Which of the following is the principal reason for preparing managerial accounting reports?
A) usefulness to management
B) cost of preparation
C) clarity
D) GAAP

Question

Quizplus · Accepted Answer

The principal reason for preparing managerial accounting reports is to provide useful information to management in making decisions related to planning, controlling, and evaluating business operations. While clarity and adherence to GAAP may be important considerations, they are not the primary reason for preparing managerial accounting reports. Cost of preparation may also be a factor, but it is secondary to providing useful information to management.

Which of the Following Is the Principal Reason for Preparing