Which of the Following Is a Difference Between Financial Accounting

question 25

Multiple Choice

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

• A)Financial accounting is designed to meet the needs of company managers, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.
• B)Financial accounting provides accounting information exclusively to government agencies, whereas managerial accounting is designed to specially meet the needs of suppliers and creditors.
• C)Financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers.
• D)Financial accounting provides company accounting information for public consumption, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.

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Definitions:

Assembly Worker

An employee tasked with the assembly of components into finished products, typically working on a manufacturing line.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the costs of goods produced.

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.