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

Karen Pereyra · Accepted Answer

Final Answer : B, Explanation :  Managerial accounting is concerned with providing information to internal users (such as managers) to help them make informed business decisions. These decisions often rely on estimates and forecasts, rather than solely historical data, and are not required to follow Generally Accepted Accounting Principles (GAAP). Managerial accounting reports are also generally not shared outside of the organization, and may focus on specific segments or departments of the entity rather than the entire entity.

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

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Learning Objectives

Learning Objectives

Related questions

Which of the following is most associated with managerial accounting?A) must follow GAAPB) may rely on estimates and forecastsC) is prepared for users outside the organizationD) always reports on the entire entity

Definitions

Learning Objectives

Learning Objectives

Related questions

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