Identify some of the major differences between the fields of financial and managerial accounting. Compare and contrast these differences in terms of usefulness to managers for decision...

Identify some of the major differences between the fields of financial and managerial accounting. 

Compare and contrast these differences in terms of usefulness to managers for decision making. How do organisations cope with managers who have little knowledge of accounting?

Asked on by ibello

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sciencesolve | Teacher | (Level 3) Educator Emeritus

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You should know that managerial accounting is optional while financial accounting is required by laws, hence it is obligatory.

The target of financial accounting is the outside environment of company(authorities, tax regulators, other parts then company's owners) while the targets of managerial accounting are all departments inside company.

Notice that the financial accounting reports specifically tell about results of company's financial activities, while the managerial accounting tells about decisions regarding the future activities inside company.

Notice that the common aspect of both financial and managerial accounting is that they use the basic financial data.

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