Managerial Accounting: The objective of
To identify: The item which is not a characteristic of managerial accounting
Answer to Problem 1QC
Option ‘a’is correct.
Emphasizes the external financial statement is correct.
Explanation of Solution
External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.
Option b.
Provide detailed information about individual parts of the company.
Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form
So, option b is incorrect.
Option c.
Emphasizes relevance
Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.
So, option c is incorrect.
Option d .
Focuses on the future.
The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The
So, option d is incorrect.
Thus, option ‘a’ is correct among the given options.
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Chapter 18 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
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