For Week 4, our focus was the different concepts and terms of Managerial Accounting. Conclude it and analyse what else can be added from managerial accounting point of view. From Week 1, we know that the basic difference between financial and managerial accounting is that financial accounting focuses on using past data to provide information about the company to external stakeholders. In contrast, managerial accountings focus is on custom internal reporting with projected future data for the betterment of the company from the inside. Managerial accounting reports are key tools used by Business Managers to fulfill their four main functions as listed below: 1 Planning 2 Directing and Motivating 3 Controlling 4 Decision Making These major functions also form the planning and control cycle of a business. It can also be known as a business strategy. The execution of a business strategy can be done in various ways, including customer intimacy, operational excellence, product leadership and persistence. The key business functions that add value to the businesss products and services form the Value chain. We learnt about why ethics matter for a companys operational efficiency and, in turn, how it impacts economic efficiency. We also learnt about the Manufacturing process and the costs involved in it. Product costs or Period costs are two classifications of manufacturing costs. The product costs include: 1 Direct material costs 2 Direct labour costs 3 Manufacturing overhead costs include indirect material costs, indirect labour costs and other miscellaneous costs related to actions happening within the factory. The product costs/non-manufacturing costs include: 1 Selling and Marketing expenses 2 Administration expenses The two major formulas we have come across are as below: 1 Beginning Work InProgress (WIP) Inventory + Total Manufacturing Costs = Total Cost of WIP 2 Total Cost of WIP Ending Inventory WIP = Cost of Goods Manufactured Both managerial and financial accounting are essential for a businesss success. Suppose I must pick only one to be more important than the other. In that case, the managerial accounting reports used to improve the business operations, maybe even daily, should be picked first. But we must consider that without financial reporting, we will never know how well or bad the business situation is, and all the strategies implemented using the managerial reports might not even be recognized as a success or corrected in case of failure. So, in the ideal condition, I would consider them equally important. We should also consider as a business manager or business owner the managerial accounting reports should be more important whereas from the perspective of an investor or shareholder or any other stakeholder financial accounting reports will be the first thing they look for.

Conclude it and analyse what else can be added from managerial accounting point of view.