Company: LMN Retailers Inc.

Managerial Accounting Process:

1. Recording Costs:
   • LMN Retailers records its cost of goods sold at $30 million, reflecting costs associated with purchasing inventory.
   • Operating expenses, including store rent and employee salaries, are recorded at $10 million.

1. Analyzing Costs:
   • Conduct customer profitability analysis to identify the most profitable customer segments.
   • Perform cost-volume-profit analysis to assess the impact of sales volume on profitability.

1. Reporting Costs:
   • Present a cost of goods sold schedule to show the breakdown of costs by inventory type.
   • Provide a departmental income statement to analyze the profitability of each store location.

1. Income Tax Planning:
   • Analyze the tax implications of different inventory valuation methods.
   • Discuss tax strategies to optimize deductions for operating expenses.