Financial and management accounting. David Colhane, an able electrical engineer, was informed that he was going to be promoted to assistant plant manager. David was elated but uneasy. In particular, his knowledge of accounting was sparse. He had taken one course in financial accounting but had not been exposed to the management accounting that his superi- ors found helpful.

Colhane planned to enroll in a management accounting course as soon as possible.

Meanwhile, he asked Susan Hansley, an assistant controller, to state two or three of the principal distinctions between financial and management accounting using some concrete examples.

As the assistant controller, prepare a written response to Colhane.