BM1915

NAME: Edcel C. Fernandez DATE: 09/29/21 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

Managerial accounting, also called management
accounting, is a method of accounting that
creates statements, reports, and documents that
help management in making better decisions
related to their business' performance.
Managerial accounting is primarily used for
internal purposes.
Financial accounting is a specific branch of
accounting involving a process of recording,
summarizing, and reporting the myriad of
transactions resulting from business operations
over a period of time. ... Work opportunities for a
financial accountant can be found in both the
public and private sectors.

My Decision

For me I think Randle Ochoa choose Management accounting field because he need more planning
and performance evaluation he needed more about decision making and controlling. But also
Randle Ochoa make a research and study in his free time about Financial accounting because he
said that he is no well- versed about budget reports and financial projection.

01 Activity 1 *Property of STI

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