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Describe difference between financial and managerial account

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How would you describe the difference between financial and managerial accounting? What are the distinguishing features of managerial accounting?

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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. 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 ...

Solution Summary

In a 494 word cited solution, the reponse presents a clear discussion about the differences in terms of function, responsibility and risk.

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Financial versus Managerial Accounting

Financial versus Managerial Accounting

1) What is your opinion on the questions below?
It is time to explore the differences between financial and managerial accounting. Financial accounting is rule-oriented since the information is used to communicate with third parties. Managerial accounting, on the other hand is for internal use. Anything goes as long as the information is a valuable tool for decision making purposes and the benefit of the information exceeds the cost of accumulating and analyzing it.

In addition, we're moving towards understanding the basic concepts of managerial accounting.

References:
Accounting for Management. (n.d.). Difference between Financial and Managerial Accounting. Retrieved from
http://www.accountingformanagement.com/financial_accounting_vs_managerial_accounting.htm
Principlesofaccounting.com. (n.d.). Chapter 17 Multiple Choice Questions. Retrieved from http://www.principlesofaccounting.com/questions%20-%20%20multiple%20choice/chapter%2017%20-%20multiple%20choice.htm

Unknown. (n.d.). The Role of Management Accounting in the Organization. Retrieved from https://docs.google.com/viewer?a=v&q=cache:MWZE_XMqFOUJ:www.swlearning.com/accounting/albrecht/management_2e/expanded/exp_01.doc+Financial+versus+managerial+accounting%3F&hl=en&gl=us&pid=bl&srcid=ADGEESjWheQRI7nzm3i5Zmwsd3la9aWDQDy9N3RbBWiQns9ic71gNJoRxVa75E4KWSi0GthsbXrfNpSEQ_UZvr0QenNE-Ut6XU_9v6Yda0SVULodDfzIGRSb8Pf30b9I3qN0lWmUoXzZ&sig=AHIEtbRDmHJSiuRsS9v6FrbERAz9cqTPEw

Required:
Below are some questions for discussion.
How is the purpose of managerial accounting different from financial accounting?
Are more accountants involved in the financial or managerial function today?
Comment on the use of a functional versus absorption income statement. Describe the differences in presentation and use of each type of income statement.
How is the concept of cost of goods sold different than contribution margin?
Explain the contribution margin concept/computation and when to use the information.

Choose one or two relevant aspects for further investigation and share your knowledge with the class. Try to add information not previously discussed by others. Please, provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and Include references in APA format.

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