Essay - Distinguishing Financial from Management Accounting Financial Accounting is the Area...

Distinguishing financial from management accounting

***** accounting is the area of accounting concerned with reporting financial information to interested external parties. However, management accounting ***** the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management ***** plan, evaluate, and control within an organization ***** to assure appropriate use of an accountability for its resources. Management accounting also comprises ***** preparation of financial reports for non-***** groups such as shareholders, credi*****rs, regulatory agencies, and tax authorities (Venture Line [VL], 2005).

Financial & ***** accounting differ in a number of ways. Anderson stated some of the most significant ***** that the two differ; f*****ancial ***** is something performed to agreed st*****ards and principles (GAAP) designed to report true prof***** to the tax collector. Management accounting is a mechanism for using a financial metric (dollars) as a normalizing mechanism ***** making decisions about different choices and alternatives. Management ***** helps one decide whe*****r it is better to add 900 customer account advocates in a c*****ll center in Irel*****, against staffing a user experience and technical wr*****ing department in St. Louis, MO, ***** *****vesting heavily in intuitive products(2004, pp. 1-2).

***** should be e*****y for one's roommate to see why it is important to take financial accounting if one wants to go in***** International business. Management accounting will af*****d one the knowledge to make important international ***** decisions when needed. Without this basic knowledge, it would ***** more difficult for one ***** understand ***** significance of some ***** decision making moments. Without management *****, ***** can have *****y deciphering whether or not to invest staff, money, or other resources in another part of the world.

References

Anderson, D. J. (2004, May 25). Management vs. Financial Accounting. AGILEMANAGEMENT.NET, 2004,*****, *****. 1-3. Retrieved 08/04/05, at http://www.agile*****.net/Article/Weblog/*****vs.FinancialAcc.html

Venture Line (2005, 2005). Accounting Dictionary. ***** 08/03/05, at