Please reply to the following posts with a short response of your thoughts and option on their post.

Post #1

Managerial accounting is for internal users such as executive management to help them plan and make decisions. This type of accounting is quickly available without an audit required and its focus is on the company's divisions, processes, and projects (Wild et al, 2021).

Financial accounting is for external users who use this information to make decisions on investments and credit. Financial accounting is available only after an audit has been conducted, and the nature of this accounting type is monetary (Wild et al, 2021).

The main difference between these two accounting types comes down to the end users. Financial is for external users, while managerial is for internal users.

Post #2

Financial accounting and Managerial accounting deal with two different aspect of a company. "Financial accounting focuses on external users, and Managerial accounting focuses on the needs of internal users". Financial accounting consists of "Preparation, analysis, external auditing, consulting, planning, and criminal investigations" (Wild & Shaw, 2021). This means that financial accounting deals with accounting information from external users such as: lenders, shareholders, customers, government officials, and similar entities that do not work for the company itself. Managerial accounting is the opposite, in which it consists of accounting information revolving around internal users including purchasing managers, HR managers, production managers, and similar positions. Managerial accounting includes "General Accounting, cost accounting, budgeting, etc."

Post #3

Product costs are defined as "Production costs necessary to create a product and consist of direct materials, direct labor, and factory overhead" (Wild & Shaw, 2021) These are the costs that go into manufacturing the product. When a product is sold, the product cost is subtracted as a COGS expense. Period costs are "nonproduction costs linked to a time period." (Wild & Shaw, 2021) These are all the costs that go into the product excluding the cost of production. Shipping costs, wages, rent, etc. are all period costs as they are recurring over time.

Post #4

The key difference between product costs and period costs is that product costs are only incurred if products are acquired or produced, and period costs are associated with the passage of time. Product costs are initially recorded within the inventory asset. Once the related goods are sold, these capitalized costs are charged to expense. This accounting is used to match the revenue from a product sale with the associated costs of goods sold so that the entire effect of a sale transaction appears within one reporting period's income statement.[