Which of the Following Statements Is True About the Use

question 130

Multiple Choice

Which of the following statements is true about the use of managerial accounting information in nonprofit organizations?

• A)Universities do not exist strictly to earn profit for shareholders,so managerial accounting information is not vital to their operations.
• B)Unlike other nonprofits,hospitals (which exist with a focus on financial results in addition to health metrics)make use of managerial accounting.
• C)Because managers of nonprofit organizations need timely and relevant information to make decisions,managerial accounting is vital to these organizations.
• D)Because nonprofit organizations-hospitals,educational institutions,charities-do not exist with a profit motive,they do not use managerial accounting principles.

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Definitions:

Life Expectancy

The average number of years an individual is expected to live based on current mortality trends and health conditions.

Health Expectancy

The expected number of years of life remaining at a particular age, with an emphasis on the years to be spent in good health or free from debilitating diseases.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and distinctive art forms.

Disability Years

A metric used to quantify the impact of disabilities on an individual's life, often in terms of years lived with reduced quality of life.