ECONOMICS

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 is the provision of accounting information for a company’s internal users. Unlike financial accounting, managerial accounting is not bound by any formal criteria such as generally accepted accounting principles (GAAP).

Detailed explanation-3: -Outside parties do not use managerial accounting; it is primarily used internally by management to make decisions that affect the organization’s efficiency.

Detailed explanation-4: -Unlike financial accounting, which is primarily concentrated on the coordination and reporting of the company’s financial transactions to outsiders (e.g., investors, lenders), managerial accounting is focused on internal reporting to aid decision-making.

Detailed explanation-5: -While both these types of accounting deal with numbers, managerial accounting is strictly for internal use. Financial accounting, on the other hand, focuses primarily on the collection of accounting information to create financial statements.