It is important for business people to have an understanding of basic accounting. Although many people think only the accountants are concerned with accounting information, managers outside the accounting office are heavily involved with managerial accounting information in order to effectively run their areas of responsibility. This discussion will cover the difference between financial and managerial accounting and how managerial information is used by managers.

Financial accounting is what most people think of when the term accounting is mentioned. Publicly traded companies post their financial reports in their investor relations sections for public access. While managerial accounting information can sometimes be gleaned from a company's annual report, typically what a company shares externally falls within the scope of financial accounting.

• Include the following in your discussion:
  • Explain the difference between financial and managerial accounting limits, and how this effects what managerial accounting information a company may be willing to share publicly.
    • How does this difference contribute to managerial accounting's role in decision-making within an organization compared to financial accounting?
  • Consider the scope involved in managerial accounting, including both the Value and Supply Chain.
  • Define both the Value and Supply Chain for Levi Strauss and why it is important to include them in management decisions.