Which of the following is true of profit maximization? a. Profit maximization results in maximum cost to and maximum production by a company. b. Profit maximization is achieved by considering the financial measures focused on only efficiency. c. Profit maximization should be achieved through legal and ethical means. d. Profit maximization is an objective of financial accounting but not managerial accounting.

Question

Matilda Cline

Business

21 August, 00:05

Which of the following is true of profit maximization? a. Profit maximization results in maximum cost to and maximum production by a company. b. Profit maximization is achieved by considering the financial measures focused on only efficiency. c. Profit maximization should be achieved through legal and ethical means. d. Profit maximization is an objective of financial accounting but not managerial accounting.

+1

Answers (1)

Know the Answer?

Hannah Figueroa · Answer 1

Answer: Option C

Explanation: In simple words, profit maximization refers to determining the level of operation at which the profit of the organisation would be maximum.

Managerial accounting is focused on collecting and analyzing business information and reporting it, whereas financial accounting use that information for the benefit of the business.

Hence from the above we can conclude that the correct option is C.