Which of the following statements is true about the use of managerial accounting information in nonprofit organizations?
A)Universities do not exist strictly to earn profit for shareholders,so managerial accounting information is not vital to their operations.
B)Unlike other nonprofits,hospitals (which exist with a focus on financial results in addition to health metrics)make use of managerial accounting.
C)Because managers of nonprofit organizations need timely and relevant information to make decisions,managerial accounting is vital to these organizations.
D)Because nonprofit organizations-hospitals,educational institutions,charities-do not exist with a profit motive,they do not use managerial accounting principles.

Question

Quizplus · Accepted Answer

Nonprofit organizations need timely and relevant information to make decisions just like any other organization. As such, managerial accounting is vital to the operations of these organizations. While hospitals may have a focus on financial results, other nonprofits such as educational institutions and charities also rely on managerial accounting principles to make informed decisions. Therefore, choices A, B, and D are incorrect.

Which of the Following Statements Is True About the Use