Question

1. What is Managerial Accounting?

2. How is Managerial Accounting different from Financial Accounting?

3. Discuss at least three (3) applications of Managerial Accounting

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4. As a manager, why is Managerial Accounting important in managerial decisions?

No plagiarism and total 400 words

Answer 1

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.

Differences between financial accounting and managerial accounting-

1. In financial accounting, preparation of financial statements is made and reported is made after such preparation which is sent to interested parties or stakeholders. Where as in managerial accounting, preparation and conducting of business transactions is focused so as to make policies and procedures for the firm.

2. The purpose of financial accounting is to provide financial information. The purpose of managerial accounting is to make analysis and take business decisions.

3. The interested parties in financial management is both internal and external stakeholders. Where as in managerial accounting, only internal management is interested.

4. In financial accounting, only financial information is used. In managerial accounting, both financial and non financial information is used.