The costs of providing information to management should be less than the benefits. Which of the following are costs of management accounting information?
i. Salary cost of management accounting personnel
ii. Computer operating costs
iii. Managers' time in reading and acting on the information
A) i, ii and iii
B) ii and iii only
C) i and iii only
D) None of the given answers

Question

Quizplus · Accepted Answer

The costs of providing management accounting information include all direct and indirect expenses related to generating, processing, and delivering the information. This encompasses the salary costs of personnel involved in management accounting (i), the costs associated with operating computers and other technology used in the process (ii), and the time managers spend reviewing and acting upon the information provided (iii), as this time could have been used for other potentially beneficial activities.

The Costs of Providing Information to Management Should Be Less