Comparing Financial and Managerial Accounting

Use the information below to answer the question:

Both financial and managerial accounting organize and communicate financial transactions, but they are intended for different audiences and serve different purposes.

Financial Accounting:
- Audience: External stakeholders (e.g., banks, investors, government)
- Reporting: Quarterly or annually
- Detail: High-level (aggregated) summary
- Verification: Extremely important, checked by experts inside and outside the company

Managerial Accounting:
- Audience: Business managers
- Reporting: As frequently as needed (daily, weekly, or monthly)
- Detail: Granular detail
- Use: Budgeting, hiring, and production purposes
- Verification: Usually checked by one expert inside the company

Question:
Which of the following is used for budgeting, hiring, and production purposes and analyzes these factors in granular detail?

A. Financial accounting
B. Aggregated accounting
C. Managerial accounting