Different between financial accounting and managerial accounting.

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Answer 1

Answer #1

Answer

	Points of difference	Managerial accounting	Financial Accounting
1	Purpose	To assist in internal decision making and management	To assist in determining Net Income/Loss and Financial position of business.
2	Users of information provided	Managers, Internal management.	Stockholders, Investors, Governmenet agencies.
3	Statements prepared	Contribution income statement, Cost benefit analysis, Budgets, etc	Income Statement, Balance Sheet, Statement of Cash Flows
4	Concept used	Variable / Marginal costing	Traditional / Absorption costing.
5	Application of Accounting Standards	Not applicable	Strictly applicable
6	Concept of Opportunity Cost	Very relevant under managerial accounting	Not considered under Financial Accounting

Answer 2

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