The unit of measurement used in management accounting is
A) primarily the historical dollar.
B) usually current replacement cost.
C) any measurement unit that is useful in a particular situation.
D) the measurement unit used by competing companies.

Question

Quizplus · Accepted Answer

Management accounting involves using information to make decisions within an organization. Therefore, the unit of measurement used in management accounting can vary depending on the situation and the type of decision being made. It could be historical dollars, current replacement cost or any other measurement unit that is relevant and helpful in the specific scenario. The unit of measurement used by competing companies may not be relevant to the decision making process in a different organization.

The Unit of Measurement Used in Management Accounting Is