Management accounting reports are prepared:
A) to provide up-to-date information to managers for decision making.
B) to provide information for the shareholders of the business entity.
C) based only on historical figures.
D) based on GAAP and IASB accounting standards.

Question

Quizplus · Accepted Answer

Management accounting reports are prepared to provide up-to-date information to managers for decision making. These reports include budgets, forecasts, variance reports, and other financial and non-financial information that helps managers make informed decisions about the business. The information presented in these reports is usually not based solely on historical figures, but rather includes both past and projected information. While management accounting reports may comply with certain accounting standards, they are not necessarily bound by GAAP or IASB guidelines. Shareholders may receive some information from these reports, but they are not the primary audience.

Management Accounting Reports Are Prepared