BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They may include non-financial information
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They are required by law to be produced
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They are used to aid planning
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They are for use by parties external to the organisation
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Detailed explanation-1: -Answer and Explanation: The correct answer is c. Managerial accounting places more emphasis on the future. Managerial accounting is used by the company for planning its future operations by making budgets, analysis, or other related activities that are for internal purposes.
Detailed explanation-2: -Which of the following statements correctly describes the use of management accounting in service and merchandising companies? Both service and merchandising companies use management accounting to plan for profits.
Detailed explanation-3: -Answer: a. Explanation: Management accounting is one of the branches of accounting which is associated with the presentation of accounting data for use by management of a company.
Detailed explanation-4: -Management accounting helps managers strategize, course correct and make informed decisions based on the analysis and interpretation of the financial data related to the internal operations of the company. Management accounting is a virtual tool to help the managers of an organization steer it towards their goals.