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((For: Exemplary_Professor001 Only)) Discussion

Let us explore the differences between financial and managerial accounting. Financial accounting is rule-oriented, since the information is used to communicate with third parties. Managerial accounting, on the other hand, is for internal use. Anything goes as long as the information is a valuable tool for decision-making purposes, and the benefit of the information exceeds the cost of accumulating and analyzing it.??


Holt, M. (n.d.). Management Accounting vs. Financial Accounting. Chron.??http://smallbusiness.chron.com/management-accounting-vs-financial-accounting-3987.html

Principlesofaccounting.com. Managerial Accounting. Chapter 17.??


Below are some questions for discussion.

  • How is the purpose of managerial accounting different from financial accounting?
  • Are more accountants involved in the financial or managerial function today?
  • Comment on the use of a variable costing approach vs. absorption income statement. Describe the differences in the presentation and use of each type of income statement.
  • How is the concept of “cost of goods sold” different from “contribution margin”?
  • Explain the contribution margin concept/computation and when to use the information.??
  • Choose one or two topics for further investigation and share your knowledge with the class. Provide factual information (not merely opinions) backed up by current news, examples, or other interesting details. Your comments should be in your own words and include references in APA format, if applicable.

Presence during both weeks of the module and a minimum of three postings are required, one original posting and two responses to colleagues. Minimum required participation does not guarantee a perfect score.

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