Question

Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results.

Answer 1

True.

Managerial accounting can be identified as the process and procedures that create documents and reports to assist management in the decision-making processes of running a particular company.

It also refers to the information that managers need in order to make decision about the improvement of a particular company.

Further Explanation

Managers use managerial accounting to measure the success or failure of a business and also to determine the achievement of the business goals. In addition, managers use managerial accounting to identify whether a department is efficient or a departmental project is doing well and meeting targets and expectations.

How it differs from Financial Accounting

Managerial accounting and financial accounting can be differentiated through the followings:

1. Managerial accounting is mainly used for internal purposes, unlike financial accounting.
2. Managerial accounting focus on internal performance like departments, projects, and processes while financial accounting is focus on the business as a whole.
3. Managerial accounting is used to help managers improve business processes exactly the same way financial reporting helps investors make investment decisions.
4. In managerial accounting, managers and managerial accountants don’t have to worry about following Generally Accepted Accounting Principles (GAAP) like financial accountants do, because management reports never get issued to banks or external parties like financial reports do

LEARN MORE:

• managerial accounting brainly.com/question/10934041

KEYWORDS:

• managerial accounting
• decision-making
• financial accounting
• accountants
• department

Answer 2

Managerial accounting is indeed an activity that helps managers determine the costs of products and services, plan future activities, and compare actual to planned results. Managerial accounting also provides information for the managers within the company or organization.

EXPLANATION:

Also known as cost accounting, managerial accounting can be defined as a process of identifying, analyzing, and communicating information to managers. This information will help managers within the company or organization to make decisions following the organization’s goals.

What does managerial accounting do?

As the name suggests, managerial accounting performs all fields of accounting. This includes margin analysis, constraint analysis, capital budgeting, trend forecasting, and product costing. Several concepts and techniques are used in managerial accounting. A managerial accountant usually has to perform planning and budgeting, project decision making, and performance measurement. All information resulting from this will be delivered to the company’s managers to help him make business decisions.

How does managerial accounting differ from financial accounting?

Even though managerial accounting and financial accounting are often overlapped, these two roles are different from each other. Below here are several differences between managerial accounting and financial accounting:

• Managerial accounting is aimed to help managers within the organization to achieve its goals, while financial accounting provides information to parties outside the organization.
• Managerial accounting does not have to comply with any standards, while financial accounting has to comply with accounting standards.
• Managerial accounting provides more detailed information such as customers, profits, and geographic region, while financial accounting provides information results of an entire business.

Learn More

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• Goals in managerial accounting - brainly.com/question/4485430

• Financial accounting standard boards - brainly.com/question/3521569

Keywords

Managerial accounting, financial accounting.  

Subject: Business

Class: High School

Subchapter: Managerial Accounting