Question

How Does Management Accounting Differ From Financial Accounting?

Answer 1

Management accounting differs from financial accounting in the following ways:

1. Management accounting is focused on preparing data for the company’s internal management while financial accounting is about preparing data for the external audience.
2. Management accounting can be based on the analysis by managers without following any specific principle while financial accounting needs to follow rules such as IFRS or GAAP.

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Also see:

• Difference Between Cost Accounting and Financial Accounting
• Computerised Accounting System
• Dual Aspect Concept in Accounting