What is the main difference between financial and managerial accounting quizlet?

Q: What is the main difference between managerial accounting and financial accounting?

Managerial accounting focuses on an organizations internal financial processes, while financial accounting focuses on an organizations external financial processes. Managerial accountants focus on short-term growth strategies relating to economic maintenance.

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What is the main difference between managerial accounting and financial accounting?
What is the key difference between managerial and financial accounting quizlet?
Which of the following is true about the differences between financial and managerial accounting?
What is the difference between management accounts and financial statements?

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Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.

a. relevant, reliable, consistent, and comparable

b. circumstantial, inferential, presumptive, and provisional

c. comprehensive, exhaustive, extensive, and independent

d. cursory, intensive, unabridged, and superficial

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1,012 solutions

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The first step is to choose the data points pertaining to the highest and lowest activity levels. In this case, the high level of activity was in June at 850 hours of maintenance and the low level of activity is in February with 450 hours of maintenance. Notice that this method relies upon two data points to estimate the fixed and variable portions of a mixed cost, as opposed to one data point with the scattergraph method.

The second step is to determine the total costs associated with the two chosen points. We incurred costs of $9,800 at the high level of activity and $7,400 at the low level of activity.

The third step is to calculate the change in cost between the two data points. The change in maintenance hours was 400 hours and the change in maintenance dollars was $2,400. Notice, this method relies upon two data points to estimate the fixed and variable portions of a mixed costs, as opposed to one data point with the scattergraph method.

For this example, we divide $2,400 by 400 and determine that the variable cost per hour of maintenance is $6.00.

-- Work on examples to get a good grasp of the formula.

What is the main difference between managerial accounting and financial accounting?

Managerial accounting focuses on an organization's internal financial processes, while financial accounting focuses on an organization's external financial processes. Managerial accountants focus on short-term growth strategies relating to economic maintenance.

What is the key difference between managerial and financial accounting quizlet?

Terms in this set (12) What are the major differences between managerial accounting and financial accounting? financial accounting reports are prepared for outside parties while managerial reports are for inside parties. Managerial accounting is focused on the future while financial summarizes past transactions.

Which of the following is true about the differences between financial and managerial accounting?

Answer and Explanation: The correct answer is c. Managerial accounting places more emphasis on the future.

What is the difference between management accounts and financial statements?

Financial accounting reports on the profitability (and therefore the efficiency) of a business, whereas managerial accounting reports on specifically what is causing problems and how to fix them.