Reference no: EM132715723

Management accounting focuses on small part of the organization for example the cost and profitability of products, services, customers, and activities. It also measures the economic performance of decentralized operating units, such as divisions and departments. Financial accounting on the other and focuses on providing reports that describes the whole of the business.

Problem 1: Explain two fundamental differences in management accounting and financial accounting using examples to show why both disciplines provide meaningful values to internal and external users.