenses
 Forecasting hidden and renowned
expenses
 Reducing burden of taxation
 Enhancing current business efficiency

4
Cost identification
 Variable cost
 Fixed cost
 Semi fixed cost
 Stepped fixed cost
 Nature wise cost determination
 Travel related costs
 Visa and ticketing services

5
Budgeting
 Important weapon of management
 Helps in forecasting future income and
expenses
 Improves current variables used in an
enterprise
 Helps in making good business
decisions

6
2.2 Use of management
accounting tools in decision
making
 Reducing cost by using tactics
 Informing financial related information
 Helps in getting competitive advantage
 Able to decide selecting or rejecting
business proposal
 Beating wide number of competitors

7
Market Patterns
 Assessing Industry styles of travel and
tourism sector
 Changes incorporated as per external
market
 Taking advantage of globalization
 Seeking external opportunities
 Recognizing the brand image of an
entity
 Benefitting from FDI

8
Predicting
 Forecasting analysis tools used in
ascertaining business performance
 Major application of business analytics
 Statistical tools like regression and trend
analysis
 Analyzing cash position of an entity
 Reducing the future impact of expenses
on the current entity

9
Investment appraisal
 Assessing the viability of business
proposal
 Good source of decision making
assessing the feasibility of project
 Taking decision on selecting or rejecting
a business project
 Using various projects in assessing
business efficiency

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REFERENCES
 Finch, M. A., Goff, P. and Houck, E., 2016. Opting Out of the Bill:
Voluntary Adequacy Funding in Maryland. Journal of Education
Finance. 42(1). pp.28-48.
 Ezeanata Walter, C. and Parimoo, D., 2016. Leadership
Development In The Nigerian Micro Finance Banks And Its
Effects On The Banks Performances.Leadership. 1(2), pp.15-24.
 Wong, G., Angelsen, A., Brockhaus, M., Carmenta, R., Duchelle,
A., Leonard, S., Luttrell, C., Martius, C. and Wunder, S., 2016.
Results-based payments for REDD+: Lessons on finance,
performance, and non-carbon benefits (Vol. 138). CIFOR.
 Khan, M. A., Sajid, M. A., Waseem, M. A. and Shehzad, M. W.,
2016. Capital Structure Composition Demeanour towards
Corporate Financial Performance Potential. International Journal
of Innovation and Applied Studies. 14(1). p.210.
 Benson, E. D. and Marks, B. R., 2016. Does the Level of Funding
of City Government Pension Liabilities Affect Tax-Exempt Bond
Insurance Premiums and Credit Ratings?. Municipal Finance
Journal. 37(1).

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