Since hospitals,universities,and charitable organizations do not exist strictly to earn profit for shareholders,managerial accounting information is not vital to their operations.Managerial accounting information is vital to nonprofit organizations,including hospitals,universities,and charitable organizations.Although these organizations do not exist strictly to earn profit for shareholders,their managers still need managerial accounting information to prepare budgets,manage resources,and make strategic and operational decisions.

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Managerial accounting information is crucial for nonprofit organizations to effectively manage resources, prepare budgets, and make informed strategic and operational decisions, even though they do not aim to earn profits for shareholders.

Since Hospitals,universities,and Charitable Organizations Do Not Exist Strictly to Earn