Which of the following statements is true of managerial accounting?
A)The external stakeholders of a company are the primary users of managerial accounting.
B)Managerial accounting information is used to help managers plan,direct and control their operations.
C)An external audit by an independent CPA is required for managerial accounting information.
D)Managerial accounting information must comply with Generally Accepted Accounting Principles.

Question

Quizplus · Accepted Answer

Managerial accounting is focused on providing information to internal users, specifically managers, to use in decision making, planning, directing, and controlling their operations. It is not primarily used by external stakeholders or required to comply with Generally Accepted Accounting Principles (GAAP). While an external audit may be performed on some aspects of managerial accounting information, it is not a requirement.

Which of the Following Statements Is True of Managerial Accounting