Managerial accounting involves making decisions to eliminate a product line by analyzing its impact on revenues and expenses. A manager must think about how their decision will affect both revenue and cost changes before choosing the outcome that is most desirable and profitable. This includes creating two contribution margin income statements: one assuming continuation of the product and another assuming its elimination. The manager considers factors such as loss-making, decreasing demand, low profit levels, difficulty in emerging markets, or struggling with advanced technology before making a decision. Steps involved include defining the problem, gathering information, analyzing data, communicating the decision to relevant departments, and implementing the chosen outcome.