l 1) The key difference between nancial accounting and managerial accounting is the difference in the users. 12) The Sarbanes OXley Act of 2002 requires that an audit firm should not provide non-tax consulting services to a client if the audit firm is also the external auditor for the rm's nancial statements in the current year. 13) The main reason that we classify total cost into direct cost and indirect cost is that the nature of these two cost categories is different: direct cost can be easily traced to the cost object and indirect cost cannot be easily traced to the cost object and should be allocated to the cost object. This classication facilitates us to better assign costs to the cost object