Final answer:
In managerial accounting, 'production' is the output produced, while 'production needs' are the requirements to meet demand. The term 'disorder ending inventory' likely refers to 'ending inventory,' which is crucial for financial reporting.
Step-by-step explanation:
In managerial accounting, the term production generally refers to the amount of goods that are manufactured or produced during a specific period. It's a measure of the output that the company's operations have completed. On the other hand, production needs relate to the requirements that must be met to achieve business goals and satisfy demand; this could be how much raw material is needed, or how many labor hours are required.
The phrase 'disorder ending inventory' is likely a typo or mistake. Assuming the intended term is 'ending inventory', this would relate to the goods that are still on hand at the end of an accounting period. Ending inventory is important for calculating cost of goods sold (COGS) and affects the balance sheet and income statement.
It is important for managers to understand both the production and production needs to manage resources efficiently and meet the financial goals of the company. Discrepancies between production and production needs can indicate issues that need to be addressed, such as inefficiencies, waste, or supply chain disruptions.