Which of the following statements is true of managerial accounting?
A) Reporting under managerial accounting is constrained by rules such as generally accepted accounting principles.
B) Managerial accounting is required to be reported annually, also may be reported monthly or quarterly.
C) Managerial accounting provides information to the external stakeholders of the company.
D) Managerial accounting is primarily concerned with generating information for use by managers.

Question

Quizplus · Accepted Answer

Managerial accounting is concerned with providing information to managers within the organization, in order to assist in decision-making, planning, and control of business operations. It is not bound by external reporting requirements such as GAAP, and its reports may be prepared as frequently as needed to support management decision-making. Unlike financial accounting, which is primarily focused on external stakeholders, managerial accounting is directed towards internal users of information.

Which of the Following Statements Is True of Managerial Accounting