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Differentiate between managerial, and financial accounting

Mark, recognizing that he needs a team of astute financial experts knowledgeable in performing in-depth financial analyses, has asked you to head up this highly skilled team. Your background demonstrates extensive experience as a financial analyst in the manufacturing sector. You are knowledgeable about reengineering and process improvements. One of your favorite books is The Goal, by Eliyahu Goldratt and Jeff Cox (1984).

As his key advisor and team leader, your first task is to help in the selection of the financial experts needed for the project. Since Mark is an engineer by discipline, he has asked you to differentiate and contrast between general financial accounting, cost accounting, and managerial accounting relative to finance. This information will help in selecting the best team.

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Financial Accounting is an art of recording, summarizing and interpreting the financial transactions of an organization. It provides us the financial statements such as balance sheet, income statement and cash flow statement.

Cost accounting deals with ascertaining costs of a particular activity or product. It gives the internal reports relating to the costing of the product/process/activity.

Management accounting provides ...

Solution Summary

Response discusses the Differentiate between general, cost, managerial, and financial accounting.