What is a good response to this statement regarding the types of cost one is responsible for and understanding of financial versus managerial accounting.

 Excited to be doing this accounting class with you all and looking forward to reading your posts.

Managerial accounting and financial accounting are very different. Managerial accounting in my opinion deals with the work it takes to make a business and the financial accounting is the profits and rewards from the work you just put in. Thats the easiest way to break it down. 

Managerial accounting is usually done by the boss, or the store manager. At my job the head chef is the one who does inventory and orders everything we need to make our cafe run properly. I work at the Georgia Aquarium in the Cafe Aquaria. The financial accounting is a completely different operation in a business. This is the person that is in charge of communicating with shareholders, creating reports for the businesses quarterly and annually sales. At the cafe we call him our Head Cashier. 

Financial focuses on the history of the company whereas, managerial focuses on the future and finding new ideas to make the company better. Financial deals with external such as investors, and tax authories. Managerial deals with internal like employee wages and decision making. 

At the Cafe Aquaria I was surprised at all the costs it took to operate that place. Not only do we have food costs which is the ingredients to make the menu items (Demetriou, 2022). Also, things needed to cook in and with like the stove, ovens, fryers, refrigerators. The utensils and even small items that you wouldn't even notice or think about, for example we serve the brownies and cakes on a cupcake wrapper, those small details also go into the costs. Now being our Cafe is inside the aquarium I'm not sure how rent or mortgage is done but regardless someone is paying for it which would fall under managerial accounting. The cafe also purchases pots and pans and cutting supplies, cutting boards, all the good stuff that goes into cooking. They buy paper boats that we serve the food in and foil to wrap the hot dogs. There are so many costs in a business and the prices that are placed on the food has to be enough to pay all the expenses. The head cashier at my job (financial accountant) told me that they pay $50,000 to temp agencies so we have staff to run the business. That is a lot of money for just half of our employees!  There is so much that goes into a business and now I have a better understanding of why our menu prices are so high and to be honest not the best quality of food. Think of the inflation going on right now and try to understand more why prices seem a little outrageous.

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This is a thoughtful response that highlights some key differences between managerial and financial accounting while providing personal insights from ... View the full answer