Both financial and managerial accounting rely on the same underlying financial data but there are major differences.Managerial Accounting:
A) Emphasizes financial consequences of past activities.
B) Emphasizes precision.
C) Emphasizes relevance.
D) Must follow GAAP.

Question

Quizplus · Accepted Answer

Managerial accounting emphasizes relevance by providing information that is useful for internal decision-making. It does not need to follow GAAP, and while precision is important, it is not the main focus. Financial consequences of past activities are also considered, but this is not the primary emphasis.

Both Financial and Managerial Accounting Rely on the Same Underlying