Difference Between Managerial And Financial Accounting

Question 1 The main difference between managerial and financial accounting is who the end-users are. Financial accounting is concerned with producing information for external users based on historical data. External users for financial accounting would include investors, creditors, and government agencies among others. Financial accounting must also adhere to strict rules that have been put in place to monitor the financial documents that are created within it. These policies are enforced and monitored by various external agencies such as the Securities and Exchange Commission (SEC). Financial accounting information is used when making decisions regarding investments, stewardship evaluations, or regulatory measures. Managerial accounting is focused on the internal user and has no mandatory rules that it must follow. The information gathered and produced within managerial accounting does not always pertain to financial information, as the possibility to have nonfinancial information is prevalent. This type of accounting also focuses on the future, which is identified by the information being gathered, is used to make internal decisions on planning, controlling, and decision-making. Managerial accounting provides detailed information for which these decisions to be made while also maintaining a broad and multidisciplinary approach. Question 2 Three types of product costs are defined and used within managerial accounting. Direct material is a type of product cost and it can beShow MoreRelatedDifference between Financial and Managerial Accounting 637 Words   |  3 PagesThe primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do not control or run the businesses’ operations. An example of external members would be customers and shareholders of the business. On the other hand, managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to increase efficiency and effectiveness within their companyRead MoreThe Differences Between Financial And Managerial Accounting1320 Words   |  6 Pagesorganization may be a part of, accounting plays a vital role in everyday decision making. Without the field of accounting, companies and organizations would not be nearly as efficient, productive and successful as they are today. Accounting serves many purposes for an organization, whether it is financial or managerial. But, not all forms of accounting are the same. 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Every businessRead MoreEssay On The Most Valuable Things Learned1018 Words   |  5 PagesMost Valuable Things Learned Some of the most profitable things for me is that in learning about utilization and financial statements is to consider the usage for fiscal explanations to examine and getting an understanding of how the firm incorporates those offers data over Comprehension of those executions of the firm. The financial clear information very detailed analysis of an idea that will be critical similarly as it gives serious data of the shareholders in taking such choices. FurthermoreRead MoreManagerial and Financial Accounting1235 Words   |  5 Pagesï » ¿Part 1 Managerial and Financial Accounting: Key Differences Several differences exist between the above branches of accounting. To begin with, when it comes to financial accounting, the financial reports prepared are primarily utilized by external users including but not limited to regulators, creditors and stockholders (Weygandt, Kimmel and Kieso, 2009). On the other hand, managerial accounting reports are primarily meant for internal users i.e. managers and other officers of the firm. TheseRead MoreSample Resume : Managerial Accounting1411 Words   |  6 Pages MASTERS IN PROFESSIONAL ACCOUNTANCY STUDENT NAME : Shilpa Thakran STUDENT ID : 17909848 UNIT NUMBER : 530 REPORT : MANAGERIAL ACCOUNTING TUTOR NAME : CHEOW WING WONG DUE DATE : September 12, 2014 TABLE OF CONTENT INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 1.0 PRODUCT COSTING†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 1.1 JUST IN TIMERead MoreRole Of Managerial And Managerial Accounting1029 Words   |  5 PagesThe role of managerial accounting has played a significant role in the success of businesses dating as far back as the 19th century. Service and production operations during the days of the industrial revolution were not nearly as sophisticated then as they are today. The current initial purpose of managerial accounting is comparable to its purpose throughout history. Managerial accounting has historically been useful in assisting managers with the information they need to make important decisions