Managerial and Financial Accounting

Running Head: Managerial and Financial Accounting

Managerial and Financial Accounting

ACC 300

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Managerial and Financial Accounting

Accounting is a large field of study which can be broken down into many different categories. Managerial and financial accounting is two main areas of the cost accounting system. Many similarities and differences lie between managerial and financial accounting, not only between these categories but also in their rules and regulations, reporting requirements and management information. Accounting is an important factor in the world, not only in the business segment but also in the day to day living.

According to Edmonds, Edmonds, McNair, Olds, Schneider (2006), what managerial accounting is a branch of accounting that provides information useful to internal decision makers and managers in operating an organization. Managerial accounting information contains more detailed information than financial accounting reports. It allows for internal decision maker or users to review the financial information about the company, such as financial statement information.

Historical financial statement

English: GPK Marginal Costing Structure Flow of Gr...

Financial Statement

Managerial accounting reports also contain non-financial information about the company, such as levels of customer satisfaction, brand index and competitors data that is gathered for these reports. Internal decision makers focus on detailed information which provides the performance of the company, including the divisions or departments of the company. In addition, management accounting concentrates on past performance and information as well present performance of the company. The forecasting of future financial transactions is described in management accounting. To protect public interest and to make sure this type of accounting is in order financial accounting is regulated by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the Public Company Accounting Oversight Board (PCAOB). In contrast, management accounting is not regulated by any specific agencies or board and or government...