Which of the following is true of management accounting information?
A) It focuses on documenting past business actions of a firm.
B) It is prepared based on SEC rules and FASB accounting principles.
C) It is prepared for shareholders.
D) It helps with the coordination of elements of the value chain.

Question

Quizplus · Accepted Answer

Management accounting information is used for internal decision making and is concerned with improving the efficiency and effectiveness of the value chain of a business. It includes information such as budgets, forecasts, and cost analysis to help management coordinate and control the activities of different departments and functions within the organization. Choices A, B, and C are incorrect because management accounting information is forward-looking and is not prepared according to SEC rules or FASB accounting principles, nor is it primarily intended for shareholders.

Which of the Following Is True of Management Accounting Information