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  Difference Management and Financial Accounting

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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