In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except
A) provide objective measures of past operations and subjective estimates about future decisions
B) be prepared in accordance with generally accepted accounting principles
C) be provided at any time management needs information
D) be prepared to report information for any unit of the business to support decision making

Question

Quizplus · Accepted Answer

Managerial accounting reports are not required to be prepared in accordance with generally accepted accounting principles, as their purpose is to provide internal decision-making support rather than external financial statement reporting. However, they should possess the other characteristics listed, including providing both objective measures of past operations and subjective estimates about future decisions, being available on-demand as needed, and being relevant to decision-making for any unit of the business.

In Order to Be Useful to Managers, Managerial Accounting Reports