Reference no: EM132043901

As finance management recognizes revenue before the customer pays the amounts owing (Atrill, 2017 p. 104), financial management statements should be used by managers alongside managerial accounting reports to make decisions about increasing revenue and, or reducing cost. From this example, I would like to highlight that although managerial and financial accounting takes different approaches to report revenue and cost, the reports and statements they produce should not be used by the management in isolation when making decisions that involve revenue and cost and the overall profitability of a business.