The type of information provided by managerial accounting differs from the information provided by financial accounting.

Question

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Managerial accounting focuses on internal decision-making and provides information to management for planning, controlling, and evaluating business operations. Financial accounting, on the other hand, is geared towards external reporting requirements and provides information to stakeholders such as investors, creditors, and regulatory agencies. The two types of accounting serve different purposes and provide different types of information.

The Type of Information Provided by Managerial Accounting Differs from the Information