Explain y managerial accounting is used to improve a co. from the inside out & y financial acc. do not work?

Answer 1

financial accounting only involves numbers. managerial accounting, however, includes not only numbers by the impact of the numbers on the company (employees).

also, managerial accounting involves decision making. they provide information on how you can improve your business, with a few given suggestions which financial accounting cannot do. for example the profit and loss statement is separated into variable and fixed costs (for mgmt) to see how much excessive sales over variable costs (contribution margin) is used to cover up fixed costs. this will then allow the manager to redo the costing.

hope this helps a little...