Role of Managerial Accounting in Forecasting, Decision Making and Performance Evaluation

This presentation discusses the importance of managerial accounting in providing accurate and timely financial and non-financial information to managers for decision making. It highlights the role of managerial accounting in forecasting, decision making, and performance evaluation. The presentation also includes a case study on Abu Dhabi National Takful Company and RAK Properties to understand how managers rely on managerial reports for making organizational policies and decisions.

MANAGERIAL ACCOUNTING
Role of managerial accounting

INTRODUCTION
 Management accounting is a process which
helps the business to prepare the managerial
reports and the accounts in order to offer the
accurate and timely statistic and financial
information to administrators.
 This information is used by the managers to
make various short term and long term
decisions for the betterment of the
organization.

ROLE OF MANAGERIAL ACCOUNTING
Managerial accounting helps an organization in
various ways. The main role of managerial
accounting in an organization is as follows:
 Assist the business in forecasting the future
 Help the business to take decision about make or buy
 Forecast the cash flows

FINANCIAL AND NON FINANCIAL
PERFORMANCE
 There are various management decisions in an
organization which could be affected because of
the overall financial and non financial
performance of an organization.
 Financial information is the information which
could easily be expressed in terms of figures and
monetary terms such as the total sales, total
expenses of the business, production cost, land
and building values etc.
 whereas, the non financial information could e
not be expressed in terms of figure an dollar
values but affect a lot on the overall progress of
the business. The non financial information of an
organization includes environmental effects,
social responsibilities, political situation etc.

MANAGERS RELY ON MANAGERIAL
REPORTS
 In order to identify the perspective and
reaction of the managers on the managerial
reports and financial and non financial
performance, two UAE organizations have
been taken into the concern which are Abu
Dhabi national Takful Company and RAK
properties.
 Revenue improvement case
 Investment in new project

RESULT
 On the basis of the study on Abu Dhabi
national Takful Company and RAK properties
it has been found that both the companies
and their managers are taking the concern of
financial and non financial information both
to make the organizational policies and reach
over a conclusion about the various decisions
of the company
 Both the companies have been succeed to
meet the main goal of the business because
of the financial and non financial
performance consideration.

CONCLUSION
 To conclude, it has been found that the
financial and non financial, both the
information play crucial role in an
organization.
 Ignorance of any information (whether its
financial or non financial) could affect the
overall performance at huge level.
 So, it is concluded and recommended to the
managers to do not rely on any of the
financial and non financial information as
whole.

REFERENCES
 Annual reports. (2017). RAK properties. (online).
Retrieved from:
https://rakproperties.net/wp-content/uploads/2018/
09/2017-Annual-report.pdf
 Annual report. (2017). Abu Dhabi national takaful
company. (online). Retrieved from:
https://takaful.ae/wp-content/uploads/2018/03/Ann
ual-Report-2017.pdf
 Garrison, R. H., Noreen, E. W., Brewer, P. C., &
McGowan, A. (2010). Managerial
accounting. Issues in Accounting Education, 25(4),
792-793.
 Zimmerman, J. L., & Yahya-Zadeh, M. (2011).
Accounting for decision making and control. Issues
in Accounting Education, 26(1), 258-259.