What is the primary criterion for the preparation of managerial accounting reports?

Question 1 pts

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

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provide objective measures of past operations and subjective estimates about future decisions

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be prepared in accordance with generally accepted accounting principles

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be provided at any time management needs information

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be prepared to report information for any unit of the business to support decision making

Question 2 pts

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

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Investors

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Managers

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Employees

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Customers

Question 3 pts

What is the primary criterion for the preparation of managerial accounting reports?

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Relevance of the reports

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Meet the manager needs

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Timing of the reports

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Cost of the reports

Question 4 pts

Which of the following is most associated with financial accounting?

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Can have both objective and subjective information.

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Can be prepared periodically, or as needed.

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Prepared in accordance with GAAP

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Can be prepared for the entity or segment.

Question 5 pts

Managerial accounting reports must be useful to the user of the information.

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True

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False

Question 6 pts

Planning is the process of setting goals for the use of an organization’s resources and of developing ways to achieve these goals.

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True

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False

Question 7 pts

Managerial accounting provides useful information to managers on product costs.

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True

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False

Question 8 pts

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

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True

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False

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