Management accounting is guided by generally accepted accounting principles.

Question

Quizplus · Accepted Answer

While management accounting may use financial information and data, it is not required to follow Generally Accepted Accounting Principles (GAAP) like financial accounting does. Management accounting is focused on providing internal decision-making information for management, rather than producing financial statements for external stakeholders. Therefore, management accounting is more flexible and can use non-GAAP methods and techniques to provide relevant and timely information to managers.

Management Accounting Is Guided by Generally Accepted Accounting Principles