In general, managerial accounting differs from financial accounting because it is internally focused as opposed to externally focused. Managerial accounting (or strategic cost analysis) is centered on decision making and the management of the firm.
As a mechanism to introducing yourself to the scope of strategic cost analysis, please post an example of the application of strategic cost analysis to decision making in a firm.
As an example, budgeting is a key planning tool that allows for the measurement and evaluation of plans. In addition, budgets are the key communication vehicle of company financial and operating plans to all employees. Please take a similar example of a key strategic cost tool and discuss its importance to the decision process of the firm.