BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is primarily concerned with internal reporting.
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is more concerned with verifiable, historical information than is cost accounting.
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focuses on the parts of the organization rather than the whole.
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is specifically directed at management decision-making needs.
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Detailed explanation-1: -Financial accounting is most concerned with addressing the needs of individual departments of the firm.
Detailed explanation-2: -Financial Accounting Financial accounting involves recording and categorizing transactions for businesses. This data is generally historical, meaning it’s from the past. It also involves generating financial statements based on these transactions.
Detailed explanation-3: -Cost accounting creates information in order to maintain track of activities in order to maximise revenue and effectiveness of the firm. Financial accounting determines the financial outcomes for the budgeting period as well as the status of holdings or even liabilities at the final day of that period.
Detailed explanation-4: -Which of the following topics is of more concern to management accounting than to cost accounting? internal reporting system that provides product costing and other information used by managers in performing their functions.