Financial Accounting is a managerial accounting approach that attempts to match the indirect costs with the activities and products or services that actually generate those costs, the same way traditional accounting systems handle direct costs.

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Financial Accounting focuses on reporting an organization's financial information to external users, such as investors and creditors, and follows standardized guidelines. Managerial accounting, on the other hand, focuses on providing internal management with the information needed to make decisions, including the allocation of indirect costs, but this is not the primary focus of financial accounting.

Financial Accounting Is a Managerial Accounting Approach That Attempts to Match