Choose the statement that best completes this sentence: 'Traditional management accounting focuses on ....'
A) budgeting systems, financial performance measures and cost control.
B) financial performance measures, external reporting and cost elimination.
C) non-financial performance measures, external reporting and cost control.
D) external reporting, labour-related activity measures and cost elimination.

Question

Quizplus · Accepted Answer

Traditional management accounting primarily focuses on budgeting systems, financial performance measures, and cost control. This includes creating budgets to plan and allocate resources, measuring financial performance through metrics such as profit and return on investment, and managing costs to ensure profitability.  Option B includes external reporting, which is not typically a focus of management accounting, and cost elimination instead of cost control. Option C includes non-financial performance measures, which are not traditionally emphasized in management accounting. Option D includes labour-related activity measures, which are not always relevant to all types of businesses.

Choose the Statement That Best Completes This Sentence: 'Traditional Management