Why are cost management reports prepared?
A)to meet the needs of decision makers within the firm
B)to meet stockholders' requests
C)to meet guidelines prepared by the provincial securities commission
D)to meet financial accounting standards

Question

Quizplus · Accepted Answer

Cost management reports are primarily prepared to meet the needs of decision makers within the firm. These reports provide information on the company's performance and suggest ways to improve profitability, reduce costs, and increase efficiency. While meeting financial accounting standards is important, it is not the primary reason for preparing cost management reports. Similarly, addressing stockholders' requests and complying with securities commission guidelines may be important, but they are not the main reason for preparing cost management reports.

Why Are Cost Management Reports Prepared