Accounting rules applicable to management accounting are the same as those used for financial accounting.

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While management accounting and financial accounting both deal with financial information, they have different purposes and focus on different users. Therefore, the accounting rules may be different for each. Management accounting focuses on internal decision-making and planning, while financial accounting focuses on external reporting to stakeholders and compliance with financial reporting standards. As a result, management accounting has more flexibility in the accounting rules it can apply.

Accounting Rules Applicable to Management Accounting Are the Same as Those