What are two key ways management accounting is different from financial accounting?
A) Management accounting provides special-purpose information to people external to the firm and it is highly regulated.
B) Management accounting provides information for the day-to-day running of an organisation and it is governed by the requirements of ASIC.
C) Management accounting is focused on providing information to shareholders who wish to have input into the management of the organisation and it is regulated by generally accepted accounting principles.
D) Management accounting focuses on providing information for internal users and it is largely unregulated.

Question

Quizplus · Accepted Answer

Management accounting is primarily concerned with providing information to internal users (such as managers and employees) to facilitate decision-making and improve organizational performance. Financial accounting, on the other hand, is primarily concerned with providing information to external users (such as investors, creditors, and regulators) for decision-making and accountability purposes. Management accounting is largely unregulated, whereas financial accounting is governed by generally accepted accounting principles (GAAP) and other regulatory requirements.

What Are Two Key Ways Management Accounting Is Different from Financial