In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:
A) provide objective measures of past operations and subjective estimates about future decisions
B) be prepared in accordance with generally accepted accounting principles
C) be provided at any time management needs information
D) be prepared to report information for any unit of the business to support decision making

Question

Quizplus · Accepted Answer

Management accounting reports are not required to be prepared in accordance with generally accepted accounting principles (GAAP) as they are meant for internal use by managers and not for external reporting purposes. Therefore, this option is not a necessary characteristic for management accounting reports to possess in order to be useful to managers. The other options listed are all essential characteristics of useful management accounting reports.

In Order to Be Useful to Managers, Management Accounting Reports