Choose the statement that best completes this sentence: 'Traditional management accounting focuses on .....'
A) budgets, financial performance measures and cost control.
B) financial performance measures, external reporting and cost elimination.
C) non-financial performance measures, external reporting and cost control.
D) external reporting, labour-related activity measures and cost elimination.

Question

Quizplus · Accepted Answer

Traditional management accounting is primarily focused on financial performance measures such as budgets, cost control, and various financial ratios to assess financial performance. External reporting is not the primary focus of traditional management accounting, although financial statements may be used to help inform decision-making. Cost elimination is also not a primary focus, although cost control is emphasized. Non-financial performance measures are not typically emphasized in traditional management accounting.

Choose the Statement That Best Completes This Sentence: 'Traditional Management