All of the following are characteristics of management accounting, except:
A) Reports are used primarily by insiders rather than by persons outside of the business entity.
B) Its purpose is to assist managers in planning and controlling business operations.
C) Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.
D) Information may be tailored to assist in specific management decisions.

Question

Quizplus · Accepted Answer

Management accounting is not required to conform to generally accepted accounting principles or income tax regulations as its purpose is to assist managers in decision-making and planning, rather than external reporting. The other options are all characteristics of management accounting.

All of the Following Are Characteristics of Management Accounting, Except