Financial accounting information focuses on historical transactions and rarely includes future-oriented costs. For an EMA system to be effective in helping management make good decisions, it will need to include

Question

Quizplus · Accepted Answer

An effective EMA system needs to have a more open-minded and forward-looking definition of cost that considers not just historical transactions but also future-oriented costs. This will help management make better decisions by taking potential future costs and benefits into account. Choices A and B are not relevant or appropriate solutions.

Financial Accounting Information Focuses on Historical Transactions and Rarely Includes