a.What is management accounting?b.State the differences between managment accounting and financial accounting.

Answer 1

Financial Accounting is primarily focused on general ledger analysis and the production of Financial statements such as Balance sheets, Income statements, statements of cash flow, etc.

Management accounting is primarily focused on providing management with information vital to making decisions to improve the performance of the organization. Cost accounting is a management accounting component. Also, things such as overhead, break-even analysis and job costing.

Answer 2

Accounting is a technique to prepare financial information based on past transaction datas.

Accounting as a science divided into 2 broad category :

First, MANAGEMENT ACCOUNTING
It's all about accounting for internal purposes. Activity for preparing buget, calculating cost of product or deciding buy or not .... are in the area of management accounting. Cost Accounting is a about technique for calculating cost, so the company can make decision what price of its product. Means, Coat Accounting is part of Management Accounting.

Second, FINANCIAL ACCOUNTING
It's all about preparing financial information for external parties. There are standardized form of report must be disclosed (balance sheet, income statement, cash flow statement & notes).

Answer 3

Managerial accounting is used to make internal decisions in the company. Financial accounting is used to report the financial position of the company to outsiders, such as investors and the government.