BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions. Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.

Detailed explanation-2: -Managerial accounting focuses on an organization’s internal financial processes, while financial accounting focuses on an organization’s external financial processes. Managerial accountants focus on short-term growth strategies relating to economic maintenance.

Detailed explanation-3: -Because managerial accounting is not for external users, it can be modified to meet the needs of its intended users. This may vary considerably by company or even by department within a company.

Detailed explanation-4: -Managerial accounting, also called management accounting, is a method of accounting that creates statements, reports, and documents that help management in making better decisions related to their business’ performance. Managerial accounting is primarily used for internal purposes.

Detailed explanation-5: -Managerial accounting information is used by external and internal users equally. If net income for a proprietorship was $50, 000, the owner withdrew $20, 000 in cash and the owner invested $10, 000 in cash, the capital of the owner increased by $40, 000.