Question

1. Why is managerial accounting important?

2. How can you use managerial accounting in real world/life?

(can be opinion based)

Answer 1

Why is managerial accounting important?

Managerial Accounting involves numbers for the Decision making . It is mostly prepared by management Accountants and used by the managers and other personnel.

Decision making (especially operating decisions) is most important in case of success in any organization. Managers make plans (both Long Term and short term) . these plans need to be arranged it into a readable and understandable form with use of numbers , graphs e.t.c such as Budgets are prepared using Managerial Accounting.

How can you use managerial accounting in real world/life?

Uses of Managerial Accounting :

In business - We use it as a decision making tool such as Budgets , Forecasts , Make or Buy decisions , Variance analysis , cash flow analysis , vendors management e.t.c.

Management Accounting increases the efficiency of decision making of managers. It aids in operating efficiency of the organization as a whole.