Which of the following statements is incorrect?
A) Management uses accounting information to determine the cost of products and services.
B) Management uses accounting information to plan and control business operations.
C) Management uses accounting information to report the company's financial position and results of operations to external parties.
D) Financial accounting is more relevant to use for internal decision making purposes than is management accounting.

Question

Quizplus · Accepted Answer

Management accounting, not financial accounting, is specifically designed for internal decision making, planning, and control. Financial accounting focuses on providing information to external parties, such as investors and creditors.

Which of the Following Statements Is Incorrect