The primary objective of managerial accounting is:
A) to produce information for external users, including investors, creditors, customers, suppliers, and government agencies.
B) to produce financial information that must comply with various accounting standards.
C) to provide management with financial and nonfinancial information useful in planning, controlling, and decision making.
D) to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of an organization.

Question

Quizplus · Accepted Answer

The primary objective of managerial accounting is to provide management with financial and nonfinancial information that is useful in planning, controlling, and decision making. Managerial accounting focuses on providing information to internal users, not external users like investors, creditors, customers, suppliers, and government agencies. While financial information produced by managerial accounting must comply with accounting standards, this is not the primary objective. Additionally, managerial accounting is not focused on providing information to the Internal Revenue Service.

The Primary Objective of Managerial Accounting Is