Differences between financial and managerial accounting Many German com¬ panies have their management accounting department as part of the manufactur¬ ing operations group rather than as part of the corporate finance department. These German companies operate two separate accounting departments. One performs financial accounting functions for shareholders and tax authorities; the other main¬ tains and operates the costing system for manufacturing operations.

REQUIRED What are the advantages and disadvantages of having separate departments for fi¬ nancial accounting and management accounting?