Question: An accounting classmate notes that adherence to GAAP is not required for managerial accounting reports. She observes, If its so important for financial accounting, it

An accounting classmate notes that adherence to is not required for managerial accounting reports. She observes, “If it’s so important for financial accounting, it seems reasonable that it would also be useful for managerial reporting.” Explain to her why it’s more important that financial accounting reports adhere to than it is for managerial accounting reports to do so. In what ways is managerial accounting different from financial accounting?

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