Major Difference Between Managerial and Financial Accounting
Have you ever surprised what the dissimilarities are between managerial and financial accounting? Accounting comprises areas such as audit, cost, tax and information systems. Nevertheless, the merely area in accounting that relates to this article is cost, for the reason that cost is a subset of managerial accounting. Some of the main differences between managerial and financial accounting include but aren't limited to GAAP, internal/external focus, internal/external reporting, and unit focus. The initial topic that I would like to discuss is the difference between managerial and financial accounting through GAAP (Generally Accepted Accounting Principles). A firm should follow GAAP down to the tee nevertheless with managerial accounting there are ways around it, for the reason that managerial accounting doesn't have to worry about following GAAP standards. One of the major points in managerial accounting is cost accounting, as well as the point of cost accounting is to help