Managerial Accounting

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DEFINITION of 'Managerial Accounting'

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 are common concepts and techniques of managerial accounting?

    The common concepts and techniques of managerial accounting are all the concepts and techniques that surround planning and ... Read Full Answer >>
  2. What are common scenarios in which managerial accounting is appropriate?

    Common scenarios in which managerial accounting is appropriate are any situations in which a company competes in a fast-paced ... Read Full Answer >>
  3. What is the difference between managerial accounting and financial accounting?

    In simple terms, managerial accounting exists to help managers make internal decisions that affect an organization, whereas ... Read Full Answer >>
  4. What does financial accounting focus on?

    The focus of financial accounting is on summarizing and reporting a business's financial position to entities outside the ... Read Full Answer >>
  5. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  6. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
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