ECONOMICS

Detailed explanation-1: -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-2: -5. What are the instruments/ tools related to management accounting? Explanation-Marginal costing, standard costing, and budget control are tools based on cost-accounting information and for future information on management accounting.

Detailed explanation-3: -Financial accounting helps managers create budgets, understand public perception, track efficiency, analyze product performance, and develop short-and long-term strategies, among several other decisions aided by accounting figures.

Detailed explanation-4: -Managerial accounting can be used in short-term and long-term decisions involving the financial health of a company. Managerial accounting helps managers make operational decisions–intended to help increase the company’s operational efficiency–which also helps in making long-term investment decisions.