Can you please help me explain more on the below?

The professor's comments:

Faculty Comments:I hope you're doing well. I just wanted to take a moment to share some information with you that I think might be helpful. When it comes to accounting, there are different methodologies and scopes that are used. Financial accounting is more historic, dealing with costs that have already been incurred, while managerial accounting is more forward-looking, predicting future costs. Financial accounting reports tend to be more general, whereas managerial accounting reports are more specific to departments or product lines. There are also differences in how each type of accounting is regulated. Financial accounting must adhere to strict standardized accounting principles, while managerial accounting has more flexibility to meet internal needs.

This was my paper.

Accounting Methods

Managerial Accounting

Managerial accounting is an internal accounting procedure that documents the cost of the organization's activities in a detailed manner (Braggs, 2018). This accounting method allows managers to understand the organization's financials, understand costs, and save money. This type of accounting is only utilized internally.

Financial Accounting

Financial accounting is an external method to provide financial information to external parties such as investors (Marshall, McManus & Viele, 2020). This is historical data about the financial of the company. Unlike managerial accounting, the data must be completely accurate, where the information can be approximated. Financial accounting accounts for business transactions within a specific period.

Recommendation

The recommendation is clear: accept the proposed offer with Super Deals. The increase in produce does not affect the personnel utilized to produce the pickles. This deal is profitable for the organization and allows the brand to enter a different market without increased advertisement. The production of the additional cases will not require additional resources, as production can ramp up to 12,000 cases per month. Producing 9,000 cases at the sell rate of $20 and a 2,000-case discount rate of $9.50 is not just profitable: it's a sound financial decision for the company.

Scenario

The Acme Pickle Company has distributed pickles under the "Florida's Best" brand for eight years from its production facility in Jacksonville, Florida. It sells the pickles to stores in the southeastern United States. Acme normally produces between 8,000 and 10,000 cases of pickles a month but has the capacity to produce 12,000 cases without adding equipment or personnel.

The owner of a twenty-store supermarket chain in Wisconsin, called Super Deals, visits friends in Florida and is impressed with the quality of "Florida's Best" pickles. He approaches you, an Acme Pickle account manager, with an offer to buy 2,000 cases of pickles to use in a special promotion at his stores. He is thinking of something such as:

"Free jar of Florida's Best pickles with every purchase of forty dollars or morethis month only!"

He offers Acme a price of $9.50 per case, knowing that it is a very substantial discount from the normal selling price of $20 a case. Acme's management is inclined to turn the offer down, because their cost is calculated at $10.00 a case. They believe they would lose money if they sold at $9.50 a case. You, on the other hand, believe that some errors have been made in the cost accounting.

Requirements:

Your analysis for the Controller and Sales Manager is needed to suggest a different way of calculating the pricing of the pickles that may be lower. As part of your analysis, address the following items:

• Analyze how financial accounting of production cost differs from managerial accounting of production cost.
  • Explain the difference between the two accounting methods.
  • Identify the benefits and drawbacks of each method.
• Recommend a plan of action to management regarding Super Deals' offer.

Below is the cost report for a recent month. In this month, Acme produced 9,000 cases and sold them at $20 per case, which is Acme's normal selling price. Nine thousand cases are well beyond Acme's break-even point, enabling Acme to record a substantial profit at the nine-thousand-case level.

Item	Cost
Cucumbers	$15,000
Spices and vinegar	11,000
Jars and lids	10,000
Direct labor, paid by the case	30,000
Line supervisors, on salary	10,000
Depreciation on factory	10,000
Property taxes on factory	3,000
Insurance on factory	1,000
Total Costs:	$90,000
Cost per case (9,000 cases produced) $10.00