Much of managerial accounting information is based on:
A)a cost-benefit theme.
B)profit maximization.
C)cost minimization.
D)the generation of external information.
E)effectiveness but not efficiency.

Question

Quizplus · Accepted Answer

Managerial accounting information is used to make decisions that will benefit the organization financially. Therefore, a cost-benefit theme is a major factor in managerial accounting. Profit maximization and cost minimization may be goals of managerial accounting, but they are not the basis for much of the information. The generation of external information is not a primary focus of managerial accounting, and effectiveness and efficiency are both important factors in decision-making.

Much of Managerial Accounting Information Is Based On