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:

Advantage

A condition or circumstance that puts one in a favorable or superior position compared to others.

One Way Communication

A form of communication where information flows in only one direction, from the sender to the receiver, without feedback.

Community Building

The process of fostering the development of a connected and supportive network of individuals with common interests or goals.

Influencing Traditional News Coverage

Refers to the processes or strategies employed to impact the selection, tone, and prioritization of topics reported in conventional print and broadcast media.