The area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making is known as
A) financial accounting.
B) managerial accounting.
C) auditing.
D) cost accounting.

Question

Quizplus · Accepted Answer

Managerial accounting focuses on providing information to the management team to help them make business decisions. This type of accounting is not intended for external parties, such as investors or regulators. Instead, it is used by the people within the company who need to make strategic choices based on financial data. Managerial accounting may involve creating and analyzing reports related to budgets, forecasts, inventory, and other areas of a business.

The Area of Accounting That Involves the Preparation of Internal