Describe the nature and functions of managerial accounting in your own words. 1.2 What do you understand by the term 'costing'? Explain this in your own words. Also explain why you think costing is important in any firm, particularly a manufacturing one. 1.3 Consider the following decisions that a firm should make, and in each case say whether it is a short-term or a long-term decision. (5) - Accepting a special production order - Buying new equipment versus re-modelling old equipment - Determining the best product mix from current products - Outsourcing a service - Choosing which products to manufacture - Expanding into a new area or country - Further processing or refining a current product - Diversifying by buying another business 1.4 Give an example to explain the role that managerial accounting can play in assisting a company to attain its strategic objectives. (3)