The Purpose of Financial Accounting Is to Provide Information for Decision

question 39

Multiple Choice

The purpose of financial accounting is to provide information for decision making. What is the primary purpose of management accounting?

• A) To enable managers to ask for higher salaries
• B) To maximise a company's profits
• C) To provide information for decision making
• D) To create a value chain

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Definitions:

Vertical (Y) Axis

The axis in a coordinate plane that typically represents the dependent variable in a graph, running perpendicular to the horizontal (X) axis.

Horizontal (X) Axis

The line on a graph that runs horizontally, often used to represent the independent variable in data presentations.

Incremental Revenues

Additional revenue generated from new sales activities or strategies, beyond existing income streams.

Incremental Costs

Additional costs that a company incurs when increasing its production or activities over a certain threshold.