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Managerial accounting is designed for the purpose of the decision makers within the company. Financial accounting is designed to accomplish the needs of those outside of the organization. Whether financial or managerial, is important that the data is accurate since so many important decisions are based upon it.
Managerial accounting is focused on supplying the organization’s managers with the present financial information necessary to their decision making process in managing their profit performance. An organization’s income and profits based on the structure of revenues and costs as well as the volume of activity that it achieves (Gould, 2008)...
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