Increased global competition is placing pressure on companies to reduce costs

Financial accounting reports financial and nonfinancial information that helps

managers implement company strategies$>$

Generally accepted accounting principles $($GAAP$)$ require that the same

accounting methods be used for both internal and external reporting.

Companies generally follow one of two basic strategies: $1)$ providing a quality

product or service at high prices, or $2)$ offering a unique product or service often

priced lower than competing products.