BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Provide information needed for decision making
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Provide information needed for creditors
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Provide information needed for planning
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Provide information needed for control
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Detailed explanation-1: -Answer and Explanation: The correct answer to this question is: b) Provide information managers need for market-wide interest.
Detailed explanation-2: -The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions. Its scope is quite vast and includes several business operations.
Detailed explanation-3: -A financial accounting system is aimed at external decision-makers such as investors, regulators, and creditors, while a managerial accounting system is aimed at internal decision-makers such as managers.
Detailed explanation-4: -Creditors are not the internal users. Creditors are outsiders and they are not intended to be the internal user of management information.
Detailed explanation-5: -Yes, accounting is complete. It provides all the information to the investors and the creditors because accounting communicates all the relevant information to its internal and external users.