Managerial Accounting

The video explains the differences between managerial and financial accounting. Managerial accounting is aimed at internal users like managers and focuses on future-oriented, relevant data for decision-making. It does not require precision or adherence to standards like GAAP. Financial accounting, on the other hand, targets external users such as investors, focuses on past activities, and requires precise, verifiable data. It must comply with GAAP and reports on the company as a whole. Managerial accounting is optional, while financial accounting is mandatory for tax purposes.

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