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Analogy Theory: It describes the possible causal conclusions about past or upcoming occurrences.
Causality Theory: It illustrates the connection between the numeric input as well as the managerial accounting goal's output that was used to obtain the result.
Objectives: The primary objective of managerial accounting is to help management increase earnings or reduce expenses. The main objectives of management accounting can also be put up as follows:
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Whereas financial accounting is largely concerned with giving information to various parties like investors and creditors, management accounting is primarily concerned with providing data to internal stakeholders like managers. Financial accounting is primarily centered on historical data, whereas managerial accounting tends to employ more precise, forward-looking information to help decision-making.
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