Question

What do we call the branch of accounting that provides information to internal users?

Answer 1

The branch of accounting that provides information to internal users is called Managerial Accounting.

Step-by-step explanation:

The branch of accounting that provides information to internal users is called Managerial Accounting. Managerial accounting focuses on providing financial information and analysis to help internal users make informed business decisions. This branch of accounting is different from Financial Accounting, which provides information to external users such as investors and creditors.

Absolutely, Managerial Accounting is the branch of accounting dedicated to providing crucial financial information and insights to internal users within an organization. It focuses on data analysis, budgeting, forecasting, and performance evaluation to assist management in making informed decisions regarding operations, strategy, and resource allocation. Its primary goal is to support internal management needs for planning, controlling, and optimizing business processes.

Answer 2

Managerial Accounting is the branch of accounting that provides information to internal users. It is an integral part of the organization's reporting structure, which relays factual information and answers to who, what, when, where, why, and how questions that aid in internal decision-making processes.

Step-by-step explanation:

The branch of accounting that provides information to internal users is called Managerial Accounting. Managerial Accounting focuses on providing financial and non-financial information to the management of a company to support decision-making, planning, and controlling operations.

Internal users of financial information include managers, executives, and employees within the organization. They use this information to analyze financial performance, set budgets, make strategic decisions, and evaluate the efficiency of operations.

Managerial accounting reports include budget reports, performance reports, cost analysis reports, and variance analysis reports, among others.

Unlike financial accounting, which is oriented towards providing external users (like investors, regulators, and creditors) with information, managerial accounting is concerned with the internal aspects of business from an accounting perspective. It is an integral part of the organization's reporting structure, which relays factual information and answers to who, what, when, where, why, and how questions that aid in internal decision-making processes.