What are two key ways management accounting is different from financial accounting?
A) Management accounting provides special-purpose information to people external to the firm and it is highly regulated.
B) Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of ASIC.
C) Management accounting is focused on providing formation to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles.
D) Management accounting focuses on providing information for internal users and it is largely unregulated.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Management accounting differs from financial accounting in that it focuses on providing information for internal users such as managers and executives, rather than external parties such as shareholders or regulatory bodies. It is largely unregulated and can be customized to meet the specific needs of the organization. Financial accounting, on the other hand, is highly regulated and provides financial information to external parties such as investors, creditors, and regulators.

What Are Two Key Ways Management Accounting Is Different from Financial