ECONOMICS

Detailed explanation-1: -Managerial accounting does not focus on the company’s overall performance. Still, it does focus on parts or segments’ performance by making reports or analyses that help the internal users decide the best decision or alternative to choose for the company’s future.

Detailed explanation-2: -Managerial accounting focuses on evaluating the internal needs of businesses and solving problems that impact revenue streams, financial health and long-term profitability.

Detailed explanation-3: -Management account reports include your income statement, cash flow analysis, accounts receivable, accounts payable, overhead costs, sales forecasts, value of inventory on hand and analysis of key indicators and historical and budgeted information.

Detailed explanation-4: -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.