Answered: Question 6 Discuss the difference…

Question 6 Discuss the difference between Financial Accounting and Management Accounting and highlight who uses Management Accounting and what is the key function of Management Accounting.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 8Q: What are the key differences between financial accounting and managerial accounting?

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Question

Question 6
Discuss the difference between Financial Accounting and Management
Accounting and highlight who uses Management Accounting and what is the
key function of Management Accounting.

Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.

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