5 IN CONTRAST TO FINANCIAL ACCOUNTING, MANA-COME FROM COST REDUCTION...
1-5
In contrast to financial accounting, mana-
come from cost reductions, but the primary bene-
gerial accounting: (1) focuses on the needs of the
fit is often an increase in capacity. At non-con-
manager; (2) places more emphasis on the future;
straints, increases in capacity just add to the al-
(3) emphasizes relevance and flexibility, rather
than precision; (4) emphasizes the segments of an
ready-existing excess capacity. Therefore, im-
provement efforts should ordinarily focus on the
organization; (5) is not governed by GAAP; and
constraint.
(6) is not mandatory.