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Business

Accounting

What is the difference between the intended users of financial and managerial accounting information?

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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Should a managerial accounting system provide both financial and nonfinancial information? Explain.
How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?
What is the purpose of management accounting?
Who are the primary users of the information gathered by managerial accountants?
Which of the following groups would have access to managerial accounting information? A. bankers B. investors C. competitors of the business D. managers
Management accounting: emphasizes special-purpose information relates to the company as a whole is limited to strictly cost figures is controlled by GAAP
Managerial accounting produces information: to meet the needs of external users that is often focused on the future to meet the needs of investors that follows the rules of GAAP
Explain how managerial accountants help managers plan, control, and evaluate.
An effective managerial accounting system should track information about an organizations activities in which of the following areas? a. Development b. Marketing c. Production d. Design e. All of these.