Which of the following is true of management accounting

Question:

Which of the following is true of management accounting information?

A) It focuses on documenting past business actions of a firm.

B) It is prepared based on SEC rules and FASB accounting principles.

C) It is prepared for shareholders.

D) It helps with the coordination of elements of the value chain.

Answer:

D) It helps with the coordination of elements of the value chain.

Explanation:

Management accounting information is used by managers within a company to make important decisions about how the business runs. This kind of information is geared towards the future and is designed to help managers make choices that will help the business succeed. It includes things like looking at costs, making budgets, predicting what might happen in the future, and measuring how well the company is doing.

One important part of management accounting is making sure that all the different parts of the business work well together so that everything runs smoothly and the business can be as efficient as possible. So, the correct answer is D. The other answers (A, B, and C) are not correct because management accounting is focused on the future, isn’t bound by certain rules, and is only used internally by managers, not by people who own stock in the company.

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