What is Managerial Accounting and Why Does It Matter?
Managerial accounting also provides useful business financial data to support internal decision making, business planning and control. Unlike financial accounting, managerial accounting is forward-thinking in helping businesses to predict, budget and optimise costs.
Managerial vs Financial Accounting
| Feature |
Managerial Accounting |
Financial Accounting |
| Users |
Internal (Managers, Executives) |
External (Investors, Regulators) |
| Focus |
Future-oriented & strategic |
Historical data & compliance |
| Regulation |
No strict standards |
Follows GAAP/IFRS |
| Reports |
Custom, detailed internal reports |
Standardized financial statements |
Common Topics in Managerial Accounting Assignments
- Cost analysis & control
- Budgeting & forecasting
- Variance analysis
- Job order & process costing
- Break-even & CVP analysis
- Overhead allocation
- Performance measurement
- Capital budgeting & investment appraisal
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