Deliverable Length: 2-3 pagesYou have recently hired a new assistant, Susan Thompson, who previously...

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Deliverable Length: 2-3 pagesYou have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting office preparing journal entries, which provide you with a recording of the day-to-day activities of the companyand financial statements (income statement, statement of owners' equity balance sheet, and cash flow statement). Although your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting.AssignmentIn a memo to your new assistant, Susan Thompson, explain to her the similarities and differences between financial and managerial accounting. Provide examples of managerial accounting reports that she could expect to see within EEC, and explain how management might use the information to make decisions. Keep in mind that the income statement, statement of owners’ equity balance sheet, and cash flow statement, although generated in financial accounting, are used to develop all of your managerial accounting reports. Examples of a few of those reports are the horizontal analyzes, vertical analyzes, and ratios.(Please include an introduction and conclusion. Additionally, include references in APA 6th edition format)

David · Accepted Answer

Introduction:- 
Managerial Accounting is basically concerned with managers. The information or 
results of managements accounting are more used by people who are internal to an 
organisation and who control the external affairs of the company. Data with which 
organisation actually operate is provided by managerial accounting whereas financial 
accounting provides a measuring tape with which company’s past performance is 
evaluated. 
 Some of the key differences between the two are highlighted in the table below:- 
Sl.No. Financial Accounting Managerial Accounting 
1. It helps in making investment and 
financial decisions 
It helps the management to plan 
operating activities and in decision 
making activities related to it 
2. GAAP is to be followed No such principles are laid down 
3. Information or results produced are 
used by parties who are external to an 
organisation 
Information produced is used by 
parties who are internal to an 
organisation like managers and 
employees 
4. Main focus of financial accounting is 
on past 
Main focus of managerial accounting 
is on present and future 
5. Reports are generated in fixed period 
of time like annually, semi-annually, 
quarterly 
Reports are generated when need 
arises 
6. Reports produced is of greater 
importance to external users like 
shareholders, creditors, government 
Reports of management accounting 
are exclusively for the use of 
employees and managers 
7. It is mandatory to prepare financial 
reports 
There is no mandatory requirement 
to prepare managerial accounting 
report 
8. The objective of Financial accounting 
is to present a report on performance 
of the company and to present a true 
and fair view of financial affairs of the 
company 
The objective of managerial 
accounting is To manage plan and 
control the operating and internal 
activities of the organisation 
9. The process includes recording 
classifying analysing and interpreting 
the results of financial information 
The process includes extraction of 
data from ledgers and cost 
statements as and when required 
10. Based on quantitative data Based on qualitative as well as 
quantitative data
Job Costing Report, Batch Costing Report, Operating Budget report, Purchase and 
sales budget report and expenses report are some of the examples of managerial 
accounting report. 
Managers can use information for:- 
1. Forecasting and decision making. 
2. To advise how the business should grow, how to move further in order to 
achieve better results. 
3. To Take strategic decisions 
4.

Deliverable Length: 2-3 pages You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting office preparing journal entries, which provide you with a...

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