Difference between managerial accounting and financial accounting

Difference between managerial accounting and financial accounting

Introduction

Accounting is one of the most important functions of a business. A business must keep accounting records so that the business can operate efficiently and effectively. Accounting can be classified in to various types such as financial accounting, cost accounting and managerial accounting. Financial accounting relates to the preparation of financial statements for reporting purposes. Cost accounting deals with the calculation and analyzing of product cost, and managerial accounting deals with calculations of information relating to decision making.

Discussion

The difference between financial accounting and managerial accounting is that in financial ...