Managerial accounting does not encompass
A) calculating product cost.
B) calculating earnings per share.
C) determining cost behavior.
D) profit planning.

Question

Quizplus · Accepted Answer

Managerial accounting focuses on internal decision-making and providing information to help managers plan, direct, and control business operations. While calculating product cost, determining cost behavior, and profit planning are all areas that fall within the scope of managerial accounting, calculating earnings per share is typically part of financial accounting. Financial accounting is focused on providing information to external stakeholders, such as investors and creditors, and is governed by strict accounting standards and regulations.

Managerial Accounting Does Not Encompass