Week Four Paper - Essay Example

nting information for taking important information while the financial accounting is meant to showcase the accounting figures to the outside world about the prevailing financial strength of the company. Managerial accounting helps the management in taking futuristic decisions, planning and evaluating the existing strategies of the company. These tasks become much easier when managerial accounting provides the information like; Managerial accounting is in general used by the management team of the company for translating the trends and signals available from the financial information.

The more important aspect is how this information is used by different levels of managers in their own wisdom. Some of the important usages are; People from outside the company as well as stakeholders from within the company make use of financial accounting details to arrive at a decision regarding their decision to continue with the company or look for a better opportunity. The shareholders will go through the financial details in order to figure out the profit margins and percentage their own earnings in the form of dividends, interests or bonus shares.

Some of the inferences that could be drawn using financial accounting information