In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except a. be prepared to report information for any unit of the business to support decision making b. provide objective measures of past operations and subjective estimates about future decisions c. be prepared in accordance with generally accepted accounting principles d. be provided at any time management needs information

Question

Augustus Golden

Business

13 October, 15:48

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except a. be prepared to report information for any unit of the business to support decision making b. provide objective measures of past operations and subjective estimates about future decisions c. be prepared in accordance with generally accepted accounting principles d. be provided at any time management needs information

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Dallas Case · Answer 1

c. be prepared in accordance with generally accepted accounting principles.

Explanation:

Managerial accounting involves the use of accounting information by managers to make business decisions, this aids in management and control functions in a business.

Managerial accounting does not follow normal generally naccepted accounting practice but is ather tailored to the needs of the user. It is focused on how managers can plan for the future, develop plans for the company, and check if their earlier decisions were accurate.

Financial accounting on the other hand focuses on following accounting standards in reporting financial activity of a business.

Examples of areas of application of managerial accounting include job order costing, process costing, understanding cost behaviour, operational budgeting, and so on.