The differences between
management accounting and financial accounting include:
1.Management
accounting provides information to people within an organization while
financial accounting is mainly for those outside it, such as shareholders
2.Financial
accounting is required by law while management accounting is not. Specific
standards and formats may be required for statutory accounts such as in the
I.A.S International Accounting Standard within Europe.
3.Financial
accounting covers the entire organization while management accounting may be
concerned with particular products or cost centres.