Financial and Managerial Accounting (LO1)

Assume Alana Freeman has just been promoted to product manager at General Electric. Although she is an accomplished sales representative and well versed in market research, her accounting background is limited to reviewing her paycheck, balancing her checkbook, filing income tax returns, and reviewing the company’s annual income statement and balance sheet. She commented that while the financial statements are no doubt useful to investors, she just doesn’t see how accounting can help her be a good product manager.

Required Based on her remarks, it is apparent that Alana’s view of accounting is limited to financial accounting.

Explain some of the important differences between financial and managerial accounting and suggest some ways managerial accounting can help Alana be a better product manager.  (p. 23)