The Primary Objective of Management Accounting Is

question 6

Multiple Choice

The primary objective of management accounting is

• A)to provide shareholders and potential investors with useful information for decision making.
• B)to provide banks and other creditors with information useful in making credit decisions.
• C)to provide management with information useful for planning and control of operations.
• D)to provide the relevant taxation authorities with information about taxable income.

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Definitions:

Fixed Corporate Costs

Expenses that do not vary with production levels, including salaries of executives, rent, and insurance.

Fixed Costs

Expenses that do not change with the level of output or sales over a specific period, such as rent, salaries, or insurance.

Financial Advantage

The gain or benefit obtained in financial terms, often seen in the context of investments or business operations.

Financial Advantage

Financial advantage refers to the benefit obtained from making a financial decision that results in positive outcomes, such as cost savings or increased revenue.