Which of the following statements about managerial accounting is incorrect?
Managerial accounting information is used primarily by managers in the organization.
Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles).
Managerial accounting is primarily forward looking as opposed to focusing on historical information.
Managerial accounting information is used both at the organizational level and at the subunit (department) level.
Budgets are an important managerial accounting tool.
Solution
Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles) is incorrect.
Management accounting information is prepared based on the data, circumstances and values of each firm. All these are prone to change according to company.
Managerial accounting is primarily forward looking as opposed to focusing on historical information is incorrect.
Management accounting is not used for estimation for future performance. It is maintained and prepared on the basis of historical values only.
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Which of the following statements about managerial accounting is incor.docx
1. Which of the following statements about managerial accounting is incorrect?
Managerial accounting information is used primarily by managers in the organization.
Managerial accounting information is prepared in accordance with rules established by outsiders
(generally accepted accounting principles).
Managerial accounting is primarily forward looking as opposed to focusing on historical
information.
Managerial accounting information is used both at the organizational level and at the subunit
(department) level.
Budgets are an important managerial accounting tool.
Solution
Managerial accounting information is prepared in accordance with rules established by
outsiders (generally accepted accounting principles) is incorrect.
Management accounting information is prepared based on the data, circumstances and values of
each firm. All these are prone to change according to company.
Managerial accounting is primarily forward looking as opposed to focusing on historical
information is incorrect.
Management accounting is not used for estimation for future performance. It is maintained and
prepared on the basis of historical values only.
