Which of the following is most associated with managerial accounting?
A) Must follow GAAP
B) May rely on estimates and forecasts
C) Is prepared for users outside the organization.
D) Always reports on the entire entity

Question

Quizplus · Accepted Answer

Managerial accounting involves using financial and non-financial information to assist managers in making decisions for their organization. Because these decisions are future-oriented, managerial accounting often relies on estimates and forecasts rather than solely on historical data. Managerial accounting does not necessarily need to follow Generally Accepted Accounting Principles (GAAP) as it is intended for internal use and not for external reporting. It is also not always prepared for users outside the organization as it is primarily created for internal use by management. Additionally, the scope of managerial accounting reports can vary and may focus on specific departments or areas of the organization rather than the entire entity.

Which of the Following Is Most Associated with Managerial Accounting