Management Accounting Information

Merlin Entertainments Plc

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 Table of contents

Introduction
Management Accounting
Types of management accounting information
Management accounting as a tool of decision
making
Comparison with trend
Forecasting
New product and service
Investment decision
Conclusion
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References
 Introduction

Travel and tourism sector is the fastest growing industry
in the service sector throughout the world. With the ease
of transportation, the growth rate of travel and tourism
business is increasing rapidly. With this the scope of
finance and funding requirements and their application is
also increasing. The sources of funds, investment in capital
projects etc. are the crucial decisions for any travel and
tourism business. The application of these methods and
analysis and interpretation of financial statements and
accounting information is included in this report.

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Management Accounting

Management accounting
provides the manager with the
accounting information in order
to make better decision within
the organization and helps them
in building control. It involves
preparing reports and accounts
that provide accurate and timely
financial and statistical
information to business owner
in decision making. The manager
uses accounting information to
build policies for the company.

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Types of management accounting
information

Budget repot
Financial
statement
Variance analyze
Job cost report

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 Contd.

Budget Report - The budget is a tool used by the management to
control the cost of the production. Budget provides with a roadmap and
the set of activity required to attain organization goals. The manager
can use it as a tool to compare the performance of the activity with the
budget to study the variance and take corrective action.
Financial Statements - The manager of Merlin enterprise can use to
financial statement for the purpose of making informed decision for
the company on the basis of accounting information. The manager will
use the financial statement to perform financial analyze for the
purpose of decision making. The manager of Merlin entertainment
company can make the decision on the area where future investment
can be made on the basis of analyzing of financial information.

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 Contd.

Variance Analysis - The management of Merlin
Entertainment can use the variance analyze to compute
the variation of actual outcome from the targeted
outcome. The manager should examine the reason of
variance and take appropriate measures to control. The
management should consider these variance while
preparing future budget.
Job cost report - The manager of Merlin Entertainment
can use the job cost report to show the expenses and
check the profitability of all the project. With the help of
job cost report the manager can find unit which is making
higher profit and the unit which are incurring loss.

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Management accounting as a tool for
decision making

Comparison with the trend
Forecasting sales
New product and service
Investment decision

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 Comparison with the Trend

The management of Merlin entertainment can
analyze
the trend by comparing the performance of
various
year and make the future decision and plan on
the basis
of those trends.

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Forecasting

The manager of Merlin Entertainment company
can
determine the future demand of the product on
the
basis of analyzing the past data. The forecasting
should
be done which helps in attaining company vision
and
objective.

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 New product and service

The Manager of Merlin Entertainment
company can use the accounting information
and can take a informed decision on bringing
new product.

The management should study the current

structure of the business and based on it
should introduce new product or service.

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 Investment decision

The Merlin Entertainment company can decide
the area
where investment should be made for the future
expansion of business. Through the use of
accounting
information the manager can make the
estimation of
cost and return from the new investment.

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 Conclusion

It can be concluded that accounting information
helps
The manager in making the informed decision
related to
the business. The management can use the
information
to create future business policies and goals for the
company. It also helps in building coordination
between
the different activity of the organization.
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 References

Wu, C.H., Ho, G.T.S., Lam, C.H.Y., Ip, W.H., Choy, K.L. &
Tse, Y.K. 2016, "An online niche-market tour
identification system for the travel and tourism
industry", Internet Research, vol. 26, no. 1, pp. 167-
185.
Chang, K. 2015, "How travel agency reputation creates
recommendation behavior", Industrial Management &
Data Systems, vol. 115, no. 2, pp. 332-352.
Lozano, J., Arbul, I. & Rey-Maquieira, J. 2016, "The
Greening Role of Tour Operators", Environmental
Management, vol. 57, no. 1, pp. 49-61.

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