An executive at a manufacturing firm thinks his company should open a second manufacturing plant, but first needs to check a series of reports before making a decision. What will the executive use to make this decision?
A) financial accounting
B) managerial accounting
C) the statement of cash flows
D) a balance sheet

Question

Quizplus · Accepted Answer

The executive would use managerial accounting to evaluate the feasibility of opening a second manufacturing plant. Managerial accounting provides internal financial reports that are used to make decisions about the company's operations and future plans, such as whether or not to invest in a new venture. Financial accounting, statement of cash flows, and balance sheets provide important financial information, but they are focused more on reporting past activities rather than helping with future decision-making.

An Executive at a Manufacturing Firm Thinks His Company Should