Financial Accounting versus Managerial Accounting

I believe that financial (cost) accounting contributes more to a company’s success than managerial accounting. Even though managerial accountants help to increase profit whereas cost accountants only calculate the bottom-line, I still believe that cost accountants are the most important. Managerial accountants could not even do their jobs without the data provided to them by the cost accountants. Managerial accounts depend on accurate, timely, and clear data in order to direct the operations of the business. Cost accountants provide this data. Also, increasingly cost accountants are asked to take a more pro-active role in management and they are part of cross-functional teams helping to make decisions based upon the information they give. For these reasons, I believe that a cost accountant contributes the most to a company’s success.

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