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."

INVESTOPEDIA EXPLAINS '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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    Common scenarios in which managerial accounting is appropriate are any situations in which a company competes in a fast-paced ... Read Full Answer >>
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