The difference between financial accounting and management accounting and the purpose of each
Accounting splits into two branches. Financial accounting reports a business's past performance to outsiders. Management accounting gives internal managers the data they need to make decisions.
Real World
Marks & Spencer's financial accounts are published each year so shareholders can judge performance, while its management accounts — never made public — help store managers decide which product lines to expand or cut.
Exam Focus
Always contrast audience (external vs internal) and time focus (historical vs future) to secure comparison marks.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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