Difference Between Management Accounting and Finance Accounting:
Financial Accounting:
Primary users: External
Primary organizational focus: Whole (Aggreated)
Information characteristics: Must be Historical, Quantitative, Monetary, Verifiable.
Overriding criteria: Genaerally acepted Accountiung principles, Consistency, Verifiable.
Recordkeeping: Formal
Management Accounting:
Primary users: Internal
Primary organizational focus: Parts (segmented)
Information characteristics: May be current or forecasted, Quantitative or qualitative, Monetary or nonmonetary, timely and at a minimum reasonably estimated.
Overriding criteria: Situational relevance (usefulness), Benefits in excess of costs, Flexibility.
Recordkeeping: Combination of formal or informal.
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