Adam Saunders was a successful marketing executive at Exclusive Furnitures. On the eve of the company’s foundation day, he was informed that he would be promoted to Assistant Factory Manager from the next quarter. Adam was pleased but a bit uncomfortable. As an assistant factory manager, he might have to deal with accounts also, but unfortunately, he had no experience in accounting. He had taken one course in financial accounting to get some idea about the maintenance of factory accounts. Adam planned to enroll himself in a management accounting course. He asked his friend Charles, a cost accountant, to state three or four principal distinctions between financial and management accounting. 

Prepare Charles’s written response to Adam.