Which of the following statements is true of management accounting?
A)The external stakeholders of a company are the primary users of management accounting.
B)Management accounting information is used to help managers plan and control their operations.
C)An external audit by an independent CPA is required for management accounting information.
D)Management accounting information must comply with Generally Accepted Accounting Principles.

Question

Quizplus · Accepted Answer

Management accounting is used by managers within an organization to plan, control, and make decisions about operations. It is different from financial accounting, which is primarily used for external reporting to stakeholders. External audits and compliance with GAAP are not necessary for management accounting information.

Which of the Following Statements Is True of Management Accounting