Management accounting information of a company is primarily used by: Multiple Choice a) its customers to understand the pricing of a product. b) its investors to make investment decisions. c) its creditors to understand the credibility of the business. d) its employees to plan and control operations.

Question

Heaven

Business

6 February, 15:54

Management accounting information of a company is primarily used by: Multiple Choice a) its customers to understand the pricing of a product. b) its investors to make investment decisions. c) its creditors to understand the credibility of the business. d) its employees to plan and control operations.

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Ronin Ortega · Answer 1

d). it's employees to plan and control operations

Explanation:

Management accounting, as the name suggests refers to analysis of cost of production and identifying and correcting those areas which increase the cost of production and presentation of this information to the management so as to take important decisions.

Management accounting aims at cost reduction without compromising the quality of products. It focuses upon optimal utilization of resources and efficiency.

The end users of management accounting information are the employees and the management itself.

Thus the objective of presentation and disclosure of such costs is to plan and control operations more efficiently.