Question

In: Accounting

Based on your internet research, what are the key differences between managerial and financial accounting? How...

Based on your internet research, what are the key differences between managerial and financial accounting? How is managerial accounting used in corporate decision making? Please cite specific sources from your research.

Solutions

Expert Solution

Difference in managerial and financial accountant:-

  1. Financial accounting is used for presenting financial condition of the organisation to external stakeholders whereas managerial accounting is used for providing information for internal use of the company.
  2. It is legally mandatory to prepare financial accounting reports whereas maintaining management accounting reports may or may not be legally required.
  3. Financial accounting is governed by accounting standards such as IFRS or GAAP whereas there are no such binding standards for management accounting

margerial accounting used in corporate decision making

Managerial accounting information is used by managers to make decisions for day to day operations of the organization etc.

Managerial accounting information is used to identify costs involved in different business processes, evaluate available options and take decisions using several costing techniques like activity based costing, standard costing, variance analysis, relevant cost analysis.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

List seven key differences between Managerial Accounting and Financial Accounting.
List seven key differences between Managerial Accounting and Financial Accounting.
What are some of the differences between financial and managerial accounting?
What are some of the differences between financial and managerial accounting?
Briefly identify some key differences between managerial accounting and financial accounting. Make sure to address the...
Briefly identify some key differences between managerial accounting and financial accounting. Make sure to address the following points in your answer: Users of the information Decisions being made Constraints/Rules Any other pertinent information
How does managerial accounting differ from financial accounting? Discuss key differences in the users of the...
How does managerial accounting differ from financial accounting? Discuss key differences in the users of the information and what the information is used for. Why is it important that one of these use GAAP and the other is not required to, and in fact may be less useful if it tries to stick to GAAP requirements – like full absorption vs. variable costing?
Describe the main differences between financial accounting and managerial accounting, and the differences between accrual and...
Describe the main differences between financial accounting and managerial accounting, and the differences between accrual and cash accounting.
Describe the main differences between financial accounting and managerial accounting, and the differences between accrual and...
Describe the main differences between financial accounting and managerial accounting, and the differences between accrual and cash accounting.
1A. •Define Financial and Managerial Accounting •Discuss the differences between Financial and Managerial Accounting•Discuss the possible...
1A. •Define Financial and Managerial Accounting •Discuss the differences between Financial and Managerial Accounting•Discuss the possible uses of and benefits of Managerial Accounting information in a specific company, or business type you choose OR in a business you would start yourself• Also include a description of the possible beneficiaries of this type of accounting information, and the difference it could make in the business you choose
There are numerous differences between financial accounting and managerial accounting. Describe what you think are the...
There are numerous differences between financial accounting and managerial accounting. Describe what you think are the most important differences and articulate what is the critical reason regarding why those differences exist. In particular, discuss why it may not be as important to protect users of managerial accounting information, compared with users of financial accounting information.
We are studying the differences of managerial and financial accounting. Who are the key users of...
We are studying the differences of managerial and financial accounting. Who are the key users of the managerial accounting reports.. Prepared for the internal users? All, Provide examples of internal accounting reports that might be used.
One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is...
One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? Should external users always have the same information as internal users?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT