Managerial accounting is different from financial accounting in that
A) Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
B) Managerial accounting never includes nonmonetary information.
C) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
D) Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
E) Managerial accounting is mainly used to set stock prices.

Question

Quizplus · Accepted Answer

Managerial accounting includes many projections and estimates, whereas financial accounting is more focused on historical data and has a minimum of predictions. Managerial accounting is used by managers within an organization to make decisions and plan for the future, whereas financial accounting is primarily used for external reporting to stakeholders such as investors and creditors.

Managerial Accounting Is Different from Financial Accounting in That