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Definition and basic concepts of managerial accounting

1. What is managerial accounting and what are the differences between managerial accounting and financial accounting?

2. What are the main functions of managerial accounting?

3. Why do management accountants should understand their company strategy?

4. Why is managerial accounting relevant to business majors and their future careers?

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1. What is managerial accounting and what are the differences between managerial accounting and financial accounting?

First of all managerial accounting is concerned with providing information to managers, executives etc. for use within the company/organization. It is really rare to find an individual within a company with the title of "management accountant." Many people in the organization play a role in this process. On the other hand, financial accounting is related to reporting financial information to external parties like creditors, stakeholders, regulators etc... Managerial accounting focus on decisions affecting the future, relevance, timeliness, and segment performance but financial accounting emphasizes the ...

Solution Summary

Managerial accounting is defined and compared to financial accounting. Managerial acccounting's main functions and its relation to company strategy, business majors and their future careers are explained.

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