Which of the following is a characteristic of management accounting?
A) It must follow generally accepted accounting principles.
B) It is used primarily by internal users.
C) It is concerned primarily with reporting past performance.
D) It uses historical costs as the sole measurement unit.

Question

Quizplus · Accepted Answer

Management accounting is used primarily by internal users such as managers and executives to make decisions related to planning, controlling, and evaluating business operations. It does not necessarily follow generally accepted accounting principles and can use various measurement units, including historical costs or other methods that provide relevant information for decision-making. It is also concerned with predicting and preparing for future performance, in addition to reporting past performance.

Which of the Following Is a Characteristic of Management Accounting