Managerial Accounting

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DEFINITION

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."

INVESTOPEDIA EXPLAINS

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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