Difference Between Financial And Managerial Accounting

The similarity and differences between financial and managerial accounting, Management accounting is only used for internal operations and the financial is more external which is the overall financial picture and data collected by an organization that may have accountability towards the public, IRS and partners. Both are similar functions, but one is perhaps more in depth. The Target company purpose is design the show, review the project, inputs and outputs, expenses, and review all necessary steps involved with designing the shoes. There are a number of production methods in accounting and different systems that Target Company can use. The accounting system -managerial accounting is mainly used for internal purposes. Here are some†¦show more content†¦Manufacturing overhead (also known as factory overhead, factory burden, production overhead) involves a company s factory operation. It includes the costs incurred in the factory other than the costs of direct materials and direct labor. This is the reason that manufacturing overhead is often classified as an indirect cost. The general professional accounted has accepted accounting principles require that cost of direct material cost, direct labor, and manufacturing overhead be considered as the costs of products for valuing inventory and for determining the cost of creating these shoes. An example, of manufacturing overhead include the depreciation or the rent on the factory building, depreciation on the factory equipment, supervisors in the factory, the factory quality control department, factory maintenance employees, electricity and gas for the factory, indirect factory supplies. The method of cost accumulation is detailed accumulation of production costs attributable to specific units or groups of units which is all expenses related to the production of said item. For example, the entire process of producing a shoe is the cost accumulation which encompasses all expenses involved with the making of the shoe. Within an organization remains a certain amount of control which allows for environmental changes, limiting the accumulation of error, coping with organizational complexity. Cost information is vital to any business. It is the