Managerial Accounting


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."


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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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  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. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  6. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>

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