As you read this section, pay attention to the differences between financial accounting and managerial accounting. These differences are illustrated in Table 1.1. Also, evaluate what types of managerial accounting information you use or produce in your job. Were you surprised to realize that you are already familiar with some parts of managerial accounting?
The subtopics below will discuss how managerial accounting contributes to the planning and controlling functions. The four functions of management – planning, organizing, leading, and controlling – are covered in BUS208: Principles of Management.