Financial accounting and managerial accounting are two different but equally important branches of accounting. Overall accounting includes calculation of financial figures such as tax, profit, expenses, income and many others. However in this article we will only discuss the areas related to the cost
Managerial (Management) Accounting Definition explains that the phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making.
Participative Budgeting or Self Imposed Budgeting: Learning Objective of the article: Define and explain the term “self imposed or participative budgeting” in managerial accounting. Explain the importance and use of a participative or self imposed budget in business. What are advantages and disadvantages of
Differential Cost Definition: Any cost that differs between alternatives in a decision-making situation. In managerial accounting, this term is synonymous with avoidable cost and relevant cost. Also see Incremental cost. Example: Cost of first alternative = 5000; Cost of second alternative = 4000; Differential
Managerial (Management) Accounting Definition: The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making. Click here to read more about managerial/management accounting
Difference Between Financial and Managerial Accounting (Financial Accounting Vs Managerial Accounting): Learning objectives of this article: Compare and contrast financial and managerial accounting. What is difference between financial and managerial accounting? Financial accounting reports are prepared for the use of external parties such as