Which of the following is true of Managerial Accounting?
A)Complies with Securities and Exchange Commission rules and regulations.
B)Uses cost-benefit analysis to determine the amount of detail presented.
C)Prepares general-purpose reports for people outside an organization.
D)Presents summary historical data in compliance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

Managerial Accounting focuses on providing information to internal users, such as managers and employees, for decision-making purposes. As such, it uses cost-benefit analysis to determine the level of detail presented and ensure that information is relevant and useful for decision-making. The other options are incorrect as Managerial Accounting does not comply with SEC rules, does not prepare general-purpose reports for external users, and does not necessarily comply with GAAP.

Which of the Following Is True of Managerial Accounting