Essay On Managerial Accounting

593 Words2 Pages

Definition of ‘Managerial Accounting’ : The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization’s goals. The key difference between managerial and financial accounting is that managerial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at proving information to parties outside the organization. Managerial accounting is concerned with providing information to managers – that is, the those who are inside an organization and who direct and control its operation. Managerial accounting can be contrasted with financial accounting, which is concerned with providing information to stockholders, creditors and others who are outside an organization (Garrison and Noreen, 1999). Managerial accounting information includes: 1): Information on the costs of an organization’s produce and services. For Example, managers can use product costs to guide the setting of selling ...

Open Document