Materiality is a fundamental consideration in the preparation and presentation of financial accounting reports. However, materiality has no role to play in the production of cost and management accounting reports as every detail is relevant.

Question

Quizplus · Accepted Answer

Materiality also plays a role in cost and management accounting as it helps in focusing on significant data, simplifying decision-making, and ensuring efficient use of resources by not overemphasizing inconsequential details.

Materiality Is a Fundamental Consideration in the Preparation and Presentation