Which of the Following Is a Difference Between Managerial Accounting

question 119

Multiple Choice

Which of the following is a difference between managerial accounting and financial accounting?

• A) Financial accounting is governed by a set of generally accepted accounting principles, whereas managerial accounting uses procedures developed internally that are not required to follow generally accepted accounting principles.
• B) Financial accounting is primarily intended to provide information to internal stakeholders, whereas managerial accounting is primarily intended to provide information to external stakeholders.
• C) Managerial accounting summarizes the past performance of a company, whereas financial accounting provides reports on the past performance of a company and also makes projections about the future.
• D) Managerial accounting presents financial statements on a predetermined schedule, whereas financial accounting creates reports upon request by management rather than according to a predetermined schedule.

Understand the concept of operating leverage and its impact on a project's financial performance.

Identify the characteristics and implications of capital-intensive projects.

Recognize the relationship between variable and fixed costs and their effect on production.

Comprehend the significance of break-even points in financial analysis.

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