Accounting Question: Download Questions PDF
What is the difference between financial accounting and management accounting?
Answer:
Very briefly, the difference has to do with the needs of the user.
Management accounting for is the internal users of an entity and Financial Accounting is for the external users.
Internal users (management) may be interested in the cost of making an item using process A versus process B. Whereas External users are mostly interested in the overall results of those management decisions.
Management accounting for is the internal users of an entity and Financial Accounting is for the external users.
Internal users (management) may be interested in the cost of making an item using process A versus process B. Whereas External users are mostly interested in the overall results of those management decisions.
Download Accounting Interview Questions And Answers
PDF
| Previous Question | Next Question |
| What is the distinction between cost accounting and management accounting? | What is the difference between the accrual accounting and cash accounting? |