Managerial Accounting
Managerial accounting refers to the process of generating financial information within an organization, primarily for internal use by management. It focuses on providing detailed and timely cost data to assist managers in decision-making, budgeting, and performance evaluation. Managerial accountants utilize various tools and techniques such as activity-based costing, variance analysis, and job order costing to analyze financial information and generate insights. This information is used to evaluate the efficiency and effectiveness of different departments and processes within the organization, identify opportunities for improvement, and support strategic decision-making. Managerial accounting differs from financial accounting in that it is not subject to generally accepted accounting principles (GAAP) and focuses more on providing useful information to internal stakeholders rather than external parties such as investors or regulatory bodies.
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