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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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