Difference Between Financial And Managerial Accounting

931 Words Feb 4th, 2016 4 Pages
The similarity and differences between financial and managerial accounting, Management accounting is only used for internal operations and the financial is more external which is the overall financial picture and data collected by an organization that may have accountability towards the public, IRS and partners. Both are similar functions, but one is perhaps more in depth. The Target company purpose is design the show, review the project, inputs and outputs, expenses, and review all necessary steps involved with designing the shoes. There are a number of production methods in accounting and different systems that Target Company can use. The accounting system -managerial accounting is mainly used for internal purposes. Here are some examples, the direct expenses are as follows; direct labor wages, direct labor fringed benefit, raw material, and any other direct involvement with creating the product which is the show. The overhead and non-direct expenses are non- direct labor, quality control, rent, gas, electric and the typical day to day expense such is a warehouse that requires funds toward the upkeep of the property.

For example, the direct labor is the act of paying contractors, plumbers, and various other positions directly for their service. Indirect Labor is things we can pay for that goes toward supplies for a project but not the contractors who are actually working on the project. Manufacturing overhead are the expenses that are indirectly related to the…
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