Which of the following is true regarding managerial accounting?
A) It often emphasises segments rather than the organisation as a whole.
B) It often must follow established rules called generally accepted accounting principles.
C) Its primary focus is on providing information to external users.
D) It is less flexible than financial accounting.

Question

Quizplus · Accepted Answer

Managerial accounting often emphasises segments and specific departments or areas of the organisation rather than the organisation as a whole. This allows for more detailed analysis and decision making at a micro level.

Answer: B
 While financial accounting must follow generally accepted accounting principles (GAAP), managerial accounting does not have to follow these strict rules. Managerial accounting is more flexible and can be tailored to meet the specific needs of the organisation.

Answer: C
 Managerial accounting is primarily focused on providing information to internal users, such as management and employees, to help with decision-making and performance evaluation.

Answer: D
 This statement is not true. Managerial accounting is generally considered to be more flexible than financial accounting, as it is not constrained by GAAP and can be tailored to meet the needs of the organisation.

Which of the Following Is True Regarding Managerial Accounting