Managerial accounting places less emphasis on precision and more emphasis on timeliness of data than financial accounting does.

Question

Quizplus · Accepted Answer

Managerial accounting is focused on providing relevant information for internal decision-making, so timeliness of data is crucial. While precision is still important, it is not always necessary to the same degree as in financial accounting, which focuses on accurately reporting the financial performance of a company to external stakeholders.

Managerial Accounting Places Less Emphasis on Precision and More Emphasis