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If an image is to be edited in Photoshop eventually, is it better to do the initial raw file processing in Lightroom, or should I use Camera Raw inside Photoshop to apply the same settings I would otherwise do in Lightroom? Does this make a difference in the outcome of the final image? Is one workflow recommended under certain circumstances?

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It shouldn't make any difference, they are both tools created by Adobe with the same processing engine behind them. As long as the versions of camera raw are in sync, its the same thing. Use whichever one suits your workflow the best. If you spend most of your time working a single image at a time and in PS, then stick with that. If you edit thousands of images at a time, obviously LR. Only you know what works best for you.

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