Purchase Solution

Managerial versus Financial Accounting

Not what you're looking for?

Ask Custom Question

Prepare a paper in which you differentiate between managerial and financial accounting. Be sure to address the following questions:

1. What type of information does managerial accounting provide?
2. What type of information does financial accounting provide?
3. Who are the users of managerial and financial accounting, and what kind of business decisions would they make with this information?

Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

Purchase this Solution

Solution Summary

The 739-word cited solution presents a comprehensive response to each of the questions about the types and uses of information produced in managerial versus financial accounting. Included is a six point listing summarizing the major differences in uses of financial and management accounting.

Solution Preview

Managerial or cost accounting is an internal function which allows management and operations people to judge the efficiency and effectiveness of their departments or operations. Although often associated with manufacturing or process costing, cost accounting can be used in most any business.

The real benefits of cost accounting are cost savings. It is impossible to evaluate costs without the detailed information about the nature and classification of the costs. The job of the cost accountant is to categorize costs by some internal reporting process which will provide managerial information to judge internal functions. It is a process which subdivides total costs by function, process or department. In this view, cost accounting is a detailed breakdown of total costs into categories which are important or necessary for a company to understand and evaluate itself.

Management accounting: cost accounting -- a branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs and analyzing their behaviors. Cost accounting is frequently used to facilitate internal decision making and provides tools with which management can appraise performance and control costs of doing ...

Purchase this Solution

Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.


This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.


This tests some key elements of major motivation theories.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.