Which of the following descriptors refer to management accounting information?
A)It is only retrospective, reporting and summarizing in financial terms the results of past decisions and transactions.
B)It is driven by rules.
C)It is prepared for shareholders.
D)It is oriented to meeting the decision making needs of employees and managers inside the organization.

Question

Quizplus · Accepted Answer

Management accounting information is not only retrospective but also prospective, providing insights to managers for decision making. It is not driven by rules but by the needs of the organization. It is not prepared for shareholders but for internal use by managers and employees. Therefore, the best choice is D.

Which of the Following Descriptors Refer to Management Accounting Information