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3. Financial accounting is governed by generally accepted accounting procedures, while managerial accounting is not so governed.

4. Managerial accounting emphasizes the relevance and flexibility of financial data, while financial accounting requires adherence to factual events; thus financial accounting reports may not deviate from actual events, regardless of intent.

5. Financial accounting emphasizes precision, while managerial accounting emphasizes relationships and nonmonetary factors.

6. Managerial accounting emphasizes the segments of an organization, while financial accounting tends to look at an organization as a whole.

7. Managerial accounting draws heavily on other disciplines, while financial accounting relies primarily on its own base.

8. Managerial accounting is not mandatory, whereas for most organizations, financial accounting is mandatory. The purpose of traditional managerial accounting is to take financial

accounting data, blend it with nonaccounting data, and develop a new set of information and relationships concerning the financial functioning of an organization, which will enhance the effectiveness and the efficiency of the managerial decisionmaking process in the organization.5

Professional accountancy is one

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