BB 2301 Unit VI managerial accounting Disccusion

Business Finance

In this unit, we turn our attention away from financial accounting and review managerial accounting. Managerial accounting uses some of the same basic concepts in financial accounting with a focus on internal users (e.g., executives, managers, supervisors). The financial reports generated by managerial accountants are usually only made available to users within the company.

Discuss why managerial accounting is useful to internal users and why managerial accounting reports can be harmful if disclosed to external users.

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