Situation: Assume Amy Fuller has just been promoted to product manager at Kraft Foods. 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 companys annual income statement and balance sheet. She commented that while the financial statements are no doubt useful to investors, she just doesnt see how accounting can help her be a good product manager.

Question: Based on her remarks, it is apparent that Amys 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 Amy be a better product manager.