Financial accounting is constrained by GAAP. Management accounting is constrained by

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Management accounting is not bound by GAAP, but it is constrained by the cost-benefit balance. Management accountants must consider whether the benefits of providing certain information outweigh the costs of collecting and analyzing that information. This constraint helps ensure that management accounting information is relevant and useful for decision-making. GAAS is the Generally Accepted Auditing Standards, which apply to auditors and not management accountants. Revenue Canada (now known as the Canada Revenue Agency) is the governing body for tax purposes, and a controller is a managerial position within a company and not a constraint for management accounting.

Financial Accounting Is Constrained by GAAP