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Randel Ochoa was promoted to a new position that requires skills in budgeting, financial projections, planning, and performance evaluation. However, Randel lacks experience in these areas. He plans to take an accounting course to learn the skills. Randel asked the cost accountant to outline the key differences between financial and management accounting to help prepare for his new role. The cost accountant explained that financial accounting focuses on reporting to outsiders about finances, while management accounting focuses on internal reporting, planning, and decision making. The cost accountant advised that management accounting would be more useful for Randel's new position which requires budgeting and performance evaluation.

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163 views

01 Activity 1

Randel Ochoa was promoted to a new position that requires skills in budgeting, financial projections, planning, and performance evaluation. However, Randel lacks experience in these areas. He plans to take an accounting course to learn the skills. Randel asked the cost accountant to outline the key differences between financial and management accounting to help prepare for his new role. The cost accountant explained that financial accounting focuses on reporting to outsiders about finances, while management accounting focuses on internal reporting, planning, and decision making. The cost accountant advised that management accounting would be more useful for Randel's new position which requires budgeting and performance evaluation.

Uploaded by

ToastedBacon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BM1915

NAME: Salazar, Richelldee M. DATE: 9/18/2022 SCORE:

COMPARATIVE ANALYSIS

Instructions: Read and analyze the scenario below. Write your answers on the spaces provided. (3 items x
10 points)

Randel Ochoa was informed that he got promoted to a new position in their company. He was pleased but
uncomfortable because he is not well-versed about budget reports and financial projections, as well as in
planning and performance evaluation, which will be part of his main tasks. He is planning to take a course in
accounting to be able to do the tasks that will be assigned to him. Meanwhile, he asked you, as the company’s
cost accountant, to state five (5) principal distinctions between financial and management accounting. Prepare
your response to Randel.
In the My Decision box, write down which field of accounting will be more useful in Randel’s new position.

Management Accounting Financial Accounting

 The purpose of Managerial Accounting is for the  If the managerial is insiders, then the financial
insiders. It focusses on measuring the expenses and cash accounting is outsiders’ users providing information
flows carrying the flow of controlling, planning and about the financial performance and organization
decision making. finance.
 Managerial Accounting focuses of the reports on  They focus on the business itself.
sections.  It required financial statements.
 It also the type to reports management such as  To prevent the insiders from meddling to outsiders.
budgeting, financial and costing.  It usually covers the year, quarter, or month
 Managerial has its own standards and options, they
create they own rules while producing information that
is relevant.
 It covered any reports and period as the management
required.

My Decision

-Based on Randel problem is more on financial performance it wasn’t mentioned on his performance, he only thinks that
generating a profit not entirely the system of how the company works. Since I the accountant would advise him to still study even just
brief of Managerial hence can create more understanding statements internal and external that will share to the stakeholders and the
public. Being a financial accountant is focused to understand proper value of company assets. Therefore, can make Randel work more
efficiently.

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