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:

Home Construction

Home construction involves the processes and resources required for building residential houses, including planning, design, permitting, and building.

Family Farms

Small-scale agricultural operations owned and managed by a family, primarily reliant on family labor.

Farm Subsidy

A governmental financial aid paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Agricultural Surpluses

The production of agricultural goods that exceeds the immediate needs of the population, leading to stockpiling or exports.