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Difference between financial and managerial accounting.

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What is the difference between financial and managerial accounting?

a. What type of information does managerial accounting provide?

b. What type of information does financial accounting provide?

c. Who are the users of managerial and financial accounting, and what kind of business decisions would they make with this information?

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a. What type of information does managerial accounting provide?

Management accounting is providing information, which is helpful in monitoring and evaluating management performance. The information mainly pertains to the performance of the divisions/sub-units of business. Its very detailed in nature and goes beyond bookkeeping. This figure can be used to make advantageous decisions concerning rates, prices, effect on operating costs and profits. Break-even analysis is especially useful when considering volume and plant expansion. If the firm is to avoid losses, its sales must cover ...

Solution Summary

With about 370 words with references, the type of information managerial accounting and financial accounting provides is given, along with who uses these types of accounting and what kinds of decisions can be made with this information. Lastly, the major differences between the two forms of accounting is given.

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Sparklin Automotive: Explain differences between financial and managerial accounting

You have recently hired a new assistant, Sally Jones, who previously worked in a financial accounting office preparing journal entries and financial statements. While your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting.

Assignment:

In a memo to your new assistant, Sally Jones, explain to her the similarities and differences between financial and managerial accounting. Provide examples of managerial accounting reports she could expect to see within SAC, and explain how management might use the information to make decisions.

Scenario:

The Sparklin Automotive Company (SAC) has been in business since 1930. It began business in the United States supplying spark plugs to automotive manufacturers (OEM, the original equipment market) and the automotive aftermarket.

SAC has introduced a new spark plug manufacturing process in the United States that produces a higher quality spark plug guaranteed to last 100,000 miles. The introduction of this spark plug has been very successful in the United States.

In addition to these types of projects, your responsibilities include creating and analyzing the monthly performance of each plant and consolidating the results into a set of financial statements footnoted with explanations.

APA Format, 3 to 4 references.

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