Businesses need to gather information about their transactions. This information is controlled by the finance manager or accountant. Management accounting on the other hand is concerned with providing the manager the daily accounting information. This will help the manager with certain decision makings and planning.
The financial and management accounting provide information to two different groups. Whilst the management accounting is not legally required and used only for internal business information, the financial accounting is legally required and reported regularly on historical information. It is often reported into monthly, quarterly and annual reporting periods.
Internal users for management accounting includes managers, employees and the…….