Which of the following is true regarding managerial accounting?
A) It often emphasizes on segments rather than the organization as a whole.
B) It must be prepared as according to generally accepted accounting principles.
C) Its primary focus is on providing information to external users.
D) It is less flexible than financial accounting.

Question

Quizplus · Accepted Answer

Managerial accounting typically focuses on specific segments or departments within an organization in order to aid in decision making for internal users, such as management.

Answer: B is incorrect as managerial accounting does not necessarily need to be prepared in accordance with GAAP, but rather tailored to the needs of the organization.

Answer: C is incorrect as the primary focus of managerial accounting is on providing information for internal users, not external users.

Answer: D is incorrect as financial accounting is typically less flexible due to the need to adhere to strict GAAP guidelines.

Which of the Following Is True Regarding Managerial Accounting