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How is managerial accounting different from financial accounting?

Introduction to Managerial Accounting

This first case is about reading, researching, and familiarizing yourself with the purpose and importance of management accounting in today’s organization. Managerial accounting is both about understanding concepts and the ability to read and analyze financial information for internal use. Accordingly, this course is a mixture of reading, research, computations, and analysis.

Reading the background material for a basic understanding and then doing additional research to elaborate on the ideas is the approach for this first case. Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:

  • How is managerial accounting different from financial accounting?
  • Comment on the different needs and use of financial information for internal purposes.
  • The managerial accounting profession and its role in today’s business environment. How has it changed over time?
  • Comment on the Certified Management Accountant (CMA) designation.

The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.


Required Materials

Management Accounting (2015) Pearson Learning  Solution, New York

Management Accounting versus Financial Accounting (2015) Pearson Learning  Solution, New York

Introduction to Managerial Accounting (2007, July 25) [Video File].

Martin, J. R. (n.d.) Management Accounting: Concepts, Techniques, and Controversial Issues – Chapter 1: Introduction. Management And Accounting Web Home Page.

Professor Myles Bassell, Managerial Accounting (2011). This is a 58-minute video presentation in YouTube. It is an excellent introduction and overview of managerial accounting. You can find other useful videos in related links.

White, L., Clinton, B., van der Merwe, A., Cokins, G., Thomas, C., Templin, K., & Huntzinger, J. (2011). Why We Need a Conceptual Framework for Managerial Costing. Strategic Finance, 93(4), 36-42.

Accounting for Management (n.d.). Managerial or Management or Cost Accounting Terms and Definitions.

The following four texts can be used as additional background material throughout the course:

Agrawal, N. K. (2010). Principles of Management Accounting, Global Media (read chapter 1), from library portal.

Hermanson, R.H., Edwards, J.D., & Invacevich, S.D. (2011). Accounting Principles: A Business Perspective. First Global Text Edition, Volume 2 Managerial Accounting.

Madegowda, J. (2007). Management Accounting, Global Media (read chapter 1), from library portal.

Walther, L. M. (2010). Principles of Accounting: A Complete Online Text,

Note that there are useful videos associated with related chapters in Dr. Walther’s textbook. They are all useful, so feel free to watch them all. Readings from this textbook will be assigned for future modules and each chapter has at least one video associated with it.

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