Managerial accounting is not governed by generally accepted accounting principles (GAAP).

Question

Quizplus · Accepted Answer

Managerial accounting is focused on providing information for internal use by management, and therefore is not required to follow GAAP rules for financial reporting to external parties such as shareholders or regulators. Instead, it often uses different methods and metrics to provide insights on the organization's operations and help with decision making.

Managerial Accounting Is Not Governed by Generally Accepted Accounting Principles