Managerial Accounting

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What is 'Managerial Accounting'

Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.

This is also known as "cost accounting."

BREAKING DOWN 'Managerial Accounting'

The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization.

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RELATED FAQS
  1. What is the difference between managerial accounting and financial accounting?

    Discover the differences between managerial accounting and financial accounting. Both work in tandem to make the business ... Read Answer >>
  2. What are common scenarios in which managerial accounting is appropriate?

    Understand the difference between managerial accounting and financial accounting. Learn common scenarios in which managerial ... Read Answer >>
  3. How does financial accounting differ from managerial accounting?

    Learn about the main differences between financial accounting and managerial accounting, including why one is highly uniform ... Read Answer >>
  4. How does financial accounting help decision making?

    Read a brief overview of some areas where financial accounting helps in decision making for investors, lending institutions ... Read Answer >>
  5. What are the main advantages and disadvantages to the cost accounting method?

    Read a brief overview of the main advantages and disadvantages of the cost accounting method as it relates to business analysis ... Read Answer >>
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