Question

1. whats the difference between financial accounting and managerial accounting?
2. why do companies that implement lean production tend to have minimal inventories?
3. why is ethical behavior important to business?
4. why do companies take a physical count of their inventory on hand at least once per year?

Explanation:

1. Financial accounting focuses on external - reporting with standardized rules for investors, creditors etc. Managerial accounting is for internal - use, providing customized information for management decision - making.
2. Lean production aims to eliminate waste. Minimal inventories reduce storage costs, risk of obsolescence and overproduction, aligning with the lean philosophy of producing only what is needed when it is needed.
3. Ethical behavior builds trust with stakeholders (customers, investors, employees), enhances reputation, reduces legal risks and can lead to long - term sustainable success.
4. A physical count of inventory ensures accuracy of inventory records, helps detect theft, damage or errors, and provides reliable data for financial reporting and inventory management.

Answer:

1. Financial accounting is for external reporting with standard rules; managerial accounting is for internal use with customized info.
2. To eliminate waste, reduce costs and risks, and align with lean philosophy.
3. Builds trust, enhances reputation, reduces risks and promotes long - term success.
4. Ensure record accuracy, detect issues, and provide reliable data for reporting and management.