BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Is directed an internal users
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Must comply with GAAP standards
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Presents very detailed information
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Presents only monetary information
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Places emphasis on future
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Detailed explanation-1: -Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past. A firm’s organization chart will normally show both the formal and informal lines of reporting and communication.
Detailed explanation-2: -People in this type of accounting are focused on the future, and will often run “what-if” scenarios for company leadership to help them make decisions to ensure the business stays profitable. On a day-to-day basis, people in managerial accounting will follow internal rules and best practices to accomplish tasks.
Detailed explanation-3: -Answer and Explanation: Management accounting is in the favor of placing less emphasis on precision and more emphasis on timeliness compared to financial accounting.
Detailed explanation-4: -Managerial accounting places less emphasis on precision and more emphasis on flexibility and relevance.
Detailed explanation-5: -Managerial accounting information is aimed at helping managers within the organization make well-informed business decisions, while financial accounting is aimed at providing financial information to parties outside the organization.