BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

Solutions

Chapter
Section
Chapter 1, Problem 1DQ
Textbook Problem

What are the major differences between managerial accounting and financial accounting?

Expert Solution
To determine

Indicate the major difference between financial accounting and managerial accounting.

Explanation of Solution

Financial accounting: Financial accounting is the process of recording, summarizing, and reporting all the transactions in the financial statement of the business over a period of time. The financial statement consists of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information which are designed to meet the goals of the organization.

The major difference between financial accounting and managerial accounting are as follows:

  • Financial accounting is reported in the financial statement that is useful to external users as well as to the company management. Managerial accounting is only used by the management.
  • Financial accounting information is objective in nature whereas the managerial accounting information is both objective and subjective in nature.
  • Financial accounting guidelines are prepared according to GAAP guidelines. Managerial accounting guidelines are prepared according to the management needs.
  • Financial accounting reports are prepared at fixed intervals and the managerial accounting are prepared at fixed intervals and on the basis of the requirement.
  • In financial accounting, the financial statement is reported for the whole company whereas in the managerial accounting, the reports are reported either for whole company or for each segment.

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Chapter 1 Solutions

Managerial Accounting
Ch. 1 - Management process Three phases of the management...Ch. 1 - Direct materials, direct labor, and factory...Ch. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Which of the following items are properly...Ch. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Hilton Hotels and Marriott International:...Ch. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Occupancy for a Hospital The Valley Hospital...Ch. 1 - Passenger load on a flight Eastern Skies Airlines...Ch. 1 - Ethics in Action Avett Manufacturing Company...Ch. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - A review of Plunkett Corporations accounting...Ch. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...

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