Management accounting information helps managers compare the 'profit' from selling the product 'as is' with the 'profit' from using the product as a direct material in the manufacture of another product.

Question

Quizplus · Accepted Answer

Management accounting information is designed to assist managers in making decisions about the operations of a business, including comparing the profitability of selling products as they are versus using them as materials in the production of other goods. This helps in optimizing resource utilization and maximizing profits.

Management Accounting Information Helps Managers Compare the 'Profit' from Selling