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“Management accounting should not fit the straitjacket of financial accounting.” Explain and givean example.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 8Q: What are the key differences between financial accounting and managerial accounting?

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“Management accounting should not fit the straitjacket of financial accounting.” Explain and give
an example.

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Similar questions

Is there a way to prevent managers from focusing on accounting measures as performance measures?
Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.
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How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?
What are the key differences between financial accounting and managerial accounting?
Explain how management accounting should not fit the straitjacket of financial accounting.
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