How is managerial accounting different from financial accounting?

This first case is about reading, researching, and familiarizing yourself with the purpose and importance of management accounting in today’s organization. Managerial accounting is both about understanding concepts and the ability to read and analyze financial information for internal use. Accordingly, this course is a mixture of reading, research, computations, and analysis.

Reading the background material for a basic understanding and then doing additional research to elaborate on the ideas is the approach for this first case. Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:

  • How is managerial accounting different from financial accounting?
  • Comment on the different needs and use of financial information for internal purposes.
  • The managerial accounting profession and its role in today’s business environment. How has it changed over time?
  • Comment on the Certified Management Accountant (CMA) designation.

Assignment Expectations

It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

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