Managerial accounting reports are
A) prepared according to GAAP
B) prepared according to management needs
C) prepared periodically only
D) related to the entire business entity only

Question

Quizplus · Accepted Answer

Managerial accounting reports are prepared according to the needs of management rather than being bound by GAAP (Generally Accepted Accounting Principles). These reports are prepared as and when required by the management and are not limited to any specific period. Managerial accounting reports focus on specific departments or segments of the business and provide information regarding their performance, cost analysis, and budgeting. Therefore, Option B is the correct choice. Option A, C, and D are incorrect as they do not describe the characteristics of managerial accounting reports.

Managerial Accounting Reports Are