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 information is used by managers within a company to make decisions related to planning, directing, and controlling their operations. The information is not primarily intended for external stakeholders, and typically does not require an external audit. While managerial accounting information should be accurate and reliable, it is not required to comply with Generally Accepted Accounting Principles (GAAP) as financial accounting information is.

Which of the Following Statements Is TRUE of Managerial Accounting